under armour and decision making
DESCRIPTION
June 30, 2012TRANSCRIPT
Under Armour
D e c i s i o n M a k i n g
June 30, 2012
MGMT 5138 – Team 4
H. Stock
M. Platner
J. Varini
Y. Ueki
Under ArmourBrand Mission
To make all athletes better through passion, design and the relentless pursuit of innovation
Founded in 1996 by Kevin Plank
Simple idea: make a superior T-shirt
Under ArmourThe Beginning
Under ArmourThe Hustle
Build a company with the same principles learned on the football field
Brand identity is the team
Under ArmourToday
3% of U.S. sports apparel market
Expanded product line
Logo presence
Under ArmourFinancials
2012 net revenues to reach $1.8 billion
Q1 2012 is 8th consecutive quarter of revenue growth in excess of 20%
Decision Making
Decision Making
“Process of identifying problems and opportunities and then resolving them”
- Daft, R. L., & Marcic, D. (2012). Understanding Management, 8th ed.
Strategic Decisions
Tactical Decisions
Operational Decisions
Hierarchy of Decisions
Under ArmourProblems
How does Under Armour sustain growth?
Revenues grew from $5 million in 2000 to $205 million in 2004.
Under ArmourOpportunities
Rosewood Capital
Expansion
Possible Acquisitionsj
Under ArmourIPO
Filed Papers with SEC – August 26, 2005
Decision based on “hope” to:Raise $100 million.Use $12 million to buy back stockSecure “a war chest” of working capital.Use $25 million to pay off debt.
Under ArmourAlternative Solutions?
“They have pretty much pushed the net capacity as far as it would go, and that's going to limit the amount of growth they can have. They've been successful at what they can do. Now they'll be able to really push the envelope, and to do that they're going to need a lot of capital.”
-Irv DeGraw, assistant professor of finance at Washington College.
Under ArmourRisk
Decision has clear goals, good information is available but outcome is subject to chance.
- Daft, R. L., & Marcic, D. (2012). Understanding Management, 8th ed.
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Under ArmourTwo-for-One Stock Split
“We are proud of the value we have delivered to our stockholders over the long-term, and we believe this stock split may broaden our investor base and improve the trading liquidity of our stock”
- Kevin Plank, CEO Under Armour.
1. Build a great product2. Tell a great story3. Service the business4. Build a great team
Four Pillars of Greatness
Advertisement
Passion
Innovation
Make all athletes better
Design
Sponsorships & Endorsements
“Nothing is really God-given. You have to embrace
the things you feel are important and work hard –
will it to happen.” –Kevin Plank
“My vision is that I want to stay focused… We want to make sure there is nothing that prevents us from doing what we want to do with our brand. Finally, we want to have the best type of people – team, team, team. I can’t underscore that need enough.” –Kevin Plank
“You have to believe in yourself” –Sun Tzu
“I was always naïve enough to not know what I could not accomplish”
Understanding K. Plank’s Personal Decision Making Style
Under ArmourA Team
Kevin Plank and Emotional Intelligence
What makes a leader?
Lessons Learned
• Decision-making evolves with the business and the leader
• Managers must evolve from transactional decision-makers to strategic leaders
• High EQ is critical
