Principles and Practice of Management

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Principles and Practice of Management

Principles and Practice of Management

Kevin Plank says ‘scars are cool’ as he looks back on Under Armour’s 2017
Under Armour Inc. “learned a lot of lessons” in 2017 that CEO Kevin Plank said Wednesday will help the sportswear maker make a comeback and turn itself around.
Appearing in an interview with high-energy CNBC analyst Jim Cramer, Plank said Baltimore-based Under Armour’s entire organization remains “focused as a business and we’re confident in what we’re doing.” He also said the company is also “the best at getting better.”

Under Armour (NYSE: UAA) was a Wall Street darling for years with its fast-paced growth. But the 22-year-old company tumbled in 2017 amid a slowdown in North American sales and declining margins. Its stock fell almost 50 percent during the year.
Then, the brand began to show signs of a possible turnaround in the fourth quarter with stronger sales than analysts anticipated.
Appearing on Cramer’s “Mad Money,” Plank said 2017 was a year for getting better and Under Armour made the changes that are necessary to be a “loud brand and a quiet company” that does $5 billion in revenue. He also said company is better off because of what happened in 2017.
“I’ve got an 11-year-old girl and a 14-year-old boy, and I’ve told them scars are cool,” Plank said. “Scars are cool because they remind us of where we’ve been and remind us of what we’ve seen, but they also know that we’re focused and we’re moving.”
Cramer said he thinks Under Armour “is poised to turn around” and that Plank has the chip on his shoulder that helped make Under Armour so successful in the first place.
“I think he’s back,” Cramer said.
Under Armour, which reported 2017 revenue of $4.98 billion, battles top competitors Nike Inc. and Adidas in the sportswear industry.
Plank listed several key initiatives in 2017 he said will make the company stronger, including upgrades to its software systems. It also brought on industry veteran Patrik Frisk as president and changed its structure so that there are people overseeing distinct categories, like basketball, training and running, instead of heads of apparel and footwear.
“We can stay closer to the consumer that way,” Plank said.
Plank also said Under Armour will continue to focus on performance while making sure its products are also fashionable.
“At the center of everything that we do is the consumer is an athlete is an athlete is an athlete,” Plank said. “Some people say [a focus on performance] may be a weakness for us. We believe it will prove to be our long-term greatest strength.”
When Cramer asked if Plank was humbled by 2017, the Under Armour founder responded by saying he would like to think he never needed the lesson.
Plank went on to say his job is to represent all of Under Armour’s employees and that he is proud of “the resilience of team we have.”
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“This chapter 17 that we lived through and what we’re doing in 18 will prove to be one of the most important chapters that we have had in our 22-year history,” Plank said.

Assume that you are the consultant of Under Armour.Discuss the level of social responsibility of Under Armour.

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