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Table Content

I. Introduce.................................................................................................................................2
II. Body.......................................................................................................................................2
1. An introduction to sub-sectors and the different types of organizations in the sport industry,
the market size and the growth of the international business environment................................2
1.1 Overview of sub-sectors.......................................................................................................2
1.2 Provide an overview of the market size (international and national) of the sports industry.
....................................................................................................................................................3
2. A factsheet for two selected sub-sector organizations in Vietnam........................................4
2.1. Li-Ning................................................................................................................................4
2.2. Skechers:.............................................................................................................................6
3. Company’s organizational chart to show how internal departments work together to meet
business objectives and how interrelationships are defined by the structure of the organization
....................................................................................................................................................7
3.1. Li-Ning organization chart..................................................................................................7
3.2. Skechers organizational chart............................................................................................10
4. Provide critical analysis of the complexities of different organizations and structures.......13
4.1. Adidas................................................................................................................................13
4.2. Nike...................................................................................................................................14
III. Conclusion..........................................................................................................................15
IV. REFERENCES...................................................................................................................15

I. Introduce
As a Junior Insights Strategist at Li-Ning Vietnam, where I am responsible for performing in-
depth assessments that inform the strategic direction of the organization. With regard to market
size, investigation of subsectors, and mapping of top-performing companies, this research aims to
provide a thorough grasp of the sports business. Our goal in exploring these areas is to identify
market trends, identify avenues for growth, and enhance Li-Ning Vietnam's strategic decision-
making processes.

II. Body
1. An introduction to sub-sectors and the different types of organizations in the sport industry,
the market size and the growth of the international business environment.
1.1 Overview of sub-sectors
- Public sector: This refers to public sports facilities that receive funding from charities
and the government. Aims to provide funding, infrastructure, management of sports
activities and focus on increasing participation and promoting health benefits of sports
(Indeed,2023). For example, the Vietnam Sports Administration (SAV) belongs to the
Ministry of Culture, Sports and Tourism. As the national governing body for sport,
SA is responsible for developing and implementing policies to promote sports
participation across Vietnam. They also manage elite athlete programs and national
teams that compete internationally (TDTT,2024)

- Private sector: this sub-sector offers fitness classes, sports or outdoor activities or
various commercial sports activities to consumers to generate profit. Aims to generate
revenue by providing sports-related services or products. This can include facilities,
equipment, sponsorship broadcast rights and merchandise (Indeed,2023). For
example, California Fitness & Yoga - This large chain of fitness centers represents the
private sector in the Vietnamese sports industry. Founded in the United States,
California Fitness & Yoga offers a variety of workout programs, classes, and gym
memberships that serve health-conscious Vietnamese citizens (Cali,2024).

- Voluntary sector: Includes many different non-profit organizations that focus on


specific sports, communities or age groups involved in sports. Create opportunities for
people to compete often at the local level. Much depends on the time and effort of
volunteers (Indeed,2023). For example, Sunrise Events Vietnam (SEV) creates the
most anticipated mass participation events in Southeast Asia, expanding the sports
and wellness ecosystem, while delivering transformative impact. change and
sustainability for the individuals, businesses and communities we aim for
(Marathonhcmc,2024)

1.2 Provide an overview of the market size (international and national) of the sports
industry.
1.2.1 International market size
The global sports industry is an amalgamation of several complementary markets that, when
combined, have the ability to directly influence the global economy. The industry includes
several submarkets, including sporting goods, nutrition, and sports betting. In 2023, the
revenue of the global sports equipment market amounts to more than US$160 billion, while
the global sports and active nutrition market is valued at nearly US$28 billion by
2022.Market The Sports Events market is predicted to generate $33.77 billion in revenue by
2024. This forecast takes into account an expected annual growth rate (CAGR 2024-2028) of
2.95%, bringing a market value of 37.94 billion USD by 2028.
- According to the newspaperThe Guardian, FIFA World Cup 2022 has total revenue
from commercial partners of 7.5 billion USD. This number is 1 billion USD more
than the 2018 World Cup (Tran, 2022). Or like the Summer Olympics in
2016Revenue from sponsors for the recent Rio Olympics reached more than one
billion USD, an increase of 7.6% compared to the previous Olympics (Marcom,
2016).
- According to Mordo (2024) Sportswear Market size is estimated to reach USD 272.51
billion by 2024 and is expected to reach USD 339.76 billion by 2029, growing at a
CAGR of 4.51 % during the forecast period (2024-2029).
According to Statista, in 2023, revenue at the Vietnamese footwear market is expected to
reach nearly 2.21 billion USD, with an estimated annual growth rate of 5.72% (CAGR index
for the period from 2023 to 2028). . In 2023, the Textile, Apparel and Other Footwear
segment dominates the market with sales of 0.71 billion USD, which is estimated in the
Vietnamese market to generate revenue of about 22.21 USD for the Footwear industry. By
2024, the sportswear market is predicted to grow by 2.9%.
1.2.2 The growth of the international business environment of the sport industry
Today's sports industry operates in a volatile and competitive international business
environment. With traditional tournaments expanding their reach, attracting players and fans
around the world. For example, European football leagues such as La Liga and Premier
League have significant global audiences and feature players from many different
nationalities (Deloitte, 2023). Or in the relationship between sports and politics, Sports can
serve as a tool for diplomacy and international relations. Governments can use sporting
events and competitions to improve relations with other countries or showcase their national
image on the global stage. For example, countries compete to host major sporting events such
as the Olympics or the World Cup to enhance their international status (Jin, 2012).

2. A factsheet for two selected sub-sector organizations in Vietnam


The organizational framework that controls a company entity's operations is its legal
structure. The right legal structure, often known as a business ownership structure, business
structure, or business form, depends on your company's goals and size. There are three
primary types of legal structures: corporations, partnerships, and sole proprietorships.

2.1. Li-Ning
Li-Ning is a leading Chinese sports footwear and apparel company, founded by gymnast Li
Ning. He founded the company in 1990. The company's headquarters is located in Hong
Kong, bringing together hundreds of high-end designers from Italy, Spain, America, etc (Li-
Ning, 2024). In 2009, Li-Ning officially appeared in the Vietnamese market and gradually
developed into a famous and prestigious sports fashion brand for Vietnamese people.
Operating in the form of a two-member foreign limited liability company has helped Li-Ning
Vietnam easily mobilize capital from foreign investors and fully control its business
operations. With the scale of a large enterprise, Li-ning Vietnam has more than 100 sales
points across the country, operating as a manufacturer and distributor.
Li-Ning Vietnam's vision is to become a leading global sports brand, inspiring Vietnamese
people to lead an active lifestyle and enjoy the benefits of a healthy and fulfilling life. full of
energy (Li-Ning Vietnam, 2024). Li-Ning Vietnam is committed to providing Vietnamese
customers with high quality, innovative and competitively priced sporting goods. Their
mission focuses on contributing to the overall health and well-being of the Vietnamese
community by promoting physical activity. (Li-Ning Vietnam, 2024)
Li-Ning's stakeholders include customers, suppliers, employees, managers and government
regulatory agencies. Customers are the final consumers of a company's products and services,
while suppliers provide raw materials and finished products for the production process.
Employees and managers play an important role in driving the company's daily business
operations. Government regulators monitor and regulate company operations according to the
law.
Li-Ning's organizational structure supports its business goals through facilitating rapid
decision making and encouraging innovation. The company's size allows for agility and
flexibility in meeting the specific needs of its target market. Li-Ning focuses on providing
high-quality sports products and services to customers, with the goal of becoming one of the
leading sports brands in the world (Li-Ning Vietnam, 2023).
Links between organizations can be through supply-receive relationships, marketing or
distribution collaborations, or even through strategic partnerships. For example, Li-Ning may
partner with a footwear company to produce new products or expand their existing product
line. This relationship will help Li-Ning expand its product range and meet customer needs
effectively, while enhancing revenue and profits for both parties.
Li-Ning Vietnam's business goal is to increase its nationwide presence by opening new stores
across Vietnam (Li-Ning Vietnam, 2024). Besides, as a for-profit enterprise, Li-Ning
Vietnam strives to increase revenue and generate financial profits naturally. Li-Ning Vietnam
aims to become the top choice for sportswear for Vietnamese consumers by increasing brand
recognition and positive brand associations (Li-Ning Vietnam, 2024). Ultimately, Li-Ning
Vietnam wishes to secure its leading position in the Vietnamese sportswear market, winning
the hearts and wallets of Vietnamese athletes and fitness enthusiasts.( Li-NingVietnam, 2024)

2.2. Skechers:

Skechers, founded in 1992 by Robert Greenberg, is a renowned American footwear company


headquartered in Manhattan Beach, California. Initially focusing on utility-style boots and
skate shoes, Skechers has evolved into a global leader in casual and athletic footwear, with a
diverse range of products for men, women, and children. Skechers prides itself on innovation,
quality, and comfort, consistently pushing boundaries in design and technology to meet the
ever-changing demands of its consumers.

Since its inception, Skechers has expanded its presence internationally, with operations
spanning across numerous countries. In Vietnam, Skechers officially entered the market in
2019, quickly establishing itself as a prominent and reputable brand in the Vietnamese
footwear industry. Operating as a subsidiary under the parent company, Skechers Vietnam
operates with the goal of providing high-quality, stylish, and competitively priced footwear to
Vietnamese consumers (Skechers,2024).

Skechers Vietnam's vision aligns with its global mission of inspiring people to live active,
healthy lifestyles. Through its innovative products and marketing campaigns, Skechers aims
to encourage Vietnamese individuals to embrace physical activity and enjoy the benefits of
an energetic and fulfilling life. The company is committed to promoting wellness and
contributing to the overall health of the Vietnamese community.

Skechers stakeholders include Consumers who purchase Skechers footwear and fashion
products from retail stores or online, Manufacturers of footwear, materials and fashion
accessories who provide raw materials and products for Skechers,Employees work at
Skechers manufacturing facilities, representative offices, and retail stores
worldwide,Skechers' senior management team includes executives, Marketing director,
financial director and other management positions are responsible for managing and
operating the company's business activities.
Skechers has a complex organizational structure, with a network of branches and stores
spread across the world. Management decisions are made at specific levels, depending on the
specific needs and requirements of each area. Skechers is a global corporation with thousands
of employees working at manufacturing and retail facilities in many countries. Not only that,
Skechers provides a wide range of footwear and fashion products for men, women and
children. children, including sneakers, rain boots, boots, sandals, and accessories. The
company also provides after-sales services such as warranty and returns.

In pursuit of its business objectives, Skechers Vietnam focuses on expanding its nationwide
presence by strategically opening new stores and distribution channels across Vietnam.
Additionally, as a profit-driven enterprise, Skechers Vietnam aims to achieve financial
growth and profitability while maintaining its commitment to delivering value to its
customers. The company strives to enhance brand recognition and cultivate positive
associations with its products, aiming to solidify its position as the preferred choice for
sportswear among Vietnamese consumers (Skechers,2024).

Ultimately, Skechers Vietnam aspires to cement its leading position in the Vietnamese
footwear market, capturing the hearts and wallets of athletes, fitness enthusiasts, and
everyday consumers alike. With a relentless dedication to innovation, quality, and customer
satisfaction, Skechers continues to elevate its presence in the global footwear industry while
making significant strides in the Vietnamese market.

3. Company’s organizational chart to show how internal departments work together to


meet business objectives and how interrelationships are defined by the structure of the
organization

3.1. Li-Ning organization chart


Table 1: Li-Ning Organization chart (The ORG,2024)

Li-Ning has also implemented a functional organization chart, in which the company is
divided into different departments according to their respective areas of expertise. These
departments are formed based on expertise, skill sets and associated roles such as marketing,
sales, operations, human resources and finance. According to Li-Ning Management report
(2023) Li-Ning's organizational structure is divided into several departments, including
finance, marketing, sales, human resources, product and engineering, legal, activity and
health. The company's management team includes John Vademore (Chief Financial Officer),
Jeremy Saul (Managing Director - Global Licensing and Strategic Partnerships), and
Christopher Coye (Vice President of Information Technology and CIO).

3.1.1. Advantages of the organizational structure on the interrelationships


This functional organizational chart brings specific advantages to Li-Ning. Li-Ning's functional
organizational chart enables the company to leverage the knowledge and skills of its employees
effectively. For example, Li-Ning maintains a specialized marketing department responsible for
developing and executing marketing strategies. This department possesses the requisite abilities and
expertise to craft impactful marketing campaigns tailored to Li-Ning's target audience. Moreover, Li-
Ning's functional organizational chart helps prevent redundant efforts. For instance, Li-Ning has a
dedicated sales department tasked with selling Li-Ning products to retailers and consumers alike. This
department possesses the necessary skills and expertise to promote Li-Ning products effectively. Li-
Ning's functional organizational chart ensures a clear and efficient chain of command, facilitating
smoother operations within the company (Li-Ning Vietnam, 2024).

3.1.2. Disadvantages of the organizational structure on the interrelationships


Using a functional organization chart also brings some limitations to Li-Ning. Using Skechers'
functional organization chart can present challenges in creating effective communication between
different departments. In particular, the marketing department may need to create effective
communication with the sales department to ensure that their marketing efforts are aligned with the
overall sales goals of the sales team. . In case of poor communication between these two departments,
important consequences such as missed sales opportunities can occur (Barlow, 2023). Furthermore,
Skechers' adoption of a functional organizational chart can hinder coordination of efforts across
disparate departments, especially when involved in complex work. For example, marketing and sales
departments may need to collaborate to successfully launch a new product. In cases where
coordination between these departments is insufficient, it can cause problems such as delays in
product launches.

3.1.3. Interrelationships between departments of Li-Ning

Li-Ning, one of the leading sports companies in China, has an organizational chart that
divides work by function, with important departments such as finance, marketing, research
and development ( R&D), production and human resource management. Each department has
an important role in ensuring the company's business activities are carried out effectively and
to the benefit of the company.

- Li-Ning's finance department is responsible for financial management, cost control


and management of the company's financial resources. The finance department helps
maintain financial stability for Li-Ning. Managing budgets and financial risks ensures
that the company has enough resources to maintain and grow its business.
- The marketing department is responsible for developing marketing strategies,
branding and advertising products. Marketing has a major influence on organizational
structure by determining how Li-Ning interacts with customers, requiring
collaboration with other departments to provide product information and sales
support.
- Li-Ning's R&D department undertakes the research and development of new products
and advanced technologies in the sports industry. R&D has a great influence on the
organizational structure by shaping the direction of the company's product
development. company, requiring close collaboration with other departments such as
manufacturing and marketing to ensure that new products are brought to market
efficiently.
- Manufacturing Department: Li-Ning's manufacturing department is responsible for
manufacturing and producing products as required. They provide information about
production capabilities and production resources to other departments, helping them
plan production effectively.
- Human Resources Department: Li-Ning's human resources department is responsible
for recruiting, training, and managing employees. They provide information about
human resources and employee capabilities to other departments, helping them better
understand the strengths and limitations of their work team.

The relationships between these departments are extremely important to achieving the
company's business goals. For example, the marketing department needs to work closely with
the R&D department to understand new products being developed and ensure that the
marketing strategy is appropriate to the product characteristics. The finance department takes
on the role of financial management of the company, including budget management, finance,
and accounting. They need to work with the Marketing department to ensure that marketing
budgets are managed effectively and invested in profitable marketing campaigns. Or like the
Production Department responsible for producing Li-Ning's sports products. They work
closely with the Marketing department to ensure that the products produced meet the needs of
the market. They also provide information about production capabilities to help the
Marketing department determine appropriate marketing strategies.

Impact of organizational functions on organizational structure:

- Cost-effective: Streamlined organization helps minimize operating costs through


optimizing interactions between departments.
- Enhanced flexibility: A flexible organizational structure helps Li-Ning easily adapt to
changes in the business environment.
- Enhance work performance: A good organizational structure helps increase
productivity work efficiency through optimization of processes and resource
management.

3.2. Skechers organizational chart


Table 2: The Skechers organizational chart (The ORG,2024)

Skechers has implemented a functional organizational chart, wherein the company is


segmented into various departments according to their respective areas of proficiency. These
departments are formed based on specialization, skillset, and interconnected roles like
marketing, sales, operations, human resources and finance. As reported by Skechers
Management (2023) Skechers's organizational structure is divided into several departments,
including finance, marketing, sales, human resources, product & eng, legal, operations and
health . The company's management team includes John Vademore (CFO), Jeremy Saul
(Managing Director - Global Licensing and Strategic Partnerships), and Christopher Coye
(Senior Vice President IT and CIO Senior Vice President IT and CIO).

3.2.1 Advantages of the organizational structure on the interrelationships

This functional organisational chart brings some specific advantages. Skechers' functional
organizational chart enables the company to capitalize on the knowledge and skills of its
employees. For instance, Skechers possesses a specialized marketing department that takes
charge of devising and implementing marketing campaigns. This department possesses the
necessary abilities and expertise to create impactful marketing campaigns that effectively
reach Skechers' intended audience. Besides, Skechers' functional organizational chart serves
the purpose of avoiding redundant efforts. To illustrate, Skechers has a dedicated sales
department that handles the task of selling Skechers products to both retailers and consumers.
This department possesses the essential skills and expertise to successfully market Skechers
products. Skechers' functional organizational chart ensures a clear and streamlined chain of
command.

3.2.2. Disadvantages of the organizational structure on the interrelationships

This functional organizational chart also has some disadvantages. Skechers' utilization of a
functional organizational chart can engender challenges in facilitating effective
communication among distinct departments. Notably, the marketing department may
necessitate effective communication with the sales department to ensure that their marketing
endeavors are duly aligned with the sales team's overarching sales objectives. In the event of
deficient communication between these two departments, significant ramifications, such as
missed sales prospects, may ensue (Barlow, 2023). Moreover, Skechers' adoption of a
functional organizational chart can impede the coordination of efforts between disparate
departments, particularly when engaged in intricate undertakings. By way of illustration, the
marketing and sales departments may have to collaborate in order to successfully launch a
novel product. In cases where coordination between these departments is inadequate, it can
result in complications, such as postponements of the product launch.

3.2.3. Interrelationships between departments of Skechers

Skechers, one of the leading footwear and fashion companies in the United States, also has an
organizational chart that divides work by function to ensure their business operations are
carried out efficiently and effectively. benefit the company. Skechers' main departments
include finance, marketing, research and development (R&D), production and human
resources management.

- Skechers' finance department is responsible for financial management, cost control


and management of the company's financial resources. They help maintain financial
stability for Skechers through budget management, financial projects and financial
reporting.
- Skechers' marketing department develops marketing strategies, branding and product
advertising. Marketing has a major influence on organizational structure by
determining how Skechers interacts with customers, requiring collaboration with
other departments to provide product information and sales support.
- Skechers' research and development (R&D) department is responsible for researching
and developing new products and advanced technologies in the footwear and fashion
industry. R&D has a major influence on organizational structure by shaping the
direction of a company's product development, requiring close collaboration with
other departments such as manufacturing and marketing to ensure that new products
are introduced. to market effectively.
- Skechers' manufacturing department is responsible for creating and manufacturing
products as required. They provide information about production capabilities and
production resources to other departments, helping them plan production effectively.
- Skechers' human resources management department recruits, trains and manages
employees. They provide information about human resources and employee
capabilities to other departments, helping them better understand the strengths and
limitations of their work team.

The relationships between these departments are extremely important to achieving Skechers'
business goals. For example, the marketing department needs to work closely with the R&D
department to understand new products being developed and ensure that the marketing
strategy is appropriate to the product characteristics. The finance department takes on the role
of financial management of the company, including budget management, finance, and
accounting. They need to work with the Marketing department to ensure that marketing
budgets are managed effectively and invested in profitable marketing campaigns. The
Manufacturing Department is responsible for the production of Skechers sports products.
They work closely with the Marketing department to ensure that the products produced meet
the needs of the market. They also provide information about production capabilities to help
the Marketing department determine appropriate marketing strategies.

- The impact of organizational functions on Skechers' organizational structure includes


optimizing operating costs, increasing flexibility and enhancing work performance
through optimization of processes and resource management. force. This helps
Skechers maintain competitiveness and sustainable development in the footwear and
fashion industry.
4. Provide critical analysis of the complexities of different organizations and structures

4.1. Adidas
Adidas employs a matrix organizational chart wherein its employees are organized based on
their function as well as the product or project they are involved in. This particular
organizational structure is frequently adopted by large corporations that offer intricate
products and services, as it facilitates the development of specialized knowledge and
expertise in both domains (Julita, 2023). The advantages of a matrix organizational chart are
that Flexibility and adaptability A matrix organizational chart can be more flexible and
adaptable than a functional organizational chart, as it allows employees to be assigned to
different projects based on their skills and expertise. Furthermore, this organizational chart
encourages communication and collaboration between departments. A matrix organizational
chart can encourage communication and collaboration between departments as employees
from different departments work together on projects (Org chart Friendly, 2023). However,
the functional organizational chart possesses certain drawbacks. A matrix organizational
chart can result in conflict and confusion due to the presence of multiple supervisors and
conflicting priorities among employees. Moreover, the coordination process becomes
challenging in this type of organizational structure. The effective coordination of activities
poses difficulties within a matrix organizational chart as there is a potential for conflicting
resource and employee demands (Gupta, 2023).

4.2. Nike
Nike applies a divisional structure classification, Within this hierarchical framework, power
is decentralized, with divisions established based on geography, product lines, and customer
segments. Each division operates semi-autonomously, led by the respective executive team
responsible for formulating and implementing strategic decisions appropriate to their specific
market focus (Sherman, 2023). Nike's corporate structure emphasizes flexibility and the
ability to respond to diverse market needs, allowing for rapid adaptation to changes in
consumer preferences and market dynamics.

The divisional structure offers several advantages for Nike. First, it promotes specialization
within each department, allowing for deep understanding of local market nuances and
customer preferences. This localized approach enhances market penetration and customer
acquisition, driving competitive advantage (CHARTHOP, 2023). Additionally, by
decentralizing decision-making, Nike can accelerate innovation and product development,
taking advantage of emerging trends and opportunities in different markets.
However, the departmental structure also poses challenges. Coordination and communication
between departments can be complex, potentially leading to redundancy, conflicting
strategies and ineffectiveness. Without centralized control, ensuring alignment with overall
company goals and standards may require coordinated efforts and effective communication
channels (Cuofano, 2023). Furthermore, departments may face resource allocation problems
because competing priorities and resource needs must be balanced throughout the
organization.
Overall, Nike's divisional structure reflects its commitment to market responsiveness and
innovation, allowing the company to maintain a global leadership position in the sportswear
industry.

III. Conclusion

To sum up, my study provides a thorough analysis of the Li-Ning and Skechers firms,
covering a range of business-related topics as well as the external variables that affect their
operations. The organizations' goal, mission, size, legal structure, commercial scope, and
stakeholders in comparison to their rivals are some of these aspects. By means of arguments
and assessments, my objective is to enable the firms to improve their capacity to provide
superior products and services. In addition, my study piece includes a thorough competition
analysis that makes it possible to identify methods that will increase our company's
competitiveness. Additionally, this study offers Li-Ning insights to run a more cohesive and
long-lasting business by looking at the interdepartmental interactions inside the organization.

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All products (no date) That. Available at: https://liningvietnam.com.vn/collections/all (Accessed: 27
March 2024).
AKS Lining Systems Management (no date) rocketreach.co. Available at: https://rocketreach.co/aks-
lining-systems-management_b44b7e1cfcfa1285 (Accessed: 27 March 2024).
Skechers Management (no date) rocketreach.co. Available at: https://rocketreach.co/skechers-
management_b5c62d98f42e0ca7 (Accessed: 27 March 2024).
Org Chart Skechers (no date) The Official Board. Available at: https://www.theofficialboard.com/org-
chart/skechers (Accessed: 27 March 2024).

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