Reebok 2011 Annual Report Download - page 234

adidas Group
2011 Annual Report
ADDITIONAL INFORMATION
230
2011
05.2 Glossary
05.2
G
German Co-Determination Act
Mitbestimmungsgesetz (MitbestG). This act
governs the form of co-determination of
employees in corporations employing more than
2,000 employees. It stipulates, among other things,
that such a corporation’s Supervisory Board must
be composed of an equal number of employee and
shareholder representatives.
Goodwill
Intangible asset that quantifies the price that a
buyer of a company has paid for the reputation,
know-how and market position of the acquired
company. Goodwill is the excess of the amount paid
over the fair value of the net assets acquired at the
purchase date.
Go-to-market
All instruments, tools and channels used to con-
nect with consumers in order to best fulfil their
needs, prior to the launch and/or the commerciali-
sation of a new product.
Grassroots events
Grassroots events involve the advertising and pro-
motion of products and/or services on a local and/
or personal level. A message is shared with a small
group of influencers within a target group. If suc-
cessful, these then spread the marketing message,
e.g. by sharing it on social media platforms or writ-
ing a recommendation.
Green grass retailers
Golf distribution channel. Small golf specialty
shops typically located at a golf course.
Gross Domestic Product (GDP)
Market value of all finished goods and services pro-
duced within a country in a given period of time.
GDP = consumption + investment + government
spending + (exports – imports).
Gross margin
Gross profit as a percentage of net sales.
Gross margin = (gross profit / net sales) × 100.
H
Halo effect
The halo effect refers to the cognitive bias effect
that when we consider something good (or bad)
in one category, we are likely to make a similar
evaluation in other (related) categories.
Hardware
Product category which comprises equipment
that is used rather than worn by the athlete, such
as bags, balls, fitness equipment, golf clubs and
hockey sticks.
Hedging
A strategy used to minimise exposure to changes in
prices, interest rates or exchange rates by means
of derivative financial instruments (options, swaps,
forward contracts, etc.)
SEE ALSO NATURAL HEDGES .
I
Institutional investors
Investors such as investment companies, mutual
funds, brokerages, insurance companies, pension
funds, investment banks and endowment funds.
They are financially sophisticated, with a greater
knowledge of investment vehicles and risks, and
have the means to make large and long-term
investments.
International Financial Reporting
Standards (IFRS)
Reporting standards (formerly called IAS) which
have been issued by the International Accounting
Standards Board (IASB). The objective is to achieve
uniformity and transparency in the accounting
principles that are used by businesses and other
organisations for financial reporting around the
world.
International Labour Organization
The International Labour Organization (ILO) is
a specialised agency of the United Nations that
engages in formulating and implementing in-
ternational social and workplace standards and
guidelines :
WWW.ILO.ORG .
ISO 14001
International Organization for Standardization (ISO)
Standard 14001 specifies the requirements for an
environmental management system within compa-
nies/organisations. It applies to those environmen-
tal aspects over which the organisation has control
and over which it can be expected to have an influ-
ence (e.g. energy and water consumption).
J
Joint venture
A cooperation between companies involving the
foundation of a new, legally independent business
entity in which the founding companies (two or
more companies) participate with equity and sig-
nificant resources.
K
Key accounts
Wholesalers or retailers which are considered to be
primary customers for the Group and account for a
large percentage of sales.
Kinesiology
The scientific study of the mechanisms associated
with human movement.
L
Leather Working Group (LWG)
The Leather Working Group was formed in April
2005 to promote sustainable and appropriate
environmental stewardship practices within the
leather industry :
WWW.LEATHERWORKINGGROUP.COM .
Licensed apparel
Apparel products which are produced and mar-
keted under a licence agreement. The adidas Group
has licence agreements with sports organisations
(e.g. FIFA, UEFA), sports leagues (e.g. NBA, NHL),
teams (e.g. Real Madrid, AC Milan) and universities
(e.g. UCLA, Notre Dame).