Reebok 2012 Annual Report Download - page 274

adidas Group
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2012 Annual Report
Additional Information
252
2012
Glossary
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05.2
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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. It is stated at cost and tested for
impairment annually or on such other occasions
that events or changes in circumstances indicate
that it might be impaired.
Go-to-market
All instruments, tools and channels used to
connect with customers in order to best fulfil
their needs, prior to the launch and/or the
commercialisation of a new product.
Grassroots events
Grassroots events involve the advertising and
promotion 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 successful, these then spread the
marketing message, e.g. by sharing it with others
in person, on social media platforms or writing 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
produced 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.
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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
A product category which comprises equipment
that is used rather than worn by the consumer,
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.)
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SEE ALSO NATURAL
HEDGES.
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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 high
degree of 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
international social and workplace standards and
guidelines :
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WWW.ILO.ORG.
ISO 14001
International Organization for Standardization
(ISO) Standard 14001 specifies the requirements
for an environmental management system within
companies and organisations. It applies to those
environmental aspects over which the organisation
has control and over which it can be expected
to have an influence (e.g. energy and water
consumption).
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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
significant resources.
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K
Key accounts
Wholesalers or retailers which are considered to
be primary customers for the adidas Group and
account for a large percentage of sales.
Kinesiology
The scientific study of the mechanisms associated
with human movement.
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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 :
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WWW.LEATHERWORKINGGROUP.
COM.
Licensed apparel
Apparel products which are produced and
marketed under a licence agreement. The adidas
Group has licence agreements with several
associations (e.g. FIFA, UEFA), leagues (e.g. NBA,
NHL), teams (e.g. Real Madrid, AC Milan) and
universities (e.g. UCLA, Notre Dame).