Under Armour And International Expansion Marketing Essay

This is an analysis of Under Armour Inc instance survey in its potency to do selling schemes of spread outing its market in foreign states. The considerations have been based on Mexico and Argentina. The case in point attempts produced have outlined chances and hazards associated with each state in a assortment of countries, including issues related to international trade, methods, of entry, substructure considerations, and others. In this recommendation, I introduce the constructs aimed at presenting a concluding mark state for the company ‘s enlargement proposal. In consideration to the assorted exceeding issues, including important human resource issues, it was can be determined that Mexico represents the best location for Under Armour ‘s enlargement. Several entry vehicles have been discussed and compared, at which clip outsourcing and off shoring were deemed as the most appropriate methods in its initial attempts in Mexico. After agring on a mark state, several facets of the organisation were examined that can assist its planetary development. Under Armour ‘s concern theoretical account is analyzed for possible defects in the planetary context, and recommendations are made to heighten the company ‘s ability to efficaciously make concern overseas. Furthermore the house ‘s fiscal public presentation is outlined and found to be rather successful ; with careful execution, this tendency is expected to go on on an international degree. Issues sing sustainable concern enterprises and planetary mentality positions were besides addressed, with the agreement being that Under Armour ‘s advancement in these countries offers a promising footing for future growing.


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Team Univision has researched and analyzed possible globalisation attempts by Under Armour into Argentina and Mexico in a figure of undertakings to day of the month. Based on the informations obtained therefore far, it is apparent that Mexico presents the best chance for growing and net income in Under Armour ‘s globalisation scheme. This requires a concern theoretical account that accommodates globalisation and factors in hazards and chances when spread outing in a planetary market. This instance survey will turn to these issues and present Under Armour ‘s principle for come ining into the Mexican market.

Comparative Analysis

The undermentioned comparative analysis is a point-by-point comparing of Argentina and Mexico in respects to the issues rose in hebdomads 4, 9, and 11. These issues include tariff barriers, merchandise criterions, and challenge declaration processes ; licensing, franchising, and outsourcing/off shoring enterprises ; and eventually substructure, concern and work force civilization, societal substructure, and political and regulative environments.

International trade

In hebdomad 4, Team Univision focused on countries of international trade that could help or hinder Under Armour ‘s possible enlargement into Argentina and Mexico. Unlike Argentina, duty barriers are a comparative non-factor in Mexico because of the aid NAFTA provides for transit of stuffs and merchandises between it and the United States. While merchandise criterions mirror those of the U.S. in both Mexico and Argentina, competition and affordability is more of an obstruction in Argentina. Finally, legal enforcement is uneven and corruptness is a possible booby trap for both states. Corruptness in Argentina though has been known to more markedly affect foreign companies, therefore conveying many differences to international arbitration.

Potential entry manners

In hebdomad 9, the focal point was centered on the possible entry manners of Under Armour Inc. ‘s enlargement. While the construct of licencing offers a major top in its cost effectivity, Team Univision found that economic uncertainness in Argentina and widespread buccaneering in Mexico offered significant hazard. Franchising was found to be unpractical for Argentina due to the fact the Under Armour is more logo-

Driven and sold in unaffiliated retail shops. Conversely, franchising may be a feasible option to research in Mexico as Torahs have late been enacted that heighten the rights of franchisees and the parent company. Finally, outsourcing and off shoring were found to be really feasible options for both states but more so for Mexico, in that Under Armour already offshore the bulk of its natural stuffs sourcing and fabricating capableness to this country.

Infrastructure issues

In hebdomad 11, economic and societal substructure, concern and work force civilization, and political and regulative environments were examined in item. Infrastructure in Mexico rates extremely due to its ability to turn to Under Armour ‘s transit concerns. In contrast, Argentina ‘s substructure is questionable due to major economic uncertainness. Both states ‘ societal substructures are missing with regard to the local concern and work force civilizations. Labor brotherhoods are a serious concern in both states, but possibly more so in Argentina than Mexico. Conversely, hapless instruction degrees are a job in Mexico whereas Argentina ‘s high instruction degrees are more likely to supply a skilled work force. Finally, the political and regulative systems of both states pose a job as each carries the built-in hazards of corruptness, instability, and trouble in implementing belongings rights.

Traveling frontward

With this information in head, Team Univision must find non merely which state has the most resources to back up enlargement, but besides which state has the least sum of overall hazard. Business determinations inherently involve hazard, to be certain, but successful concern determinations are able to equilibrate these hazards with important wages.

Rationale for Under Armour

Mexico has issues with offense and environmental factors which exacerbate the wellness of its citizens and those making concern in the state. Though Mexico boasts a literacy rate of 93 % , instruction is non given the high precedence needed if the state expects to diversify its fabrication and service offerings to an spread outing planetary market ( CIA, 2007 ) . Despite these defects, other factors make Mexico a feasible pick for Under Armour. Among these are propinquity which helps cut down transit costs, long-standing benefits of the NAFTA agreement, Export Processing Zones ( EPZs ) which facilitate trade, compatible merchandise criterions ; and similar judicial systems. Team Univision has highlighted important chances and hazards considered in its recommendation for Under Armour ‘s enlargement into Mexico ‘s retail market.

Political system

Felipe Calderon ‘s combative acclivity to the presidential term has meant edifice Bridgess in Congress to force through his reform docket. Acknowledging the potency for the state ‘s societal jobs to hinder Mexico ‘s economic growing, President Calderon ‘s 2007 budget reflects a committedness to contending poorness, making occupations, and guaranting the personal safety of its citizens ( EIU, 2007 ) . Therefore while the short-run political hazards in Mexico are existent, the mentality for Under Armour ‘s long-run success seems positive.

Business clime

Mexico ‘s concern clime is fraught with hapless revenue enhancement aggregation capablenesss, corruptness, and bureaucratic inefficiencies that impose non-tariff trade barriers. Mexico recognizes the impact on its fight and has worked to cut down such barriers through statute law. For houses like Under Armour, Export Processing Zones ( EPZs ) help them voyage the state ‘s cumbrous regulative environment and support outsourcing and off shoring demands at lower costs. Mexico ‘s legal system is characterized as being “ really broad ” in the country of contract jurisprudence. This is an of import consideration for Under Armour ‘s ability to negociate contracts or arbitrate differences. There are concerns with companies utilizing child labour and possible reforms in labour Torahs which may harm multinationals. Labor brotherhoods besides impose bounds on the grade of control direction has over worker activities and behaviour. Team Univision believes that Under Armour ‘s planetary labour criterions are sufficiently robust in that they expressly prohibit the house from prosecuting with providers that exploit kids and others in the work force.

Human resource direction

Mexico can be described as holding a collectivized civilization. Collectivist civilizations prosecute “ harmonious mutuality ” instead than single self-interest ( Griffith, 2002, p. 305 ) . In contrast, Western states and particularly the United States place a high value on single public presentation ( Hill, 2007 ) . In Mexico, hiring patterns are governed by nepotism and familial ties. As such, they may probably interfere with public presentation direction patterns. These factors would impact Under Armour if the house decided to spread out its operations through a Greenfield venture. Given that significant spendings are required for this attack, Team Univision encourages Under Armour to optimise its off shore and outsourcing options while continuing its fiscal resources.

Outsourcing/off shoring

Continuing to seek off shoring and outsourcing chances provides the flexibleness which would enable Under Armour to concentrate on nucleus competences, such as merchandise invention and strategic direction. Under Armour would profit from entree to lower-cost labour pools ; decrease in unit costs through increased production ; increased value of providers through added functionality ; and decrease in costs for human resource sourcing, preparation, and expiration. Under Armour will go on to use strict conformity and supervising systems to guarantee that its quality criterions are maintained in the workplace and for its merchandises.


Under Armour ‘s current licensing scheme provides cost effectual chances to increase trade name consciousness. Under its licensing understandings for fabrication and distribution, Under Armour minimizes its fiscal spendings while costs for bring forthing, distributing, and marketing its merchandises are assumed by the licensee. Protecting its hallmarks is of critical importance to Under Armour. In Mexico, enforcement of rational belongings rights Torahs is highly weak, while demand for imitative ware is strong. For these grounds, Team Univision has determined that licencing would expose Under Armour to merchandise buccaneering hazard and the subsequent losingss of gross, and is hence non recommended.


Under Armour would be able to increase its trade name consciousness in the new retail market while recognizing legion economic benefits through franchising. Under this agreement, Under Armour would derive an extra gross watercourse, minimise its spendings for bring forthing, packaging, distributing, and marketing its merchandises in the new market, increase flexibleness of its supply concatenation through extra capacity ; and better the house ‘s sourcing of critical petroleum-based stuff used in its forte public presentation cloths. As a franchisor, Under Armour would retain sufficient control over merchandise criterions and presentation.

Intellectual belongings

Team Univision acknowledges that misdemeanors of hallmarks and merchandise design are hazards posed by licensing, outsourcing, away shoring, and franchising as market entry schemes. These hazards should non, nevertheless, deter Under Armour from sing Mexico as a mark for globalisation. Under Armour ‘s robust seller choice and monitoring patterns, in concurrence with penal codification alterations prefering higher punishments for rational belongings misdemeanors should extenuate important losingss for the house.

State Recommendation

Globalization has become the focal point for many corporations trying to spread out their presence and merchandises into the international economic system. Team Univision has analyzed Under Armour as it attempts to distribute its operations into foreign markets. Specifically, the foreign markets analyzed during this comprehensive survey were Argentina and Mexico. As Team Univision ‘s apprehension of globalisation

Increased exponentially throughout the term, it is now clip to urge which state is best suited for Under Armour Inc. , and which market entry vehicle the house should use in the preferable state. Through careful consideration, and persevering analysis of both states, Team Univision came to the decision that Mexico would be the best option for Under Armour Inc. In the undermentioned transitions, Team Univision will explicate how we concluded on Mexico as the best state pick, and which market entry vehicle the company will profit from the most.

Why Mexico?

The determination by Team Univision to propose Mexico as the best option for Under Armour Inc. globalisation enterprise was non a peculiarly difficult pick to do. Although there are many appealing facets in a possible enlargement into the Argentinean market, there are merely excessively many possible hazards associated with the move. For case, Argentina is still retrieving from a complete economic prostration that occurred in 2002. Although the state seems to be bettering drastically, there is still a immense trade of uncertainness and instability – and hence increased hazards for Under Armour. Couple an economic system retrieving from a recession, political instability, and a questionable legislative system and the likeliness for possible failure additions exponentially for any foreign house come ining the Argentinean market. Although there are some built-in hazards in Mexico as with any foreign market, the opportunity for success is greater. The fact that Under Armour Inc. is based in the U.S. and Mexico is a member of the North American Free Trade Agreement ( NAFTA ) farther validates this decision. The choice of a mark state for Under Armour ‘s enlargement, though, is merely half of the equation. Now that Team Univision decided on Mexico as the best tantrum, Team Univision must find which market entry vehicle to use.

Market entry vehicles

Team Univision has analyzed three possible manners of entry for Under Armour Inc. into the Mexican market. Team Univision decided to see each manner and determine which was most appropriate, with the possibility of using more than one entry vehicle if necessary. The three entry vehicles examined are licencing, franchising, and outsourcing. Licensing is an entry vehicle that Under Armour has utilized in the yesteryear and programs to use in the hereafter, as these agreements have been really moneymaking for the company. Most of Under Armour ‘s licensing understandings encompass fabrication and distribution rights. However, in 2006, the company broke new land by licencing package for its warehouse direction system

Franchising is another option Team Univision has analyzed as an entry vehicle for Under Armour into Mexico. Franchising is already a prevailing manner of entry into the Mexican market: In Mexico there are presently a sum of 780 franchises registered in more than 70 different sectors, turn outing that the franchise concern is an of import beginning of occupation creative activity, self-employment and wealth strengthened considerable in the past few old ages, positioning Mexico as the 8th prima state worldwide in franchise development. After the coming of NAFTA, franchising has become one of the most popular concern theoretical accounts to follow in Mexico because it has proven to be stable and has consistent growing chances. Besides, Mexico has besides shown an unfastened commercial system and a assorted cultural background that promotes credence of different constructs ( BuyUSA, 2007 ) . The last entry vehicle analyzed by Team Univision is outsourcing. As with any company or corporation, the end is to increase net incomes while cut down hazards and costs. For a house such as Under Armour, and a state such as Mexico that is a member of NAFTA, trade barriers have been eliminated and the part has thereby encouraged outsourcing. Since many of the natural stuffs used by Under Armour come from Mexico, and the labour is much cheaper while being in close propinquity with the U.S. , outsourcing to Mexico is an obvious option. As stated earlier, Team Univision views each entry vehicle as a feasible conduit into the Mexican market. However, it is obvious through research and analysis that outsourcing may be the best starting point for the company ‘s globalisation efforts.

Summary of recommendations

Team Univision has researched, analyzed, discussed, and contemplated globalisation and the chances and hazards that it posed for Under Armour Inc. Through intelligent deliberation and teamwork, it was determined that Mexico was genuinely the better mark state. Furthermore, it seems that a combination of off shoring/outsourcing and franchising is likely the best initial entry vehicle for Under Armour. This determination was non an easy one, but in concern each determination must be an informed one so as to cut down the hazards built-in to foreign market enterprises.

Business Model for Under Armour

Modern concerns rely more than of all time on solid concern theoretical accounts in order to stay solvent in today ‘s segmented and competitory environment. As Team Univision examines Under Armour and its possible enlargement overseas, its concern theoretical account must undergo examination to better understand its value. In the text below we will foremost specify Under Armour ‘s current concern theoretical account, and so measure its pertinence in the context of globalisation.

Mission of Under Armour

Under Armour defines a concern theoretical account as the manner, or ways, in which a company generates gross and net income ( UA, 2007b ) . Using this definition, we can state that Under Armour ‘s concern theoretical account revolves around the design, production, selling, and distribution of hi-tech athletic public presentation dress to work forces, adult females, and young person ( UA, 2007a ) . The company focuses most of its attempts on the production of dress for football, although it has made great paces in other athleticss ; baseball, lacrosse, Olympic athleticss and association football are but a few of the company ‘s recent marks ( Kusterbeck, 2007 ) . Under Armour ‘s concern theoretical account is alone in that the company builds its gross revenues attempts in an about grassroots-type manner, wherein merchandises are pushed out to athleticss professionals foremost with the purpose that the tendency is trickled down to the consumer multitudes ( Kusterbeck, 2007 ) .

Business theoretical account for operations

Under Armour ‘s concern theoretical account revolves around the production of public presentation dress, but this is merely one of many elements in the greater organisational program. The company continues to run much like a smaller and centralized growing company ; for illustration, the company maintains all of its design and advertisement maps in-house in an attempt to keep quality and consistence in its merchandises and selling messages ( UA, 2007a ) . These designs are so tested by professional jocks to earn constructive feedback for merchandise betterments ; the company refers to these Sessionss as “ cabinet room research labs ” ( Kusterbeck, 2007 ) . Under Armour besides maintains control over its distribution channel by trusting on its installation in Glen Burnie, MD for well all of its merchandise distribution demands ( UA, 2007a ) . Though Under Armour chooses to maintain many of its maps in-house, the company has outsourced much of its natural stuffs sourcing and fabricating to foreign entities. The bulk of these installations are located in Mexico, Latin America, and China, although the company does staff a quick-turn fabrication component in-house for particular orders and clients. Under Armour reaches consumers chiefly through “ shop within a shop ” apparatuss within major sweeping ironss like Dick ‘s and The Sports Authority ; fewer than a twelve Under Armour mercantile establishment stores are run by the company itself. Finally, the company earns gross and broadens its trade name image through licencing understandings with collegiate and professional athleticss squads, persons, and plans – an attempt borne out of the company ‘s theoretical account for legitimacy, repute, and quality ( UA, 2007a ) .

Under Armour and international enlargement

Potential concern theoretical account issues.

Under Armour ‘s current scheme has been successful, but is mostly contained within the context of the US public presentation dress market. The company has negotiated licencing understandings in Japan, and has established a European central office to present its merchandises in the same manner it did in the US: merchandising merchandises straight to squads and single jocks in these markets, thereby supplying merchandise exposure to wide audiences of possible consumers in these markets. This theoretical account has therefore far been effectual, with 4 % of the company ‘s cyberspace grosss now coming from international gross revenues and licensing understandings ( UA, 2007a ) . The current concern theoretical account, though, suffers from some restrictions that may suppress the company ‘s ability to spread out internationally. First, its sale of higher-priced athletic dress is merely feasible in locations that support discretional disbursement and leisure clip. This is typically the instance in developed states, but Under Armour ‘s merchandises may non be successful in developing states with low income- per-capita figures and a deficiency of accent on leisure clip. Under Armour ‘s trust on football ( and its associated seasonality ) may smother the company ‘s ability to travel efficaciously overseas, as American football has limited worldwide entreaty. Furthermore, Under Armour is merely now interrupting into international athleticss ( association football and cricket being two illustrations ) , so its US concern theoretical account must be rapidly modified to appeal to planetary clients. Finally, the company could confront extra seasonality issues if these international athleticss coincide with football season in America, therefore farther increasing the company ‘s fiscal hazard. On a broader graduated table, the company ‘s concern theoretical account calls for guerilla-style distribution and selling schemes centered on professional and collegial jocks. This attack merely works, of class, in locations where the appropriate athleticss substructures exist. If a state or part deficiencies important professional athleticss, or even clean activities at the collegial degree equivalent to US schools, so Under Armour will confront challenges with respect to merchandise debuts and consumer credence. Firms like Under Armour face even more challenges on the operational degree. During the growing stage, companies will frequently go on to keep centralised control over cardinal operational maps. Under Armour to this point operates most of its design, selling, and distribution maps from its central offices in Baltimore, MD ( UA, 2007a ) . While this is an effectual scheme in the short term, the company will hold to set up regional planetary centres of operations in order to stay competitory. Logistic challenges such as stock list direction, transit, and supply concatenation direction will turn progressively complicated upon international enlargement. Finally, Under Armour ‘s concern theoretical account may hold to be adjusted with regard to retail scheme. On the design terminal, the company must farther distinguish its merchandises to better suit tastes in assorted planetary locations ; a speedy perusing of Under Armour ‘s international web sites portrays small international distinction ( UA, 2007c ) . With regard to retail infinite, the company presently operates under a theoretical account that relies to a great extent on sweeping distribution with more than 36 % of its cyberspace grosss coming from merely two retail giants ( Just Style, 2006 ) . This scheme may turn out debatable in countries that do n’t back up big retail ventures, or in locations where trade name acknowledgment is low. In such a scenario, Under Armour ‘s merchandises could easy go lost amongst the myriad trade names sold in these retail merchants.

Recommendations for concern theoretical account sweetenings.

From a practical position, there are many alterations that Under Armour could implement to better place its concern theoretical account for international success. First, it must research ways to make lower-priced, multi-purpose dress that maintains its trade name image yet caters to geographically distinct gustatory sensations or socio-economic conditions. Second, it must set up itself at the head of international athleticss to cut down its trust on US-centric athleticss such as football or baseball ; the hiring of local experts might be helpful here to confer with on designs and so forth. Following, the company must analyze distribution and supply ironss on a planetary degree to develop efficient webs for transporting and selling its merchandises. New retail formats, franchising understandings, and licencing options must besides be considered as portion of this scheme. Under Armour ‘s concern theoretical account extends to its corporate political orientation, and this excessively could alter to better suit international enlargement chances. The company must travel beyond its “ disruptor ” outlook and set up a mainstream planetary presence. It must besides look to deconcentrate some of its nucleus maps to let for better operational efficiencies in geographically disparate locations. Finally, the company must transition its concern theoretical account from that of a little, flexible, dynamic company into a larger, more mature, and more stable outlook – all while keeping the client service, credibleness, and invention that represent its nucleus competences.

Fiscal Performance for Under Armour

Under Armour has risen to the top of the industry battalion since its 1995 entryway into the featuring goods market, touting more than 90 % of the compaction garment market ( Hoovers, 2007 ) . From 2003 to 2006 the organisation experienced over 500 % growings in net income over the four-year period. This drastic growing is a consequence of new merchandise offerings in the Men ‘s class in 2004 every bit good as the gross revenues growing of the nucleus merchandises. In add-on, the Women ‘s and Youth class introduced new merchandises and tangentially increased gross revenues of bing merchandise offerings. In all, “ the betterment in gross revenues reflects purchase on increased volume, improved sourcing, disciplined stock list direction, and increased licence gross ” ( www.investor @ underarmour.com ) . The gross revenues growing “ coupled with a really disciplined attack to running the concern, enabled the organisation to accomplish strong operating borders while doing of import investings into the hereafter of the organisation ” The company ‘s attempts in making a niche trade name image have fostered strong demand for its public presentation dress. Due to Under Armour ‘s competitory scheme they have become one of the official providers to Major League Baseball ( MLB ) and the National Hockey League ( NHL ) . Under Armour ‘s attempts to spread out into Mexico have strong potency for success due to the growing and net incomes that the organisation has sustained? Under Armour has had enormous success in Canada, Japan, the United Kingdom, France and Germany, therefore proposing a great chance for enlargement in Mexico. However, it is of import for Under Armour to see that there are accommodations that need to be made in order for a successful globalisation attempt. Exchange rates will hold a major impact on Under Armour as we consider globalization attempts to Mexico. Exchange rates affect “ export chances, the profitableness of international trade and investing trades, and the monetary value fight of foreign imports ” ( Hill, 2007, p.345 ) . All of these factors have a major impact on how planetary concern ventures will be conducted, therefore making a demand for Team Univision to hold an apprehension of foreign exchange hazard. It is of import to understand that exchange rates are determined by the demand and supply of currency in relation to another. There is a demand to understand how monetary values are related to interchange rate motions. The bulk of economic theories of exchange rate motions seem to hold that three factors have an of import impact on future exchange rate motions in state ‘s currency: the state ‘s monetary value rising prices, its involvement rate, and market psychological science.

Another economic theory of exchange, buying power para ( PPP ) , “ could be found from any single set of monetary values. By comparing the monetary values of indistinguishable merchandises in different currencies, it would be possible to find the ‘real ‘ or PPP exchange rate that would be if markets are efficient ” ( Hill, 2007, p.345 ) . This provides a benchmark for Under Armour to compare rates and to understand how they are comparative to each other in different states and how to monetary value their merchandise in Mexico to be competitory every bit good as profitable. It is relevant for Team Univision to foretell and calculate future exchange rate fluctuations in order to measure the value of globalisation attempts to Mexico. Therefore, it may profit Under Armour to seek prediction services to go on to measure the profitableness of this market. In add-on, Under Armour ‘s globalisation attempts to Mexico will necessitate to expect consumer penchants in the planetary market in order to keep or increase profitableness. This may necessitate some accommodations of the concern theoretical account ( as described above ) and an intensive scrutiny of Mexican tendencies in the purchase of featuring dress. It is every bit of import to turn to exchange rates and adjust net income criterions and ends because this will hold a major impact on how to calculate and foretell tendencies in the Mexican market. If Under Armour histories for these factors and addresses them suitably, the likeliness of positive returns in Mexico is rather high.

Sustainable Business Lessons

From developing micro-enterprises for adult females in India to supplying drinkable H2O in Ghana, human dynamo corporations such as Unilever and General Electric are integrating environmentally friendly and socially responsible patterns into their concern theoretical accounts. CEOs at these companies recognize that such patterns provide more value than merely favourable PR ( BusinessWeek, 2007 ) . Unilever understands that its endurance depends in portion on its net incomes, but progressively is being linked to other factors including the corporation ‘s function as a good corporate citizen in different parts of the universe. Approximately 40 % of Unilever ‘s gross revenues and future growing will be in developing planetary markets ( 2007 ) . Unilever extends its huge economic resources to assist better life conditions and supply economic chances for citizens in states where it conducts concern. A company ‘s sustainable concern patterns must back up stockholder demands for acceptable rates of return ; the development of advanced merchandises and services ; optimise human resources of its work force ; uphold the unity of the organisation through crystalline administration ; and increase trade name consciousness ( SAM Indexes GmbH, 2006a ) . The Dow Jones Sustainability Index ( SAM Indexes GmbH,

2006b ) considers several properties within economic, environmental, societal, and other industry-specific factors when measuring companies for investing determinations ( 2006b ) . How does Under Armour menu utilizing the Dow Jones Industrial Average Sustainability Index? Within the context of economic dimensions, the sustainability study ( SAM Indexes GmbH, 2006c ) addresses organisation construction and administration, hazard and crisis direction, and codifications of behavior. The societal dimension references human resource development, labour patterns, and philanthropic gift. Last, environmental factors address resource ingestion and emanations and describing. In add-on to its fiscal studies, Under Armour ‘s web site contains information which addresses many of the demands for sustainable concern patterns. Key among this is the company ‘s ain corporate Code of Business Ethics and the Code of Conduct for Suppliers, the organisation of the house ‘s Board of Directors, its philanthropic activities, and planetary labour criterions.

Under Armour, Inc. and the Global Mindset

The planetary mentality encompasses features that are non merely important on a managerial degree, but an organisational degree every bit good. Team Univision examines Under Armour, Inc. as it prepares for entryway in passage by re-examining its planetary mission. For Under Armour, Inc. the cultivation of this mentality could intend the difference between failure and success. A planetary mentality is “ an orientation of the universe that allows one to see certain things that others do non. A planetary mentality means the ability to scan the universe from a wide position ever looking for unexpected tendencies and chances that may represent a menace or an chance to accomplish personal, professional or organisational aims ” ( Kedia & A ; Mukherji, 1999 ) . With planetary concern experience in 10 states, Under Armour, Inc. has embraced this mentality and redefined it based upon their mission and ends.

Global Directors

Team Univision has recognized that in the planetary concern atmosphere, the direction mentality must switch from individualised attempt to that of squads and groups. Creativity and invention coupled with the ability to accommodate to foreign civilizations and values becomes paramount in the planetary context. Other indispensable managerial accomplishments include the ability to modify one ‘s leading manner and possessing the willingness to take hazards in the face of a competitory international environment. Basically, there must be a reorganisation of the manner directors think to to the full encompass the alteration that needs to happen. Chief among Under Armour ‘s considerations here should be an scrutiny of concern moralss. Under Armour, Inc. soon has an extended morals policy in topographic point, but it fails to embrace many of the cultural and environmental facets of moralss that the organisation ‘s direction will confront. The policy does province that all ethical state of affairss and quandaries are n’t mentioned, so unanticipated fortunes will probably be dealt with in a proactive mode. As the organisation moves into another planetary market, Team Univision believes that it ‘s imperative that Under Armour, Inc. include elaborate information sing the ethical issues in each peculiar state. It is n’t sufficient to province that directors must adhere to ethical policies and non prosecute in any concern that promotes or actively possesses unethical parametric quantities. Team Univision feels that the Under Armour ‘s moralss policy should be adapted to the specific conditions of single states, as the concern environment in each of Under Armour ‘s planetary markets is different. This will therefore enable planetary directors to be prepared for likely complications in a given market, and supply clip for a full apprehension of the actions necessary to keep ethical concern operations. The managerial mentality of those within Under Armour, Inc. as they embark on this planetary concern venture in Mexico should be that of an planimeter. “ The planimeter is a director with a existent

Global mentality based on heightened consciousness ( cognition ) and enhanced abilities ( accomplishments ) . They hold a multi-cultural position and creates a universe broad web of relationships with providers, developers, interior decorators, distributers and clients ” ( Kedia & A ; Mukherji, 1999 ) . There are some things on this degree that Under Armour, Inc. presently does, but betterments in this country will ease continued planetary success. Overall, Team Univision feels that Under Armour, Inc. has created a great foundation for planetary integrating and concern. The company has already demonstrated its art in carry oning profitable, ethical, and globally-focused concern operations. Under Armour has been successful in come ining other planetary markets, and Mexico should turn out to be no exclusion.


For Under Armour, Mexico provides a feasible planetary market option that is non without its hazards. However, as a planetary concern and possessing a progressive planetary mentality, Under Armour is prepared to come in this market and thrive off of its ability to accommodate and incorporate its organisational manner. Team Univision is confident that given a elaborate program of action, Under Armour will go the preferable athletic dress trade name in Mexico.

Lessons from the instance survey

Team Univision has scrutinized many of the constructs associated with globalisation along with the possible hazards and chances built-in with such an enterprise. The lessons we learned runing from sustainability to concern theoretical accounts to fiscal public presentation have paid dividends in assisting Team Univision understand what a planetary mentality entails. By heightening this cognition of the planetary mentality, we were able to find the best state and most suited market entry vehicle for Under Armour Inc. The lessons were disputing, the work demanding, but Team Univision was able to draw everything together and work as one cohesive unit. Many of the lessons we have learned decidedly can and will be applicable as we continue to come on in our concern ventures to the Mexican athletic dress market.

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