University of Maryland football player Kevin Plank

  1. Background
    Founded in 1996 by former University of Maryland football player Kevin Plank, Under Armor was the originator of sports apparel made with performance-enhancing fabrics-gear engineered to wick moisture from the body, regulate body temperature, and enhance comfort
    regardless of weather conditions and activity levels. Under Armour quickly earned a reputation as an up-and-coming company in the sports apparel business, achieving sales of USD$1 billion
    in 2010 and USD$5 billion in 2017.
    Since 2017, revenue growth has slumped, increasing only 5 percent over 2 years. In 2019, the sales revenue was approximately USD$5.25 billion.
    On 30 October 2020, Under Armour announced its financial revenue of USD$1.4 billion as of
    3rd Quarter 2020 review, citing deep COVID 19 impact.
    Gross margin decreased 40 basis points to 47.9 percent compared to the prior year, driven
    primarily by negative impact from COVID-related discounting and product mix that was partially offset by supply chain efficiencies and channel mix.
    Revenue is expected to be down at a high-teen percentage rate compared to 2019 results, reflecting a low twenties percentage rate decline in North America and a high single digit
    percentage decline within the international business. For the fourth quarter, the company now expects revenue to be down at a low-teen percentage rate, versus the previous down 20 to 25
    percent expectation which was impacted by the following factors:
    1) Expected year-end timing impact from COVID-19 due to changes in customer order flow
    and changes in supply chain timing resulting in more planned spring product deliveries in early
    2021 versus late 2020.
    2) An anticipated substantial decline in licensing revenue due to lower contractual royalty minimums and contract settlements realized in the prior year.
    3) Lower planned excess inventory sales to the off-price channel.
  2. Task
    As the new People Analytics Manager in Under Armour Singapore, you believe that a data-driven approach towards human capital management could help the company in the transformation journey and compete in the new business environment. You gather data from a
    2020 customer satisfaction survey to assess how well the organization is doing and how human
    capital impacts business outcomes and competitiveness. With data in hand, develop a report of your findings and recommend a human capital measurement system for the company.
    The report comprises three sections:
    2
    a) Analysis of Customer Satisfaction Survey in 575 words
    In Review the Customer Satisfaction Survey data recently in November 2020 and determine how the company can utilise the information to identify areas for improvement. Substantiate
    your assessments by applying a mixture of descriptive (means, frequencies) and predictive analytics (t-tests, correlations, regression) on the customer satisfaction dataset provided.
    Please refer to the attached dataset is titled ‘Under Armour Customer Survey Dataset’. The
    survey was conducted in 2020 and a representative sample of Under Armour’s customers was
    obtained for the survey to enable more reliable and valid insights in the dataset, a ‘2019 Overall customer satisfaction’ is provided for trend comparison. Assume that the same group of
    respondents were surveyed in 2019 and 2020.
    b) Proposed business outcomes and link Human Capital to Business in 575 words
    (Refer to attached SU2)
    Based on an analysis of the changes in the retail industry, findings from the customer satisfaction survey, vision and values of the company,
    1) Propose a business goal and strategy that Under Armour Singapore should pursue in
    order to survive in the new environment.
    Note: What is important is the relevance of the goal and strategy in dealing with the challenges
    that Under Armour faces in the new normal and the company’s mission and values. Keep it
    simple and stick to one business goal and single competitive strategy.
    2) Apply Fitz-Enz’s Human Capital-to-Enterprise pathway (refer to the figure below) to
    demonstrate how the different departments in Under Armour impact your proposed
    business goals and competitive strategy. (Annex B provides a brief factsheet on Under
    Armour. Refer to Annex B for the departments that you should consider).
    Mapping of the Human Capital-to-Enterprise pathway should be top-down. When mapping
    the Human Capital-to-Enterprise pathway, please focus on demonstrating clear and detailed
    linkages between levels and identify at most two business units that are critical to
    delivering the competitive strategy.
  3. Identify Enterprise Goals of Under Armour
  4. Decide on Business Strategy to reach Enterprise Goals
  5. Identify critical business units; outputs & people needs
  6. Derive HR deliverables
    3) Identify key HR deliverables that should be achieved and monitored.
    3
    Figure 1: Human Capital-to-Enterprise Pathways
    c) Construct a HR Scorecard in 500 words
    Based on the HR deliverables identified in the Human-Capital-to-Enterprise Pathway,
    construct a HR scorecard that will help measure and monitor progress on each HR deliverable
    refer to below for a template of a HR scorecard.
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