I need assistance with developing a Balance Sheet and Income Statement for Under Armour. Included I must be able to identify the Internal Factors (IFE) for Under Armour. There is a site such as msnmoneycentral to assist with finding the industry averages.

What are the internal factors from the discussion about Under Armours management, marketing, finance (from analysis above), production & operations, technology, etc.The Internal Factors should be placed in an excel table that has strengths and Weaknesses of Under Armour.

How do IWeight each factor based on how importance they are to Under Armour - all weights add to 1.0

Case 21: Under Armour, Inc.2018

Under Armour (UA) was founded in 1996 by a former University of Maryland football player (CEO Kevin Plank) who desired a t-shirt that would wick away perspiration rather than get soggy wet. At age 23, Kevin Plank developed a new t-shirt in his grandmother's basement in Washington, D.C. after noticing that his compression shorts always stayed dry, but t-shirts had to be changed frequently as they became sweat-soaked. This observation led Plank to new compression t-shirt that wicked away sweat. After graduating, Plank provided this t-shirt to his former teammates who were playing in the NFL. After positive reviews, UA had t-shirt orders totaling $100,000 in 1997. UA's first big break came whenUSA Todaypictured Oakland Raiders quarterback Jeff George wearing UA apparel. In late 1997, Georgia Tech asked for 10 shirts, ultimately leading to deals with Georgia Tech, Arizona State, and North Carolina State universities.

The company has grown to be one of the most sought-after brands among athletes around the world, being worn by some of the largest American college football and European soccer teams. Colleges such as the Maryland Terrapins, Auburn Tigers, South Carolina Gamecocks, and many more have contracts with UA to outfit their teams. English soccer team Tottenham Hotspur, Greek team Aris, F.C., and Mexican club Deportivo Toluca F.C. all are outfitted by UA. Megastars such as Tom Brady, Cam Newton, Bryce Harper, Michael Phelps, and many more, all sponsor and market UA products.

UA designs, develops, markets, and distributes apparel, footwear, and accessories for men, women, and children worldwide. The company offers apparel in three styles: compression, fitted, and loose, and is designed to be worn in hot, cold, or normal weather. Footwear products include cleats for most all sports, running and basketball shoes, and even hunting boots. Accessories include gloves for football, baseball, golf, socks, and team uniforms. UA's moisture-wicking fabrications are engineered in many different designs and styles for wear in nearly every climate to provide a performance alternative to traditional products. Its products are sold worldwide and worn by athletes at all levels, from youth to professional, on playing fields around the globe. UA's European headquarters are in Amsterdam's Olympic Stadium, with additional offices in Denver, Hong Kong, Toronto, and Guangzhou, China. With about 76,000 employees, UA distributes their products through specialty retailers, department stores, outlet stores, and institutional athletic departments.

In the 2000s, UA expanded rapidly after outfitting Warner Brothers with apparel for two films, and an advertisement placed inESPN Magazinegenerated $750,000 in sales. In 2003, UA became the outfitter of the now defunct XFL football league and launched its first TV advertisement with the motto "Protect this House." In 2011, the company purchased 400,000 square feet of office space for $60.5 million. UA has new contracts with the NFL, NBA, and MLB to produce footwear, apparel, and accessories. Many European football teams such as Tottenham Hotspur and other rugby teams are outfitted with UA products. In 2012, UA's women's apparel became a major focus with strong sells reported in the company's Studio and ArmourBra products.

Internal Issues

Organizational Structure

UA reports its finances under four geographic segments: (1) North America, (2) Europe, the Middle East and Africa ("EMEA"), (3) Asia, and (4) Latin America. However, based on titles of executives, it appears UA operates from a divisional-by-region type structure with one person (Jason LaRose) handling North America and one person (Colin Browne) handling outside-North America.

UA's co-founder Kip Fulks announced in October 2017 he was taking a sabbatical. Also disturbing to investors is that UA's footwear chief, head of women's and kids' apparel, and its chief marketing officer also announced they were leaving after the company reported weak Q3 2017 results. UA is in some disarray and has hired Patrik Frisk, the former CEO of shoe retailer Aldo, as president and chief operating officer. Before that hire, Plank also served as president. Analysts have said the move is a sign that Under Armour realizes it needs some fresh blood to fix its many problems at home. On a positive note, UA's leading endorser, Steph Curry of the Golden State Warriors just led his NBA team to defeat the Cleveland Cavaliers to win the NBA championship. Note inExhibit1above that all eleven top executives are male.

Current Strategies

Similar to Nike, UA's strategies largely focus on product development followed by heavy marketing. UA has contracts with many top professional leagues including the NBA and NFL. UA will become a Connected Fitness partner with major league baseball (MLB) starting in 2020. Connected Fitness offers digital fitness subscriptions to consumers through MapMyFitness platform and the UA Record platform. UA acquired both Endomondo and MyFitnessPal platforms which includes MapMyRun and MapMyRide. As of 2017, about 2 percent of revenues were derived from Connected Fitness, but the platform keeps data on customers, exposes customers to UA, and allows users to be rewarded with discounted UA gear for using the apps and staying fit.

Marketing

UA develops and markets products primarily for use in athletics, fitness, and other outdoor activities. UA attempts to drive demand through brand equity and increasing consumer awareness of their superior product. UA growth is largely dependent on sales from Dick's Sporting Goods (Dick's) and Foot Locker, with which it has developed store-within-a-store sales channels. However, UA has been making great strides selling its products directly to consumers, with 31 percent of revenue in the latest quarter coming from direct sales, up from 25 percent 6years earlier. Wholesale sales to retail companies such as Dick's Sporting Goods account for 65 percent of sales, with 4 percent of sales being derived from Connected Fitness and Licensing in fiscal 2016.

Like Nike, UA pays big money to secure endorsements for their products from high performing athletes who have significant influence in the NFL, NBA, MLB, and even high school teams. Sports stars such as Cam Newton and Tom Brady endorse and wear UA products. Many fans become familiar with UA products seeing them worn by high performing athletes on a year-round basis. In addition to focusing on the large market leagues, UA also focuses on brand authenticity from a more grassroots level by hosting camps, clinics, and other activities for young athletes.

UA uses broadcast, print, and social media outlets to promote the firm's product. UA also also owns 162 outlet stores and 19 brand house stores in North America. Plank and his team are excellent marketers; company ads resonate with athletes and those who aspire to become athletes. UA's bold logo and brash and edgy marketing campaigns inspire movement and physical fitness, positioning the company well within the healthier lifestyle megatrend. Plank and his team relish their underdog image versus big rival firms; they love to operate within and promote an "us versus them" philosophy. This competitive fire has served UA well and has encapsulated many athletes and fans.

Seasonality

UA generates a large portion of its revenue during the third (Q3) and fourth (Q4) quarters of each year. In fact, Q3 and Q4 account for 35 percent more revenues than Q1 and Q2, and account for about 58 percent of yearly revenues. Q3 and Q4 correspond to football season and the holiday and winter seasons in much of the world. Fall and cooler weather gear also cost more.

Finance

UA reported a 3 percent increase in revenues in 2017, but notice inExhibit2a large drop in net income from $256 million to negative $48 million, mostly attributed to higher operatingexpenses and cost of goods sold. About 50 percent of UA's cash and equivalents on the balance sheet are located outside the United States. UA's balance sheets are provided inExhibit3; note that property plant and equipment increased 10 percent in 2017.

UA's co-founder Kip Fulks announced in October 2017 he was taking a sabbatical. Also disturbing to investors is that UA's footwear chief, head of women's and kids' apparel, and its chief marketing officer also announced they were leaving after the company reported weak Q3 2017 results. UA is in some disarray and has hired Patrik Frisk, the former CEO of shoe retailer Aldo, as president and chief operating officer. Before that hire, Plank also served as president. Analysts have said the move is a sign that Under Armour realizes it needs some fresh blood to fix its many problems at home. On a positive note, UA's leading endorser, Steph Curry of the Golden State Warriors just led his NBA team to defeat the Cleveland Cavaliers to win the NBA championship. Note inExhibit1above that all eleven top executives are male.

Current Strategies

Similar to Nike, UA's strategies largely focus on product development followed by heavy marketing. UA has contracts with many top professional leagues including the NBA and NFL. UA will become a Connected Fitness partner with major league baseball (MLB) starting in 2020. Connected Fitness offers digital fitness subscriptions to consumers through MapMyFitness platform and the UA Record platform. UA acquired both Endomondo and MyFitnessPal platforms which includes MapMyRun and MapMyRide. As of 2017, about 2 percent of revenues were derived from Connected Fitness, but the platform keeps data on customers, exposes customers to UA, and allows users to be rewarded with discounted UA gear for using the apps and staying fit.

Marketing

UA develops and markets products primarily for use in athletics, fitness, and other outdoor activities. UA attempts to drive demand through brand equity and increasing consumer awareness of their superior product. UA growth is largely dependent on sales from Dick's Sporting Goods (Dick's) and Foot Locker, with which it has developed store-within-a-store sales channels. However, UA has been making great strides selling its products directly to consumers, with 31 percent of revenue in the latest quarter coming from direct sales, up from 25 percent 6years earlier. Wholesale sales to retail companies such as Dick's Sporting Goods account for 65 percent of sales, with 4 percent of sales being derived from Connected Fitness and Licensing in fiscal 2016.

Like Nike, UA pays big money to secure endorsements for their products from high performing athletes who have significant influence in the NFL, NBA, MLB, and even high school teams. Sports stars such as Cam Newton and Tom Brady endorse and wear UA products. Many fans become familiar with UA products seeing them worn by high performing athletes on a year-round basis. In addition to focusing on the large market leagues, UA also focuses on brand authenticity from a more grassroots level by hosting camps, clinics, and other activities for young athletes.

UA uses broadcast, print, and social media outlets to promote the firm's product. UA also also owns 162 outlet stores and 19 brand house stores in North America. Plank and his team are excellent marketers; company ads resonate with athletes and those who aspire to become athletes. UA's bold logo and brash and edgy marketing campaigns inspire movement and physical fitness, positioning the company well within the healthier lifestyle megatrend. Plank and his team relish their underdog image versus big rival firms; they love to operate within and promote an "us versus them" philosophy. This competitive fire has served UA well and has encapsulated many athletes and fans.

Seasonality

UA generates a large portion of its revenue during the third (Q3) and fourth (Q4) quarters of each year. In fact, Q3 and Q4 account for 35 percent more revenues than Q1 and Q2, and account for about 58 percent of yearly revenues. Q3 and Q4 correspond to football season and the holiday and winter seasons in much of the world. Fall and cooler weather gear also cost more.

Finance

UA reported a 3 percent increase in revenues in 2017, but notice inExhibit2a large drop in net income from $256 million to negative $48 million, mostly attributed to higher operatingexpenses and cost of goods sold. About 50 percent of UA's cash and equivalents on the balance sheet are located outside the United States. UA's balance sheets are provided inExhibit3; note that property plant and equipment increased 10 percent in 2017.