Organizational Issues And Solutions In Under Armour

Organizational Issues and Solutions in Under Armour

Describe the Organization and the Issue to Resolve Founded in 1996 by Mr. Kevin Plank, Under Armour is a sports apparel company that trades under the symbol UA on the New York Stock Exchange. The company is headquartered in Baltimore, Maryland, and has approximately 1,900 employees. According to Plank, the idea for the company came to him when he was playing football for the University of Maryland (Miloch, Lee, Kraft & Ratten, 2012). Plank decided to create a t-shirt with a similar fabric as his compression shorts, after noticing that the shorts stayed dry during practice, Plank went on to start the company at the age of 23 years old in a basement in Washington D.C.

Under Armour mainly produces apparel for sports, physical activities, and working out. The main concept of the products is their ability to stay comfortable and dry despite the athlete sweating, as the products are made from synthetic fibers which help to keep the skin dry by absorbing moisture. This high moisture-wicking capability makes them particularly popular among athletes, especially football players. One significant organizational issue that adversely affected productivity is the management shake-up. While the company aimed to surpass its biggest rival, Nike, by 2015, it faced setbacks, including the loss of several top executives, which slowed down its momentum.

The company lost two senior-level executives in November 2017: Pamela Catlett, Senior Vice President in the women’s and youth category, and Andrew Donkin, Marketing Chief (Lieber, 2018). Additionally, many managers have been leaving over the past three years, creating a concerning trend that impacts organizational stability and investor confidence. These issues indicate that the company is not progressing as planned and raise questions about the stability of its strategic initiatives. Moreover, the current corporate culture has been criticized for fostering a problematic workplace environment, which may contribute to the high turnover of senior management.

Despite Under Armour’s vision to empower athletes worldwide and its mission to improve all athletes through innovation and passion, internal cultural issues threaten to derail these objectives (Lieber, 2018). The departure of top management complicates the company’s ability to achieve its strategic goals and undermine its market competitiveness. Therefore, addressing organizational culture and leadership retention is critical for restoring stability and fostering growth.

One of Under Armour’s primary weaknesses is its difficulty retaining senior leadership, which hampers consistent growth and strategic execution (Lieber, 2018). Heavy investments have not translated into stability or market dominance, partly because losing critical leaders disrupts operational continuity. This challenge impedes the company’s ability to respond to market needs effectively, allowing competitors to gain ground while Under Armour struggles to maintain its market share (Miloch, Lee, Kraft & Ratten, 2012). Furthermore, the leadership has overlooked the emotional climate within the company during turbulent periods, impairing recovery efforts. Although CEO Kevin Plank has urged employees to improve the company’s culture, substantial organizational change is necessary to secure its future.

Proposed Solutions for Under Armour

To resolve the core issues facing Under Armour, a comprehensive strategy centered around modifying its workplace culture and enhancing management stability is essential. The primary approach involves fostering a corporate environment that eliminates systematic inequality, which appears to be a significant driver of employee dissatisfaction and turnover. Conducting thorough employee consultations can help identify specific grievances and areas for improvement, thereby creating a more inclusive and motivating workplace atmosphere (Lieber, 2018).

Recognizing and rewarding employees' contributions, especially at the managerial level, can significantly boost motivation and loyalty. Such recognition could include formal acknowledgment programs, performance-based incentives, and career development opportunities. When top management feels valued and recognized, they are more likely to remain committed to the organization, which can stabilize leadership and reduce attrition.

In addition to cultural reforms, the organization should reassess its investment strategies to ensure resources are directed toward growth areas aligned with market demands. Strategic resource allocation can prevent wastage and improve organizational focus. Strengthening internal communication, transparency, and inclusivity will also enhance employee engagement and trust. Implementing leadership development programs to nurture potential successors ensures continuity and reduces dependency on a few key leaders (Miloch et al., 2012).

Ultimately, the essence of solving Under Armour’s organizational issues lies in prioritizing leadership retention through cultural change and employee engagement initiatives. The company should implement targeted interventions such as leadership training, mental health support, and open forums for dialogue. These steps can improve the emotional climate, foster a strong sense of purpose, and align organizational values with employee expectations—key factors in achieving sustainable growth.

Conclusion

In conclusion, Under Armour faces critical organizational challenges primarily related to leadership instability and workplace culture. Addressing these issues by fostering a more inclusive, motivating, and transparent environment can improve management retention, enhance overall productivity, and support the company’s strategic ambitions. Implementing these solutions requires a concerted effort to align organizational values with employee well-being and development. By doing so, Under Armour can restore its competitive edge and continue empowering athletes worldwide.

References

  • Lieber, C. (2018). Under Armour won’t let employees expense “adult entertainment,†limos, or gambling anymore. Vox. Retrieved from https://www.vox.com/
  • Miloch, K. S., Lee, J., Kraft, P. M., & Ratten, V. (2012). Click clack: examining the strategic and entrepreneurial brand vision of Under Armour. International Journal of Entrepreneurial Venturing, 4(1), 42-57.
  • Miloch, K., Lee, J., Kraft, P., & Ratten, V. (2012). Strategic branding in sports apparel: The case of Under Armour. Journal of Brand Management, 19(2), 117-131.
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