Introduction
Background of the study
Every business big or small has a strategy and structure. Some are formally formulated through a thorough planning and some just develop informally overtime as the business continue to grow and adapt to the business environment they`re in. However, no matter how these two evolves, it is important for a firm`s strategy and structure to always fully support each other. A business strategy refers to its plan for the whole organization that commences how it will use its major resources to achieve its goals. Business structures on the other hand, refers to the way the pieces of the business fits together such as its management operations and product distributions. (Hill, 2012)
Uggs Australia is part of the portfolio of brands acquired by Deckers Outdoor Corporation which is an American company. Deckers acquired the Ugg brand in 1995 from its founder Brian Smith and repositioned the brand as a luxury brand sold through expensive shops in the US. Uggs primary product is their classic sheepskin boots but as the company grows they have diversified to produce and sell others including a variety of footwear, clothing, bags and outerwear. Uggs is now being sold all around the world and had a sales of over US$1 billion in 2012. (www.deckers.com, 2012)
Uggs Australia: Swot Analysis

* Strength: Some of the brands strength includes its already established loyal customer base, prior to Deckers acquisition of the brand, Uggs was already made popular by beach surfers. Uggs is also a well-loved brand by its customers because of its high quality and wide assortment of styles and colors for women.

* Weakness:The old saying “nothing/no one is perfect” comes true for the product as there are some drawbacks also associated with Uggs products. Some of these are its limited exposure for its men`s line compared to the products` high popularity for women`s line. Additionally, the products have no additional foot support and are also not weather friendly as they`re too hot to wear in summer and they can`t be worn on rainy seasons because these products are not water proofed.

* Opportunities:Globalization of business environments and markets provides a great opportunity for Uggs. The company can take advantage of the continuous automations and innovations of technology along with the opportunities brought by social media and e-commerce and waiting to be captured is also the large number of untapped male customers.

* Threats: Threats for the company includes both external and internal factors. External threats are those challenges which the company has no control over such as weather conditions, this is a threat for the company as most of their products are seasonal. These also includes trademark laws like intellectual property rights especially for the use of “uggs”, PETA(People for the Ethical Treatment of Animals) and political situations of its markets. Internal challenges ranges from growing numbers of the brands competitors, limited supplies of raw materials such as sheepskin, lots of cheap counterfeit products and the frim`s over expansion which lead them to loss some distributors.

Uggs International Business Strategy and Structures Analysis
Company Structures
In starting a business, the most vital decision will be its legal structure while business types and sizes are the fundamental basis in determining business structures. The magnitude of the business is dependent on its rate of growth and its need for expansion. Some business startups are guided mostly by legal requirements, it has a separate legal entity and is capable of holding assets using its name. It also has a complex structure, and is run by the board of directors who oversee its operations.
Deckers like some large companies uses a combination of both centralized and decentralized structures for their portfolio of brands. Most “companies rarely centralize or decentralize all decision makings, rather, they look for alternatives or ways to achieve efficiency and effectiveness.” (Wild, 2014, pp. 311-317) Deckers has centralized decision making in some of its operational structures but is using mostly a decentralized approach all over the organization. In a centralized structure, key decisions are taken by the top management and implemented in lower levels as per the directions of the top management. A decentralized structure on the other hand divides decision making into sublevels. Key decisions are often made by several individuals. This structure relies on a team environment at different levels in the business.
A multinational company has corporate functions in its structure. These functions include human resource, design and customer service, and production. Ugg Boots Company will use it function unit in designing the shoe that will be in line with its target markets culture. For a starter, like Ugg Boot Company in a foreign market it uses it customer service department to give particular attention to the new market. Ugg Boots Company in promoting it products in the new market will decentralize its functional structure. Human resource will comprise foreign employees who will carry out work in their countries.
An organization structure of a multinational company like Ugg Australia that requires its presence in the foreign market should have some geographical basis. Apart from the home headquarters, the business also should establish semi-independent operations in those countries in which its business operates. For example if wants to expand in Japan, it will have to form a subsidiary company in Japan. By doing so, the company’s flexibility will be established so that the head office will easily transfer responsibilities whenever the local conditions require them and take over the operations.
Ugg Australia will be able to incorporate foreign operations without disrupting its organization by creating an international division (Bert Markgraf). This structure is best for a corporation that have established the home market, and that is gradually growing into international business. The company primary organization will be free to focus on its home market and leave international division to grow and maintain a foreign market in the country which they are active.
Uggs matrix organization structure will be able to combine its functional units with flexible local operations (Bert Markgraf). Foreign workers will communicate to the local managers reporting about their work and at the same time reporting to their head office for other functions. Ugg Australia home organization will be able to retain control of promotions; disciplinary matters while employees do the work in accordance with the local requirement.

Company Strategies

Deckers outdoor corporation seek to differentiate their brands through offering diverse lines that emphasize functionality, authenticity, comfort and quality. One of their mission is to build niche footwear lines into global brands with market leadership positions.

Key elements of their global strategies are: Continue to drive UGG Australia growth- “exceed great products to grow a great brand”. Deckers company diversify product line on a foundation of multiple categories to keep the brand fresh and appeal to a broader audience. They intend to continue to focus on developing, indentifying, building and acquiring new brands. Decker company expand global presence to look for opportunities to grow its store base in order to effectively penetrate into the target markets and potential brands.
Growth strategy: Product diversification. UGG brand expanded their collections from Ultra and Classic sheepskin slippers and boots to a broader footwear line for children, men and women in a variety of materials designed and styles for wear in a different occasions and climate. Product diversifications resulted in dramatically increasing exposure for UGG products and contributed to the growth of the UGG brand. One of their collections are Cold Weather Collection, this collection was designed with rugged style and waterproof eVent uppers designed to cope the cold weather and wet climates. UGG increased its product selection of kid’s and men’s footwear collection.
Growth strategy: Increase retail penetration. The company expand their retail store to easily reach their customers and meet the increasing demand for their products. In Year 2008, when they decided to open 12 retail outlet store in different countries such a-s New Jersey, San Francisco, Califonia, Australia, etc. The company owned stores currently operates 10 worldwide full price stores plus 8 outlets. They are planning to open approximately 10 stores per year as appropriate location emerge. E.G. Manchester, Tokyo (Oregon)

Summary

In sum, for a firm to attain superior performance and earn a high return in capital, its strategy must make sense given market conditions. Market conditions, strategy, structure and operations must all be consistent with each other in order to attain the firm`s goals.Deckers has been successful in Managing its strategies and structures with regards to UGG Australia despite all the controversies faced by the firm. UGG Australia has remained it`s top brand product as of 2012 generating a double digit growth for 11 consecutive years. (www.deckers.com, 2012)

Hill, C. W. (2012). Global Business Today (2nd ed.). NSW: McGraw-Hill Australia Pty Ltd.
Wild, J. a. (2014). International Business: The Challenges of Globalization (7e ed.). Pearson Education, Australia. www.deckers.com. (2012). Retrieved April 3, 2015, from http://www.deckers.com/company/history http://uoinvestmentgroup.org/wp-content/uploads/2012/09/DECK.pdf