puma final

PUMA 

World¶s leading sport life style German company

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Founded by Rudolf Dassler 

ENVISIONS 

Fair, Honest, Positive and Creative

PRODUCT CATEGORY Footwear, Apparel, Accessories MISSION ³To be creative leader in sport style by giving them an opportunity and the responsibility to contribute to a better  world for the generations to come´.

PUMA CREATES VALUE THROUGH

ENVIRONMENT Suppliers Government regulations i.e. taxes etc. Economic factors such as inflation, business cycle. Technology Demographic changes in income levels, age Fashion trends

INPUTS

Raw materials  Workforce/labor   Information about trends in the similar  industry  Human capital management  Funding capital requirements Information about competitors like Adidas,  Nike etc 

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CONVERSION PROCESS Skilled workforce Developing the products ( processing) Infrastructure Licensed outlets Training of employees to meet standardization Creative designers

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OUTPUTS  Quality products  Satisfied employees Creation of the brand¶s value as a premium global  Athletic brand in the market  Increase in the company¶s profits  Satisfied consumers  Goodwill of the firm  Sustainability in the market

ORGANISATIONAL VALUES SAFE - Social Accountability and Fundamental Environmental Standards PEACE - PUMA received the Award for the Best Corporate Social Responsibility (CSR) Initiative at the prestigious Peace and Sport Awards 2010 for its PUMA.Peace  program and multilayered campaigns to support global  peace. CREATIVE - Initiative aimed to bring together individual artists and organizations, and provide them with a  platform for creative exchange and international exposure. Eg. PUMA.Creative Impact Award for documentary film.

Top Management Chairman of board-

Francois Henris Pinault

Vice Chairman of board-

Thore Ohlsson

CEO-

Jochen Zeitz

Directors-

Gregoire Amigues Jean Francois Palus Oliver Burkhardt

MAJOR SHAREHOLDER

PPR- Pinault Printent Redoute has major stake in Puma

Stakeholders

Inducement Contributions

Employees

Salary, benefits

Good service, high quality service

Customers

Satisfaction, high quality goods and service

Brand loyalty, regular   purchase, willing to pay any amount for good quality products and

Suppliers

Revenue

 brands Quality goods

Government

Tax benefits

Rules and regulations

Shareholders

Capital appreciation, dividend

Capital

METHODS TO JUDGE ORGANIZATION¶S EFFECTIVENESS 

Multi dimensional scaling method -

3 dimensions of organizational effectiveness as representing competing values 

1st set ± involves organizational focus

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2nd set - concerns the structure of the organization

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3rd set - concerns mean and ends

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Human relations model

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Rational goal model

STRUCTURE OF ORGANIZATION 1)PUMA follows matrix structure 

Advantages

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Communication across various functions

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Disadvantages

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role ambiguity and role conflict.

2)Decentralized structure 3)Team structures(integrating role)

CORPORATE HEAD QUARTERS

FOOTWEAR

MARKETING

DESIGN

APPARELL

MARKETING

DESIGN

ACCESSORIES

MARKETING

DESIGN

MIS

MIS

MIS

ADMINISTRA TION

ADMINIS TRATION

ADMINIST RATION

LEVELS STRUCTURE 

9204 employees and distributes its products in more than 80 countries.

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It has just 3 levels, hence it as a flat organization.

CEO

Functional Heads

Staff 

PUMA HAS TO MANAGE TWO ASPECTS OF THE ENVIRONMENT 

Influence other organization so that it can obtain resources.

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Respond to the needs and demands of other organizations in its environment.

METHODS 

Joint ventures

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Reduces the problems of managing complex interorganizational relationship.

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Takeovers/Acquisitions

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Resource exchange within the company rather that between two companies

JOINT VENTURES / STRATEGIC ALLIANCES / TAKEOVERS  

PPR(Pinault-Printemps-Redoute) bought a large stake in Puma for¼5.3bn . Joint venture with Hong Kong-based Swire Pacific covering the Hong Kong and China markets(market coverage)

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PUMA acquired 100% of its long-term Chinese joint venture Liberty China Holding Ltd(control and distribution)

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Puma announced it will acquire 100 percent of Cobra Golf.

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Strategic alliances such as association with Rajasthan royals and Deccan chargers for the IPL series.

BUSINESS LEVEL STRATEGY 

Puma follows Porter¶s 3 rd strategy ± FOCUSED DIFFERENTIATION

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Around 1993, Puma was on brink of bankruptcy.

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Solution ± targeted selected customer groups like armchair  athletes, creating stylish shoes and clothes that were trend setters.

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Puma went out of way to be different and hence has been  profitable every year since 1994 and its sales are growing faster than its competitors.