puma final
TRANSCRIPT
PUMA World’s leading sport life style German company Founded by Rudolf Dassler
ENVISIONS Fair, Honest, Positive and Creative
PRODUCT CATEGORY
Footwear, Apparel, Accessories
MISSION
“To 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
ENVIRONMENTSuppliers
Government regulations i.e. taxes etc.Economic factors such as inflation, business cycle.
TechnologyDemographic 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
CONVERSION PROCESSSkilled workforce
Developing the products ( processing)Infrastructure
Licensed outletsTraining of employees to meet standardization
Creative designers
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 VALUESSAFE - 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 brands
Suppliers Revenue 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 2nd set - concerns the structure of the organization 3rd set - concerns mean and ends Human relations model Rational goal model
STRUCTURE OF ORGANIZATION
1)PUMA follows matrix structure Advantages Communication across various functions Disadvantages role ambiguity and role conflict.
2)Decentralized structure
3)Team structures(integrating role)
FOOTWEAR
APPARELL
ACCESSORIES
MARKETING DESIGN MISADMINISTRATION
MARKETING DESIGN MISADMINIST
RATION
CORPORATE HEAD
QUARTERS
MARKETING
DESIGN MISADMINISTR
ATION
LEVELS STRUCTURE 9204 employees and distributes its products in
more than 80 countries. It has just 3 levels, hence it as a flat organization.
Functional
Heads
CEO
Staff
PUMA HAS TO MANAGE TWO ASPECTS OF THE ENVIRONMENT
Influence other organization so that it can obtain resources. Respond to the needs and demands of other organizations in its
environment.
METHODS Joint ventures Reduces the problems of managing complex inter-
organizational relationship. Takeovers/Acquisitions 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 for€5.3bn . Joint venture with Hong Kong-based Swire Pacific
covering the Hong Kong and China markets(market coverage)
PUMA acquired 100% of its long-term Chinese joint venture Liberty China Holding Ltd(control and distribution)
Puma announced it will acquire 100 percent of Cobra Golf.
Strategic alliances such as association with Rajasthan royals and Deccan chargers for the IPL series.
BUSINESS LEVEL STRATEGY
Puma follows Porter’s 3rd strategy – FOCUSED DIFFERENTIATION
Around 1993, Puma was on brink of bankruptcy. Solution – targeted selected customer groups like armchair
athletes, creating stylish shoes and clothes that were trend setters.
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.