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.