PUMA: Business and Business Environment in Sports Industry

This report analyzes PUMA, a multinational corporation in the sports industry. It includes a market size and growth analysis, factsheet, legal structure, interrelationships with other organizations, and a PESTLE analysis. The report also discusses the impact of political, economic, social, technological, legal, and environmental factors on PUMA's business.

Business and business
environment (sports company)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Part 1................................................................................................................................................3
The market size and the growth of the international business environment................................3
Factsheet for a selected sub-sector organisation..........................................................................4
Legal structure of PUMA............................................................................................................6
Analysis For PUMA, interrelationships with other organization, advantages............................7
and disadvantages........................................................................................................................7
Conclusions based on critical impact analysis............................................................................8
Part 2................................................................................................................................................8
PESTLE analysis of PUMA........................................................................................................8
SWOT analysis OF PUMA.......................................................................................................11
critical analysis of both the external and internal factors..................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Sports industry is an industry which majorly deals with business, activity done by the
people in the field of sports. Many business related goods, ideas, services also relate with sport
industry in terms of product purchasing by the consumers. This report will describe a brief on the
sport company of PUMA. This company have a footprint on the world in terms of sports which
basically manufacturer of casual and athletic footwear and clothing. The UK market grows with
the sports industry drastically. PART 1 Then this report will discuss market size and growth of
international business environment. And then Factsheet of organisation in been made.
Furthermore, analysis of organization is described using visual mapping of internal departments
interrelation and impact will also discuss. PART 2 Prepare a presentation in which demonstration
of positive and negative impact of macro environment on the business and explain business
analysis on the basis of SWOT and PESTLE.
MAIN BODY
Part 1
The market size and the growth of the international business environment
PUMA is company which related to sports, all goods that are important for the sports
person are found in the company (Kim, Nauright, and Suveatwatanakul, 2020). The company
manufacture high quality of product by which market image of company remain constant.
PUMA offer a deal on particular occasion by that they serve better in the marketing field. The
product which available on the store have a high comfort and sell all aged group's products the
main reason behind that is to achieve customer's trust and creates a positive value on the mind.
The company made products according to demand of sports person.
Different types of organization
PUBLIC SECTOR
The public Sector mainly includes unit, department and agency which is government
based and create organization in favour for public and by public so that is also called as public
organization. Elected person or leader made a unit by which they serve best in their region, state,
country. All funding which is necessary required by the team was funded by the government and
also provide essential facilities so that they do their best in the particular filled and achieve goal
that also increase country's image in the world.
PRIVATE SECTOR

The private sector focus on earn high amount of profit margin in selling of product, that
can be run by an individual. Are which coming under this sector are gyms, sporting, goods,
retailers which means that the organization that owned by the individual itself and attain higher
rate of amount from the customers. They work according to the demands of purchaser which
result in increased the positioning of the organisation.
VOULENTRY SECTOR
The voluntary sector is also known as non-profit sector or community sector which main
purpose is to uplift the society and creates many team, clubs by which actual talent comes
upfront because many people didn't have enough resource to fulfil their dreams. This sector
provides many services to the people majorly that done by the community. Mainly this sector is
run by the trusties and non-profit organization.
PUMA is coming under in the private sector which works for their profit and earn much
amount of profit that also enhances the position of company.
Factsheet for a selected sub-sector organisation
PUMA is a multinational corporation company which comes under in sports industry
have a headquarter in Herzogenaurach, Bavaria, Germany (Mudambi and Navarra, 2021). The
largest manufacturer of sportswear in the world. Company established in 1948 in the Germany.
The company operates in worldwide and have footprint in the marketplace and continuously
increase in the revenue rate, gross productive rate. The products which are commonly used by
the sports person such as gloves, socks, sportswear, shoes, balls, and many more.
There are basically three type of organization on the basis of size and scope.
Particulars Micro enterprises Small enterprises Medium & Large
enterprises
Size This includes business
which comes under in
small sector, the
minimal number of
worker are work in the
company and at the
time of initiation they
invest less capital
This business includes
a number of workers
and have grown in a
subsequent manner.
Independent bodies are
owned this type of
business which also
increase in the share of
This business includes
a proximal amount of
worker with the proper
organization because it
can't be possible for
handle large scale
business by one or two
candidates. Mostly

amount so thereby the
amount of profit is
also less. The fast and
furious machine
operator have only a 1
candidate which work
in the shop.
the business in the
market. The bake
affairs shop has only 5
workers and that
comes under in micro
enterprise.
involve a multinational
companies.
Scope This enterprise
constitutes in the
developing country
with large number of
businesses. The
company which are
placed in this sector
are generally
compelled by micro
enterprises. The
greater scope is not
there for uplift because
they have not enough
capital to invest on the
business.
They have greater
amount of scope in
terms of growth and in
compete with other
business dealers. They
have greater chances
of turning the table
because basically this
business run under
partnership of more
than two members.
The multinational
companies grow their
share in the different
countries with
different strategies and
plans. That reflects the
company image in
front of others. They
basically high tax
payer to the
government and comes
under in the public
sector.
Products & services There are major two products on which PUMA
company focuses:
footwear
Sportswear
vision The vision of PUMA is divides into four major
components such as
 Most desirable

 sport-lifestyle company
 manufacturing of unsustainably
products
 Worldwide Innovation in strategy and
placed higher among all other brands.
mission PUMA company is attain highest and fastest
growing brand in all over the world
Objective The Largest brand manufacturing company in
the world.
Stakeholders Stakeholders are those people which have
direct relation with company but the amount of
share percentage would be credited which they
invested in the company and invest the time of
manufacturing of products mainly PUMA
have Investors, Customers, Employees,
Debtors and Management.
Company values As PUMA is increases day by day which is
possible by the team work of employees and
sere their business with honesty, trust and
loyalty of customers.
Legal structure of PUMA
PUMA has dual management structure and supervisory structure. In the management
board there are four members in composition and supervisionary board have six members in the
panel in which two candidates are elected by the internally voting of workers and four elected by
general meeting which is held annually (Manu, 2019).
 Supervisory Board- their main function is to monitor and advice all company's
management, and they also appoint board members.

 Management board- Manages company's all department and represent internally and
externally company's profile.
 Annual General Meeting- Resolution can be made with the approval of board members
i.e. Supervisionary board and management board for auditor’s appointment.
Analysis For PUMA, interrelationships with other organization, advantages
and disadvantages
For continuous growth of the company it must be need organizational structural by which
a company can meet a peak of success (Papenhausen and et.al., 2016). PUMA has unitary form
of organizational structure which involve hierarchical structure so that a board member placed at
higher position and executive are placed at lower level which handle ground staff management.
Board members implement strategic decision which enhance the growth of sporting goods.
Competition increase day-by-day so various department play a major role in maintaining the
positioning of company.
Marketing- the way by which interaction between customers and company's product may
develop and also that helps in meet with other businesses. This department also responsible for
maintaining of brand image of company.
Finance- This department is important for maintaining expenditure and manage all records
which related with capital and focus on the profit margin of company.
HR- There main motive is to manage employees, strategies for growth and also utilizes
resources which is beneficiary for the growth of company.
The main motive of PUMA is to achieve higher amount of profit by simultaneous
functioning of above given department which means that marketing of company is not possible
without investment of capital so that is related with finance department. HR helps company to
meet potential employees that may part of marketing and finance department because hiring is
done by the HR department that decide candidates in different department according to their
knowledge.
Advantages
PUMA company have large number of employees which maintain healthy relation with other
department and cooperate with them.

The organizational behaviour of company may help in productivity and profitability as the
employees share relevant information with other department.
Disadvantages
As PUMA is spread over worldwide and have thousands of employees, and they know other
branch role and responsibilities which may utilize by them to harm other branch.
The competition is increases among functioning of different branch.
Conclusions based on critical impact analysis
The PUMA company follow hierarchical structure for managing all functions which was
requited for the growth and standardize of company value in the market. Hierarchical structure
has many levels and from above level the power is reduced when it comes to lower level. There
are many departments for managing the business and each department have their roles and
responsibilities to attain high amount of profit margin. PUMA company have many potential
employees which work in a unity with other departments. That criteria play a very important part
in attaining the higher positioning of company and face value in the marketplace.
Part 2
PESTLE analysis of PUMA
Political Factors
Since the PUMA operates in worldwide and have positive relationship with the
government creates a footprint in the world. Globally political factors greatly influence the
performance of Puma, recently PUMA operates an e-commerce portal by which retailers sell
their products on the online sites. Online shopping is in trend in the market and according to the
trends PUMA also work with that criteria in obtaining higher amount of profit margin in selling
of products in the market place. These include, tax rates, acts of legislation and of course, the
stability of the country it operates in. Due to ongoing financial instability in the world, many
governments encourage retailers to create jobs for the domestic population. As PUMA plays its
part in creating employment opportunities, it also, in turn, increases the demand for its products
and diversifies its workforce.
Economic Factors

These factors are the main point of concern for PUMA, as they are most likely to
leverage costs, demand, profits and prices. Therefore, the company should be aware of any
changes in policies, such as changes in taxation or any other factors which could affect the
accessibility of finance. It is important to mention that although the business is growing
internationally, the company is still quite dependent on the china because the labour is available
at the cheap rates that would be easy for manufacturing of products. But in some countries the
costing of material is much high so the price of product increases that results in declination of the
company growth because some customers are shift to first copy products and purchase that
products. With said that, internationalization and diversification have been two key strategies
pursued by the company over the years, and a major reason for its success. Furthermore, due to
decline in disposable income levels and household incomes, PUMA, has shifted most of its focus
towards a luxurious items and manufacture according to the demands of customers.
Social Factor
Due to a variety of social changes, trends indicate that customers in the UK have moved
towards bulk shopping and one-stop shopping. Therefore, PUMA has increased the number of
items offered for sale. The type of goods and services demanded by consumers is mostly
influenced by their beliefs and attitudes which, in turn, are influenced by social conditioning.
Because customers are becoming more aware of health issues, so there by people are engaging
with sports activities due to which their approach towards health is changing constantly, and that
bring a large amount of opportunity for expanding the business in the new region as well i.e.
health and energy drinks. PUMA is adapting to these changes by accommodating the demand
and work accordingly. PUMA company has a strong fan base by which they continuously
increase in the demand of products.
Technological Factor
The advancements in technology have brought various new opportunities for PUMA.
From past few years PUMA work on the innovation in the sports shoes and invest a large amount
of time in research and execution of plans for better performance of running shoes that is known

as IGNITE that particularly reduce pressure with increase in energy of person that results in
long-running. The technology mainly work positive for the Athlete person which may have
interest in Olympics PUMA have variety of products which manufacture with advanced type of
technology one of them is Puma Fi, the main objective behind that is to adjust automatically
according to the foot size of person that is unique feature which was implemented by the
company and creates a positive impact on the profile of company furthermore this also creates
productivity and profitability.
Legal Factor
violation of legal law may decline the position of the company but PUMA have high trust
on the government and follow all rules and regulation which was imposed by the government by
each country. As PUMA is multinational company so it has 127 factories which spread in the
world and have 122 factories in the Asian region. The legal law was strictly followed by every
factory even placed at different region. If the company didn't follow rules and regulation that
may result in the stoppage or banned by the side of government authority. An incident which was
happened with PUMA accused of patent infringement in 2018. Nike claimed that PUMA
copying the products by its technology i.e. Fly knit and Didn't get permission from the Nike so
there by the government order to cease the use of technology with immediate effect,
Environmental Factor
Environmental is major aspect according to public because everyone is aware about the
damage to natural resources by excess using of it. So thereby the company focus on the
manufacturing of eco-friendly clothes by which customers attract with the brand. Climate
changes drastically from past few years so that creates awareness among the people towards the
environment. With quality, affordable and aesthetic products customers also want some
innovation in products which in related top the environment. Sustainability play major role in
gaining higher position and also increase the face value in the market place. PUMA also
establishes better vehicle facilities with emission of less toxic gases that part was generally for
the supply chain management. PUMA doing great in the field of sustainability by launching the

biodegradable basket shoes that has been decomposed by the industry. Many good deal of
biodegradable polythene also be made by the company which result in reduce in amount of
plastic that initiative took by the company for decreasing the pollution in environment.
SWOT analysis OF PUMA
STRENGTH
 Fast Growth- PUMA company has effective marketing and innovative strategy of
advertisement so by that the company's growth rate increases in period.
 Products particular for women- PUMA used celebrity for promotion of female products
and by that the product's sale effectively increases.
 E-commerce- The current trend go with the online shopping and PUMA work efficiently
with that trend to obtain higher rate of profit margin.
WEAKNESSES
 World Wide Management- As PUMA spreads in all over the world with 120+ countries
and it is quite difficult to manage marketing at every location and manage, monitoring
also required for market penetration.
 Financial Strength- Performance may suffer of PUMA in terms of finance because many
competitors are also present with larger amount of capital, and they invest their capital in
marketing and promoting of products. In that region PUMA lack that is the major
weakness among all others
OPPORTUNITIES
 Developing Markets- PUMA concentrate into entering in new market that increase its
business and improve business in the under develop and developing countries. That
results in increase in product's demand and global footprints.

 Products diversification- With increase in the trend sports the PUMA also works with
sports equipment that is generall6y used by the athletes and sports person. PUMA also
launches some energy drinks, deodorants and soaps.
THREATS
 Intense Competition- Nike gives tough competition that results in declination of sale of
PUMA. Nike also serve wide product's range that eaten up the probability rate of PUMA.
 Allegation- PUMA alleged by Nike for product's infringement, that affects them and
Nike file a charge on the company for banned of that technology.
 Unique products & costs- Many competitors use innovation in products by decrease in
the rate products that is major threats face by the Company because audience get shift to
lower cost products.
critical analysis of both the external and internal factors
For successful business environment there are needs to be strategic management so
thereby the business growth would be increase in effective manner. Planning is important for
strategic management and the various models are applied by the company for identifying the
position of company in the marketplace. Weakness and Strength are comer under internal factor
and opportunities are comer under external factor so thereby PUMA lack in the finance
department so for better financing the company increase in the business partners and business
strategy there by company may compete with Nike and attain the innovative ideology of
marketing and promoting of products. PUMA should enhance the department in the supervision
of different branch by that the company functions didn't get overlapped by other.
On the other side opportunities and threats are comes under in external factor of macro
environment which means that the company focus on the area where it lacks and didn't get higher
amount of profitability rate in the market place. For sharing higher shares in the market the
company enhance their products ranges by which market didn't get shift to other companies for

their needs. PUMA should work on manufacturing of low cost products for middle class peoples
so that sale rate is effectively increases that would result in the spread rate of products in market.
CONCLUSION
Conclusively, It can be said that sports industry is a leading industry in UK as it share
increases the economy of the country. Sports industry is majorly based on the business which
deal with goods, services and activities relates with sports. This report had discussed in brief on
the company PUMA in UK which has a large scale production of sportswear and footwear. This
organization have earned larger amount of profit from the market and have high market value
among all other companies. PART 1 later this report discussed market size and growth of
international business environment. And prepare Factsheet of organisation which included
background detail of organization, vision, mission and objective of business. Later this report
discussed on analysis of organization using visual mapping of internal departments interrelation
and impact had discussed PART 2 Prepare a presentation in which demonstration of positive and
negative impact of macro environment on the business and explain business analysis on the basis
of SWOT and PESTLE.

REFERENCES
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