Organizational Structure and Objectives: A Case Study of Puma

This report provides an analysis of Puma's organizational structure and its business environment. It explains different types and purposes of organizations, focusing on Puma as a private sector entity. The report also explores the size and scope of Puma, linking its structure to business objectives, products, and services. A critical analysis of the complexities of Puma's organizational structure is presented, including the interrelationships between different organizational functions and their impact on the overall structure. The U-form structure adopted by Puma is discussed in terms of its effectiveness in managing the company's global operations and maintaining a competitive advantage. The report concludes by highlighting the importance of aligning organizational functions with business objectives to ensure the company's success.

Unit 1
Business and
the Business
Environment

Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
P1 Explain different types and purposes of the organization and their legal structures-.......3
P2 Explain the size and scope of a range of different types of organizations-......................4
M1 Analyse how the structure, size, and scope of different organizations link to the
business objectives and products and services offered by the organization-.........................5
D1 Provide critical analysis of the complexities of different organizational structures-.......6
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure-.................................................................................7
M2 Analyse the interrelationships between organizational functions and the impact that
can have upon organizational structure-................................................................................7
Conclusion..................................................................................................................................8
References................................................................................................................................10

Introduction
The term organizational structure refers to the arrangement where the company works
on distributing, allocating, and managing tasks and duties as per the knowledge and ability of
employees currently working with it. Following an optimistic organizational structure acts as
a crucial way through which business management can serve their customers more effectively
and efficiently. It is also considered as the competitive strategy for the firm as it controls the
overall management and helps them in taking suitable decisions for a successful future. When
a business institution forms a good piece of organizational structure, then it will allow the
formulation of an efficient economic environment in the firm. By adopting the correct
structure of the organization, the manager of the company ensures a formal way of learning
and working among the employees (Hein, and Lasch, 2021). The given report is disclosing
the organizational structure of a world-famous sportswear company i.e., Puma. It has
described all and all relations between the different departments of the company, and the
reasons why the company has developed all these sections in a firm. In addition, a few
complications may arise in the organization and can make several changes and modifications
in the operational strategy. Apart from it, this organizational structure also established an
appropriate relationship with the functions which are prevailing in the management. While
formulating a business policy, the manager also thinks about the objectives that need to be
achieved for the complete growth of the firm.
Main Body
P1 Explain different types and purposes of the organization and their legal structures-
The complete framework of the business industry is driven by the formation of
various sectors which shows their quality and working procedure to create differentiation
among each other. Broadly the format of an organization has been classified into three main
divisions which are listed below, along with their legal construction-
 Private Sectors- The main characteristic of the classification of private business
entities is that they are not governed or controlled by any other external establishment
or bodies. The main motive of such a business entity is to raise an enormous amount
of profit so that the management can achieve a better position in the national or
international market. Along with this, the company also aims to acquire a mass
number of workers or employees who are skilled and have the potential to work for
the betterment of the respective firm (GEBHARDT, 2022). In the United Kingdom, a

businessman has to follow several stages for the registration of his company. Puma is
a sportswear clothing brand established in 1948 in Herzogenaurach, Bavaria,
Germany. It is also a private-sector company that was started by Rudolf Dassler. Not
only this, such private companies have to pay taxes after their existence in the market.
The management and board of the department of the company are formed with the
contribution of shareholders such as equity and preference shares.
 Public Sectors- When the business firm runs with the objective of social welfare and
construction of such infrastructural facilities which could result in the benefits of the
local people then this form of entity is considered as the public sector institution. The
overall functioning of this structure has been governed by the nation's legislative
bodies, where all the business's operational activities are directed toward improving
public amenities and services (Fredslund,2019). Apart from all these working, public
sector units also enhance the employment opportunities for the youth and make them
financially stable. Some public organizations also promote skill development and
training programs for students who have completed their studies and are looking for
jobs. The public limited organization in the UK has the right to sell their shares in the
stock exchange by which general people can purchase them and join the work
structure of such sort of institution.
 Voluntary Sectors- Those units or organizations that focus on enhancing people's
social values and beliefs, is known as voluntary business. Charities are one of the
most common examples of this kind of framework, where people generally contribute
to these entities' actions. Moreover, it has been cleared from the name itself that it is
up to the members and individuals how much they can work effectively for the
development of the activities in voluntary films. While starting such firms one does
not have to put so much effort as it has the most modest methods for registration.
Even one advantageous component of this organization is that members have
limitations in fulfilling the liabilities of the business and only aim for social
development and are considered a non-profit organization.
P2 Explain the size and scope of a range of different types of organizations-
The number of employees who are associated with the company and contribute to the
profit maximization of the firm is known as the size of that particular organization. It helps in
giving brief detail about the work function and departments of the firm (Bartlett, and Ray,
2021). If the organization has different sectors, then it indicates that the company has distinct

people in the management who have unique qualities and skills to increase the productivity of
the firm. In private organizations generally, the size of the company varies with the
operational activities and the working range of the business. If the company is running on a
small scale, it might have limited work areas (Høiås,Tabassum, and Nayak,2022). By
including this fact, it is clear that such organizations constitute a minimal number of
employees as its productional level and departmental activities must be restricted to some
areas. On the other hand, the public organization always works in the expanded form as the
main concern of the firm is to generate improvement among the facilities which are being
provided by the legal authorities to the public. To accomplish such an objective then it is
necessary to have a group of a mass number of individuals to the firm can attain its set goals.
The public organization also supports building strength in the country’s economic
framework. Considering Puma, the company dealing in sportswear at the mass level this
company requires some set of employees with which management will get the opportunities
by which they can contribute at their best in the improvisation of the business activities. The
company wants to spread its business activities in more and more countries and it is only
possible by presenting the right set goals and objectives for the firm in the business. It will
also help in making some different futuristic aims which the company is planning to achieve
in the coming year. By identifying the scope of the business, it has been noticed that Puma
has to work in different sports fields. Other than sportswear company is also offering
camping equipment. This makes the various innovative product line for the consumers and it
is not only limited to the range of sports apparel and clothes. Puma constantly working on
bringing better outputs by analysing the new trends in the sports industry.
M1 Analyse how the structure, size, and scope of different organizations link to the
business objectives and products and services offered by the organization-
While starting a business, the founder primarily focuses on setting up the goals and
targets for which the operations will be executed in the business. All those aspects of the
management are coordinated with the framework and size. Puma has also generated its
organizational objective (Jobin,Ramanan, and Sridharan, 2022). This company is also
concentrating on the type of workforce required for efficient operation, which helps the
company become the topmost sports brand around the globe. In the year 2021, Puma has
almost 16000 employees who are functioning for the better of the business firm. In its initial
days Puma offered very limited products and services to its customers, but with the increment
in the innovation and strategic approaches of the company the manufacturing unit gets

expanded. To maintain the efficiency in the current infrastructure of the business, the
manager of Puma is trying to develop more skills among their employees so that they can do
better for the existing and future customers of the company. This company is arranging its
business force to reach the only organizational target and maintain its goodwill in the
sportswear industry.
D1 Provide critical analysis of the complexities of different organizational structures-
The complexity of organization refers to the idea by which a company can ensure the
availability of different types of resources and finance sectors for distinct projects. It depends
on the size of any business organization. Many businesses professional have stated the
argument on the concept of organizational complexity (Baghel,2022). With this, they have
come to a decision that if the structure and operational area of a firm are vast, then the
complications and issues within the management and other areas are also equivalent to this
ratio. In the case of Puma, the company is very famous at the global level and this makes it an
international brand (Ndlela, 2019). To stand on the expectations of the people and their
stakeholder’s company has to pick the right decision which is related to any department.
Moreover, the gigantic work structure of the company also represents the nature of
complexity, whether it is in the same functional department or between two sectors of the
business. The business structure which is followed by Puma is U form, and it reduces the
burden on the management concerning the process which might be concerned with the
making of a decision and others. The company has understood the need to adopt the simplest
form of organizational structure, so that administration does not have to face any chaos
between the employees and teams which are working on some sort of projects and business
operations. All and all organizational area of Puma has formed with the inclusion of various
department such as finance, sourcing, and supervisory board, along with the company has
also generated several subsidiaries units which are appointed to handle the local stores and
departments of the business. The functional structure of Puma is very helpful to analyse the
current competitive trends in the market, in addition to this, it has been observed that the
company has promoted several improvement strategies for each department. This is because
it will give a detailing about the performance of each area and if some kind of setback has
been found by the business, then management take quick decision for solving them. The
structure which has been followed by Puma represents the unity among the business
management. Through this, it becomes very easy for any department to confront any risk

without obstruction in the activities of the administration and work in maintaining a
competitive advantage across the world (Nowacki, and Willits, 2018).
P3 Explain the relationship between different organizational functions and how they
link to organizational objectives and structure-
Firstly, the company is divided into the basis of the functions which are important for
accomplishing the aim. For instance, Puma has marketing, human resource, finance, and
operational activities departments. Talking about the human resource team then the hiring
manager should recruit related people with little regard the sportswear. Apart from this, the
leader of the company should be like this where they can give their best support and
motivation to the people who are working in the firm. Another department of the company is
about the promotion of their product and services in the market. When a company is using
strategies like packaging, promotional medium, and brand value related then it is concerned
with marketing (Penco, Torre,and Scarsi,2019). This helps in stimulating the presence of
Puma company in the global market by which the firm can achieve a large market section and
select the target market according to the convenience, and attributes of the goods and
services. To procure the funds and cash inflows in the management of the business
organization, the financial function has been taken into consideration. The connection of
these functions with the objective of the firm is that changes and modifications in this depend
on the graph and the overall journey of the management towards the goals of the firm. If the
objective of Puma company is to attract more and more customers for its sportswear and
other services then, it mainly focuses on the marketing function of the business (Ayadi,
2019). As it is the only method by which a company can make sure that the product which is
being offered by them to customers is up to the mark. It gives the necessary or crucial
information about the products which is being produced by Puma’s manufacturing unit, along
with this it also supports setting a pricing base for these outputs as well. This company should
know that decisions regarding the value of the services must be budget friendly so that every
other individual from that different level group can afford this. Moreover, the functions of the
business also help in deciding the other short terms goals of the business. While the company
works to achieve these short-term goals then it automatically reaches up to the long-term and
main objectives of the firm. Like marketing, other functions of Puma company also help in
the formulation of strategy for the growth of the business in the market.

M2 Analyse the interrelationships between organizational functions and the impact that
can have upon organizational structure-
The activities of the business which contribute to the revenue generation of the firm,
are known as the organization function. These activities are comprised of different functional
areas which are further divided into departments. Respectively these departments are
subdivided into other sections and these members have been allotted according to their
knowledge and skills about the work which is necessary for the accomplishment of the
objectives which have been decided by the leaders for each department in the firm. The
organizational structure runs in a proper systematic format where the higher department gives
order or command to the depart which is running or working by their guidance. This has
made various changes in the firm while functioning on any type of important project.
Furthermore, organization function is the only medium by which a company can form its
overall infrastructure and allot the work according to that. In Puma, the company has
formulated its structure as per the requirement or need of the function to produce the
sportswear and other things with which the firm is dealing. Furthermore, these organizational
function helps in making the various policies for all the departments of the company.
Management of Puma has made it clear to all the employees who are working in the different
departments that all the activities which are performed by them must abide by all the
protocols of the business firm. The reason for this is that management knows that any
mismanagement in the company may lead to the failure of the business. In order to, avoid
such hectic phases company is working on making the best workforce and promoting its
functional area for the betterment of the business in the firm. In the last, some years company
has maintained its functioning by enhancing the advanced platform in the business (ARAS,
and YAZGAN, 2022). Such improvement has allowed the firm to make new possibilism by
which the company can bring the necessary modification in its overall functionality, along
with the skills improvisation of the employees as well. By facilitating the uniqueness in the
operation of different functional areas, Puma itself contributes to the expansion of its business
framework. This will help the firm in making the right plan of action for the opportunities
which has the potential to bring a high rate of profitability to the firm. So, there are enormous
changes which the functional area of the company for the structure of the company.
Conclusion
The above report went into a detailed discussion on the meaning of organizational
structure and the number of the framework in which the company is operating in this. This

report has disclosed the roles and targets for which the business industry has been divided
into their different formats. Organizational structure helps in finding out the business
procedure and which kind of skills among the laborers are required so that companies get the
chance to reach their only target for which the firm has been established. When a company is
distributed in different structures then it should also support making the range and extent by
which a manager can increase their business conventions. By this, an evaluation has been
conducted by which it has been analyzed that several issues can be confronted by the firms
while working in their sector. In the conclusion of this report, functional activities which have
been operated in the firm are the result of the objectives which the management set before the
establishment of the organization. Along with this, organization functions also coordinate
with each other and build the success of the firm with smooth functions and profit earning.

References
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