Puma's Business Environment: Analysis of Structure and Functions

This report provides an analysis of Puma's business environment, examining both internal and external factors impacting the organization. It begins with a background of Puma, detailing its products, services, size, scope, vision, mission, and organizational and legal structure, along with a stakehold...Read More

Unit 1 Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART-1............................................................................................................................................3
Background of the organization...................................................................................................3
Products and services offered by the Puma.................................................................................3
Size and scope..............................................................................................................................4
Vision, mission and business objectives......................................................................................4
Organisational and legal structure...............................................................................................4
Stakeholders.................................................................................................................................4
INTERRELATIONSHIP BETWEEN FUNCTIONAL UNITS WITH ADVANTAGES AND
DISADVANTAGES........................................................................................................................5
Interlink between different functional units................................................................................5
CRITICAL IMPACT ANALYSIS OF DIFFERENT BUSINESS STRUCTURES.......................7
PART-2............................................................................................................................................7
EXTERNAL ANALYSIS- PESTEL...............................................................................................7
INTERNAL ANALYSIS- SWOT...................................................................................................9
CONCLUSIONS BASED ON CRITICAL IMPACT ANALYSIS..............................................11
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
The growth of the business can be determined by the business environment. The business
environment is concerned with the internal and external environment of the business that
determines the various factors that provides the high impact over the business. This report will
focus on analysing the business environment of the sports industry. There are different types of
sports organizations such as, public, private and voluntary. The public sports industry includes
the sports charities (Čepel and et.al., 2018). The private sports industries includes the sports
retailers and manufacturer such as PUMA and NIKE and the voluntary sports organizations are
concerned with the sports clubs and the sports team such as, London federation of sports and
recreation. The business environment for these organizations are different as the vision and
mission of these organizations are different.
The public sport sector mainly focus on the local and national level. Whereas, the private
sport sector focuses on the local, national and mainly international level. On the other hand, the
voluntary organizations are the social organizations that creates the opportunities for the
localities. This fact-sheet will conduct the analysation of the private sport sector as it performs
the operations over the international platform and consist of the international business
environment. The selected company is Puma for conducting the analysation.
PART-1
Background of the organization
PUMA is one of the international leading firm in the sports manufacturer. The company
was founded by the Rudolf Dassler in 1948. From the past to present the company has achieved
the higher rate of success and proven effective enough in maintaining the satisfaction of the
customers. Also, the firm performs the social aspects towards the society and focusing on
creating the future strategies.
Products and services offered by the Puma
Puma manufactures the sports shoes, sports equipments and apparel. The company is producing
the products for the men, women and the kids as well (Niskanen, H., 2019). The shoes and
apparel that has been design by the company is for the different sports such as, football,
basketball, gym, cricket and so on. The company is mainly famous for producing the shoes. The
footwear, accessories and apparel are the primary products of the company.

Size and scope
The size and scope of the Puma is large in terms as the organization is the international firm that
approaches the large number of distributors and consumers in the worldwide. Therefore, the size
of the company is large in terms. The international business environment makes the impact over
the operations of the company.
Vision, mission and business objectives
The vision of the company is to generate the different categories of sportswear that is consists
with the latest technology. So, this can assure the satisfaction level of the customers. The mission
of the firm is to generate the effective marketing strategies after making a keen observation over
the international business environment (Andal, Suganya and Shree, 2020). So, it can enable the
firm to capture large number of share in the market. The business objective of the company is to
become the fastest sports brand in all over the world. And the company is performing all the
tactics in order to grab this objective.
Organisational and legal structure
The organization and legal structure refers to those patterns that has been adopted in
order to achieve the final goal of the organization. This structure defines the legal consideration
of the firm as well. In terms of organizational structure the PUMA has adopted the dual
management and the supervisory structure. The upper management board of the company is
concerned with the four members while the supervisory board involves the six members. These
members decides the decision-making in the company and affects the internal curriculum of the
organization. The organisational structure of the firm is ensuring the effective working
environment to the workers and enabling the firm to achieve their business objectives.
The legal structure of the firm is comprise with the limited-liability company structure.
The company is a large organisation that performs its operations over the international platform
therefore, the company has adopted this structure (Suwarni, 2019). The limited-liability company
is concerned with the number of shareholders and has the separate existence from their owners.
PUMA has its own brand value in the world by its own name instead of its owner name. The
organization is itself responsible for all the debts and profit.
Stakeholders
Stakeholders refer those individuals or the group of individuals that are highly interested
in the business. As the PUMA is large-scale organization that produces the sportswear. There is a

huge demand for the sports products in the worldwide. Therefore, the large number of the people
shows interest towards the organization and those are considered as the stakeholders for the
company. Here is the description of the Puma's stakeholders.
Suppliers and workers- The suppliers ensures the timely supplying of raw materials that are
needed to create sportswear and the workers ensures the production.
Consumers- The consumers are the major stakeholder for whom the PUMA is producing the
products and assuring the satisfaction.
Trade Unions- As the company is performing their operation over international level therefore,
the trade unions keeps the major focus over the activities of the firm.
Media- Media shows about the new achievements of the PUMA. And also ensures the effective
promotions for the company.
Investors- These are the key stakeholders that helps in increasing the capital base of the
company. It involves the shareholders and debentures that makes investment in the company.
Retailers- These are the distributors of the PUMA that makes the product available for the
customers. The firm has approached the large number of distributors.
Government- It has been considered as the upper authority that makes keen focus over the
activities of the PUMA (Huchzermeier, 2019). It is the major element of the external
environment that affects the operations of the company.
INTERRELATIONSHIP BETWEEN FUNCTIONAL UNITS WITH
ADVANTAGES AND DISADVANTAGES
Interlink between different functional units
The management of the organisation is composed of set of formulations as well as different
operations that are incorporated such that the environment of the organisation would be
maintained on a successful orientation. The business environment in the organisation is
composed of various roles like that of human resources management, finance management,
marketing management, production management and many other factors that are eventually
operating in the organisation within interlinked with each other.

This interlink is to maintain a transparency over the set of operations that are being entitled in the
company such that the internal as well as the external factor would eventually not be the negative
prospect in regard to company's growth. The human resources department in the organisation is
in internal link with the finance department as well as the marketing department in order to make
sure that there is a coordination that is put forth with respect to the employees that are working.
In an organisation like puma it is one of the biggest factor that would help in specialisation and
can also bring about accomplishments in terms of reaching the targets (Nudurupati and et.al,
2021). The finance department as well as the marketing department go hand in hand in order to
facilitate the resources that are to be included with respect to various formulations that will have
to be implemented.
This is because on an account of maintaining financial strategies the marketing purposes as well
as many other purposes of the organisation can be performed on a better orientation. The human
resources management in this regard would eventually co-ordinate with employees that are
working in every department of the company in order to facilitate the functional as well as the
structural components of the organisation.
Advantages:
This functionality will have to be maintained because there are certain advantages that are
brought forth with respect to interrelationship of various departments of the organisation. The
managerial efficiency can be maintained to the brim of being the best which can obviously
increase profits. Every department can function on a better orientation and 100% performance
can be marked with respect to accomplishing the goals. This would bring in a prominent
organisational atmosphere in the organisation which is important for the organisation to reach its
objectives and targets (Möller and et.al, 2020). The negative aspects that are following as a part
of external or internal activities can be targeted and can be evaluated with respect to the
interrelationship that is maintained between the departments of the organisation.
Disadvantages:
The disadvantages that can be highlighted with respect to maintaining interrelationships between
organisational functions will be that projects are eventually managed by different functional
manager where it might cause confusion with regard to evaluation of project. There might be
many conflicts that arise as a part of multiple functions that are taking place. There will not be
any unity that is the created between employees once these interrelationships are maintained. The

employees were dispersed and will not be able to maintain a proper relationship with each other
based on the negative perceptions that are developed. The workplace might turn into a tragic
instance once there is a separation that is brought forth with respect to the employees which is
one of the biggest disadvantages for maintaining interrelationships in the organisation.
CRITICAL IMPACT ANALYSIS OF DIFFERENT BUSINESS
STRUCTURES
Maintaining interrelationships between different functional units of the organisation will end up
bringing about profitable entities to the company. There will not be any negotiations that are
pertaining with regard to the divisional organisational structure that is the in regard to
organisational entity (Hrechyshkina and Samakhavets, 2019). This is because in business there
are certain negotiations that are put forth with respect to the resources as well as the financial
implication that are falling apart. There is a need to understand the onset of every criterion that
falls in regard to the business functionalities and various interrelationship that are created in the
organisation. The targets that are oriented with the organisation with respect to customer base
can be fulfilled in terms of Puma which is one of the important criteria to maintain. The sales as
well as the prominent interactions that will have to be maintained with respect to customers can
be easily enhanced without any negotiations once there is an interrelationship that is fostered in
the organisation. One can easily understand what is pertaining in the organisation and that will
bring about every change that is necessary to be implemented. The innovation prospects that can
be thoroughly and hands with respect to all the functional units of the organisation when
everyone is going on a report to see the different effective settings that are in the midst of
organisational entity. It will also become easy for the management to deal with the growth
prospect regardless of negotiations that are pertaining with respect to organisational function.
The challenges can be overcome weight of surety as well as is or data get that is implemented in
the organisation which can be complementary in dealing with the atrocities of the functional
units.
Voluntary organisations: those that run under the voluntary basis with the help of funs and
initiatives. Eg: Go eco, global citizen and One world.
Public sector organisation: The organisations that are run with the government intervention are
called public sector organisations. Eg: Education sectors, Law enforcements etc.

CONCLUSION
The entire report concludes upon highlighting the aspects that would bring about a Portfolio of
various insides that are a part of organisational entity. This report would eventually bring forth
the market size as well as growth of international businesses that are included in the business
environment. The product as well as the services that are put forth with respect to the
organisational entity with various departments that are the interrelationships or all explained in
this report along with the advantages and disadvantages. A presentation that is put forth in order
to explain the internal and external analysis of the organisation along with the positive and
negative demonstration is being applied to the sports organisation that has been chosen in this
regard.

REFERENCES
Books and journals
Andal, D.V., Suganya, D.S. and Shree, V., 2020. Financial Performance Analysis of Puma.
International Journal of Management (IJM). 10(6). p.2019.
Belas and et.al, 2019. The impact of the public sector on the quality of the business environment
in the SME segment. Administratie si Management Public.
Čepel and et.al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness.
Cherunilam, 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Črešnar and Jevšenak, 2019. The millennials' effect: How can their personal values shape the
future business environment of industry 4.0?. Naše gospodarstvo/Our economy. 65(1).
pp.57-65.
Hrechyshkina and Samakhavets, 2019. Changing business environment in Belarus. Journal of
Geography, Politics and Society. 9(1). pp.1-11.
Huchzermeier, A., 2019. Puma: how sustainability accounting creates a win-win for companies
and stakeholders. The Business & Management Collection.
Krajnakova and et.al, 2018. Effect of macroeconomic business environment on the development
of corporate social responsibility in Baltic Countries and Slovakia. Oeconomia
Copernicana. 9(3). pp.477-492.
Möller and et.al, 2020. Networks, ecosystems, fields, market systems? Making sense of the
business environment. Industrial Marketing Management. 90. pp.380-399.
Niskanen, H., 2019. Sustainability in the sporting goods industry: How Nike, Adidas and Puma
have developed company sustainability.
Nudurupati and et.al, 2021. Impact of the changing business environment on performance
measurement and management practices. International Journal of Production Economics.
232. p.107942.
Suwarni, W., 2019. Obstacles to enforcement of book copyright law in Indonesia based on the
legal structure, legal substance, and legal culture. International Journal of Advanced
Research and Publications. 3(3). pp.153-157.
You and et.al, 2019. Bridging technology divide to improve business environment: Insights from
African nations. Journal of Business Research. 97. pp.268-280.
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Online
Business Environment, 2018, [Online]. Available through: < Understanding the Business
Environment – Introduction to Business (opentextbc.ca)>
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