The decentralized structure is reflected by the way Puma operates from three headquarters in Germany, the United States, and Hong Kong. To conclude, PESTLE analysis is considered as an effective tool of planning and it offers viable and effective technique foranalyzing and scanning the operating environment of an organization. Puma SWOT Analysis Puma Strengths Below are the Strengths in the SWOT Analysis of Puma: 1. Which areas are in need of immense attention? The US headquarter has the responsibility of marketing activities of the company. If the number of buyer are limited or each of the buyer purchases large quantity relative to the size of the suppliers. Sports sponsorship as distinctive competence. Many times, under the case analysis, the purpose of the problem statement is to improvise the current state of the organization through pursuing innovation or other changes. This market study presents basic data and true figures about the market giving a general assessable analysis of this market based on market trends, market drivers, constraints … Nevertheless, Puma focuses on three segments of brands; Puma brand, Cobra Golf brand and Tretorn brand (Bloomberg Business Week, 2011, p.1). Puma is among the branded companies who have developed competitive advantage in the global sports equipment market. Current asset turnover:it measures the current asset level that is require for supporting sales. In Addition it is also needed to be considered, if the given option or the alternatives have the right alignment with the organization and re offering value. Sheehan, C., Nelson, L. & Holland, P. 2002. The global sports equipment in industry consists of many strategic groupings including those companies that deal with general leisure products, recreations products, specialty brands and private labels. Canada Newswire. Thus is important as to allow the organization. New York, NY: McGraw-Hill Company. Also, it offers the specific insights to the management in understanding and looking at the factors that have been hidden from the management sight, effecting the performance slowly and gradually. The % change in sales invocates that how rapidly or quickly the sales has been growing over the period of time, thus leading to answer the question regarding growth in relation in competitors and general economy. It is a deficiency or limitation of resources, capabilities, skills that majorly affect the organizations effective performance. This weakness has been linked to the recent decline in revenues, especially during the 2007 to 2009 recession. The research report provides analysis and information according to categories such as market … High threat of substitute leads to low profitability as it limits the industry profits by placing a price ceiling due to the fear of being substituted by other product. In particular section, the management/teams develops different options through which the problem can be resolved. As it can be difficult to group the companies having similar business lines and to call it an industry. In other words it means the aspects in which the organization is less efficient and needs to improve in order to align with the market trends. Theratios are sub-divided into the major groups that tend to cover the financial areas. We remain … Apart from this the size and the reputation of the companies that are already operating in the market also play an important. IvyPanda. Oxford, UK: University Press. The recommendation is mad in away, that not only offers the solution the problem, but also depicts the implementation process and the course of action that the organization needs to take in order to be successful. PESTLE analysis is a framework which is imperative for companies … Shareholders to clearly understand what is required to done, how it is required to do, who are the key player and how it will be implemented. & Rieple, A. However, Puma is a recognized brand with high reputation in the markets the new entrants are targeting. There percentages are most likely providing analysts or managers with the fast or rapid way for finding key issues or problems. In short, it provides the basis to company’s executive, analysts and manager of making the company profitable in forthcoming years (Helfert, 2017). IvyPanda. These businesses are a source of important threat to Puma SE in terms of alternative products. London: The Free Press. This brand equity allows the company to secure a relatively large share of the footwear market: about 3% as of 2010 (Puma, 2010, p.90). The success factors should be directed to the customer satisfaction especially. The increasing number of women in sports should be taken into consideration. It is encouraged to be consider especially for a projects that are large and complex in nature. When compared to the industry leaders, Puma’s distribution system lacks efficiency. Puma produces its sport products at low cost and distributes them over a broad network. European Journal of marketing, Vol.33 (3/4), pp.250-272. These factors are important to be mentioned in the recommendation, in order to make itr strong and firm and allow the stakeholders/reader to connect the problem and solution, leading to better understanding. The Basic idea of the Puma … In other words, the analysis keep focusing on the past performance evaluation in terms of profitability, liquidity, growth potentiality and operational efficiency. Etc. The Hong Kong headquarters are responsible for the Asian operations and primarily deal with production. It is noteworthy, that the charities needs to be included where a government are not willing services and goods to be provided. There is no doubt that the quarterly growth of 2.7% in the first quarter of 2011 is a result of the new segments the company is realizing through the sponsoring activities (Puma, 2011, p.4). For instance; which are the areas of company getting stronger or weaker? The value factor analysis of the organization gives an eye opening view to the management and also offers the solution on where the organization may build the market utilizing the area value creation factors. Powerful buyers could flip the side of the powerful supplies by forcing the prices to move downwards and by demanding high quality and services by creating a competition between the participants in the industry on the basis of price and quantity. It is a strategic tool that is used to avoid or minimize the risk of losing the competitive edge that the organization has and to ensure the profitability of the products in the long run. As stated by the former Chief Executive Officer Jochen Zeitz, Pumas’ organic growth strategy ensures the positioning towards full brand potential (Puma, 2010, p.6). The database is updated daily, so anyone can easily find a relevant essay example. Indeed, the company has taken a step further to support the people who provide with raw materials such as cotton farmers in Africa. Combining these factors, it last greater and inevitable impact on organization. Return on equity (ROE): This performance measuring parameter measures the return that the company has earned in relation on the owner funds. Overtime, the changes might be occur in less than one day, therefore the companies should make it tricky in order to predict how and why these forces might influence the future or present of the certain project. Contribution analysis: this analysis is mainly used for the internal organization’s management, even though it is increasingly applied in broader analysis of financials, it includes relating sales to the individual product group’sor total business contribution margin. And will it make the organization sustained in the changing market situation. 2011. It is in the favor of the companies that exist in the market to create barriers for the new entrants to prevent them from entering into the industry. Once it is done, each alternate is compared against each other and with the decision criteria develop, and are given different weigtage. Puma SE Company: Strategic Management Analysis, Pepsi and Coca Cola Companies Vision Statement, Harvey Nichols Company's Competitive Advantage, The German Sportswear and Sports Footwear Industry, Daisy Roots Children Shoes Market Strategy into the global markets, The Frito-Lay Company Environmental Assessment, Faber-Castell Company Operations Management. Apropos the technological dynamics, Puma concentrates more on the research and developmental undertakings and similarly on the applications of mechanization, particularly those allied to the information technology. Luckily, the company has its own distribution network which comprises of many branded concept stores, factory outlets, and online stores. Research and markets: China sporting goods industry. Human resource activities include managing more than 9,313 employees, environmental groups, acquisitions risks, and labor councils. We will write a custom Report on Puma SE Company: Strategic Management Analysis specifically for you for only $16.05 $11/page. Stock analysis for Puma SE (PUM:Xetra) including stock price, stock chart, company news, key statistics, fundamentals and company profile. 23 May. Management capabilities, Facilities, financial resources, marketing skills and the weak brand image can be the sources of weakness. The other tools used are Porter’s 5 forces for the external environment. hence ins uh cases, the direct problem is no the ultimate organization factors but the process implementation that is needed to e in lace, in order to bring change , avoiding the upcoming risk and hence sustaining the competitive edge in the market (Spradlin, 2012). The sports equipment market is characterized by stiff competition which offers buyers high bargaining power. 2004. ensure the integrity of our platform while keeping your private information safe. This corporation has won recognition among the elite and older individuals through its Cobra Golf division that sponsors golf events across Europe. The product being offered by the suppliers are highly differentiated. Phatak, A. V., Bhagay, R. S. & Kashlak, R. J. Perhaps, it is important to involve other members to take the active feedback on the alternatives, in order to gauge the value of the alternatives and the value it may offer to the organization in the long-term. High competition is a big threat for Puma. The Germany headquarters has the obligation for European market and is mostly concerned with global administration. It is effectively used in building strategies for the organization to maintain its competitiveness in the market. The political factors may involves environment regulations, employment laws, tariffs, tax policy, trade restrictions, political stability and reforms. The Puma economic factors or forces involves interest rates, inflation, and growth of economy, cost of living, working hours, wage rate and exchange rates. The social factors includes safety and health consciousness, various demographics, population growth rates and cultural aspects. Also, the purpose of the problem statement is to describe the external environment and its effect on the overall organization in short and long-term. An organization should innovate and be compatible with the technologies. Nike, Inc. Situation Analysis. Analyzing the Australian fashion industry according to Porter’s five forces. This stock market technical analysis blog has been live since October 2009 (over 10 years), providing unbiased stock market technical analysis … The analysis conducted suggests that Puma has a number of opportunities that arise in the growing economies as well as challenges posed by the stiff completion. It can be used for examining the business operations from the variety of perspective for determining the ways that can be used to strengthen the business and understating the greater financial condition or situation. Powerful suppliers possess more power to capture significant value for themselves by demanding high prices while limiting the quality and the quantity of the product or services or by transferring the cost on the participant of the industry. 2011. Differed taxes in 2010 added up to 50.7 million Euros, which constituted an increase of 2.1% when compared to the financial year 2009 (Puma, 2010, p.110). The ration lay under profitability are discussed below; Return on assets (ROA): it is one of the most commonly and widely used performance measure of an organization. Taxation policies also have a big impact on Puma’s business since they add expenses that reduce revenue though they can also be barriers to entry to the potential markets. Despite Puma SE showing substantial leverage of the market place, the company still lags behind several competitors such as Reebok, Nike and Adidas in terms of the market share. PUMA … Hence, it is suggested, that while developing the alternatives, it is important to consider the realistic and smart nature of options along with the avoidance of developing  such issues that are not offering the right solution or the suggesting such options that are of no use to the organization. The matric can be adjusted for thepurpose of reflecting the average equity amount being employed during the span of year, giving the more accurate and realisticpicture of how the organizationhas been performing throughout the year. IvyPanda, 23 May 2020, ivypanda.com/essays/puma-se-company-strategic-management-analysis/. The effectiveness of the analysis highly depends on the accuracy of the collected data, updates to accommodation changes in timely manner and other tools trimming down the PESTLE limitation to some extent. The inventory amount can be monitored by analyzing day’s inventory ratio. The options developed entails and includes the maximum factor that the organization should analyze or achieve, thus offering great value. Find the best information and most relevant links on all topics related toThis domain may be for sale! Under the evaluation of alternatives the pros and cons of the alternatives developed above are gauged based on the benefits they offer to the organization and also the strengths the carry that may help the oragnation in overcoming the problem. Cost of goods sold and gross margin analysis: in operational analysis the most commonly used ratios involves the calculation of the cost of sales as a percentage of sales. 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