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Micro and Macro Analysis of Puma: SWOT and PESTLE Analysis

3799 words (15 pages) Business Assignment

30th Nov 2020 Business Assignment Reference this

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Introduction

Inside as well outside environment of business consist of elements which has influence on management, workers as well clients and company’s performance is known as environment of business. Company sustained status is improved by studying environment of business. Organization study business environment to identify can help in improving the sustainability of the company. Micro as well macro elements of environment of Puma will be elaborated in this study. For identification as well influence of elements Swot as well Pestle analysis will be considered.

Part 1

Explain different types and purposes of organizations; public, private and voluntary sectors and legal structures

To perform different activities of business, individuals as well group of people make use of mediums as well various channels. Various kind trading firms exist these have varied disadvantages as well advantages. e.g. main benefit in terms of liability that is limited, Red level tape is easy for operating as well set up is. various kind of business firms are discussed in details below:

Private company

Private organization is run privately by a small team of people. NGOs can also run them. Companies of public who have exchange as well security commission and are tough and not fulfilled by these private firms. These firms can comprise of shareholders, as well private company can issue stocks, whereas IPO (initial public offering) do not offer Stocks and public exchange do not trade in shares of stocks (Wetherly and Otter, 2014). Determining value of share is hard and private company shares are liquid. Main goal of such firms is det along with strategies of communication plan of marketing as well policies overall. Confidential data is not shared with public because of rules as well regulations observed by these companies. Transparency in finances is also restricted by such rules.

Public Company

Shareholders developed private firms, organization as well owner is regarded as different entity. Nations stock exchange is responsible for registration of private company. IPO is responsible for issuing securities in private firms. Trades of day today decides company’s value in market, whereas fewer shares may float in starting state of company. Major focus of public firm is development of a business profile of good standard capital access as well value provision to shareholders (Wetherly and Otter, 2014)

Charitable Organization:

For a better as well-developed society individuals work together in groups in non-profit organizations as well firms that work on charities. religion, education as well humanity are main focus of these firms and they are different from others. Profitable organizations provide donations to these firms. They concentrate on advancement of religion; society benefits as well for poverty and sickness reduction.

Legal Forms of the company

1. Sole proprietorship

Only an individual is liable to own, profits rights, paying debts, control. Personal trader work in a setup that is very convenient and where everything belongs to him only.

2. Partnership

Mostly group of people which comprises of two to twenty owned this kind of business. Two various kind of partnership is involved here, one is general where there is equal control of both parties on business, another is limited one where only either of party have control overall. Daily management is not looked after by one partner while investment in business is equal for inactive member. Funds as well structure related, there exist a status that is dual structured by partners (Sethi, and Guisinger, 2002)

3. Limited liability company (LLC)

Partnership benefits related to tax are allowed as well enjoyed, because of structure that is hybrid in shrink liability, that allow partners, trade owners as well shareholders to limit their own liabilities. Protection is given to members in terms of own liability from debts, that isn’t evident to be unethical, illegal as well irresponsible through performed activities, according to LLC. Individuals efforts are behind running of limited privates as these are these are of various sizes.

In such firms’ individuals become shareholders after purchasing of shares when they are offered to them. With state collaborating, such firms get developed as well established (Sethi, and Guisinger, 2002)

Explain the size and scope of a range of different types of organisations

Puma

One of organization that is private is Puma. Accessories, shoes as well attire are part of puma production, and SE Puma is involved in sports sale items of lifestyle related to sports. Headquarter o Puma is in Herzogenaurach (Germany) whereas on 1st October 1948, Rudolf dassler founded this company (Business Insider, 2018)

Various items of lifestyle related to sports like accessories, shoes, attire is marketed, developed, designed as well sold by PUMA. Various sections like, motorsport, training as well running, football as well golf items are offered by it. For manufacturing, designing, developing as well selling of watches, glasses as well perfumes it also provide license to partners that are independently authorize e.g. shopping, outlets as well stores are utilize for selling items of Puma. Brand names include Dobotex, cobra golf as well Puma.

AMERICAN RED CROSS

American red cross (ARC) from united states is an organization that focus on its assistance in alleviation of clarity, crises as well instruction.

After World War 1, programmers that were initiated by Red Cross include wellbeing of water, nursing well-being general program, and treatment during emergency during that time a very positive as well affective achievement was accounted in relation to this organization. Red Cross management has focus on veterans, whereas improving company’s related to wiped out look after, preparation of security, avoiding mishap as well nourishing training was major focus as well objective for improving all these related projects (Redcross.Org, 2019)

For fulfilling needs of organization, Red Cross vision reveal that volunteer’s solid system, contribution as well accomplishment need to be considered. Besides hesitation, empathy transformation, company is prepared as well arrange for calamities.

NHS:

NHS is operated from UK; it is system of health funded privately. They make sure to attain outstanding results for coming generations, individuals, and societies as well communities through using effective public valuable resources, as well high standards of health services are delivered. Majority of health services that include emergency care, daily checkups with excepting few services rest all are provided to general public of UK without any cost, because its main focus is to provide health services to everyone belonging to all socio-economic class.

P3 Explain the relationship between different organisational functions and how they link to organisational objectives and structure.

Organizational structure

Set of policies as well some rules and regulations are incorporated in structure of organization together with rules directing various responsibility that the firm coordinates, control as well collect.

Divisional Structure

When company is expanded for offering services as well items to varied clients,markets of varied types are served by them as well items of various kinds are provided,then adoption of structure which is divisional is follwed. In the divisional structure, the company forms divisions based on the demand of a product, markets, and customers (Bush, 2018).

Matrix

Divisional as well functional frame mixed and give rise to structure known as Matrix, where workers are divided into operated perspective of two types. Large companies adopt this respective structure as its nature is complex and cannot be followed by all small firms.

Organizational function

Different types of functions such as IT, sales as well marketing, operation, HR, finance, development as well research, customer care services are some operations that the organizations consider as well perform

In order to full fill a client expectation, between market and organization a link exist which is named as marketing. Firms like Puma make their clients aware in respect to their items by using plans of marketing. For developing innovative items, company gets required details by following research of markets. Competitive strategy of pricing is followed by PUMA, whereas its items as well services are accessed easily by clients. Because of higher demand, in UK Puma has generated increase profit as well its business has expanded a lot (Ceribeli, et. al., 2010).

important information with respect to firms’ financial functions are provide by finance function, function of finance in Puma is concern to utilizing resources of organization for different process. According to budget of various departments, resources of finances are measured as well funds are allocated by finance function. flow of cash as well business requirements because of enough funds are also ensured by it. Departments performance is monitored by internal auditor. Whereas, company’s daily transaction is track by accounting. Sales, external as well internal usage of resources and purchase are types of transaction.

for achieving high rate performance as well higher efficiency, therefore, HRM at Puma focus in managing workers. Appraisal of performance, designing job, development as well training, reward, selection as well recruitment are some of duties of management of HR (Daniels, Radebaugh and Sullivan, 2015)

Puma is presented to firms that are outside because of its production function. Smooth running of company is ensured by department of operations.

Strategic plan of corporate action support as well implement objective of corporate at Puma. Different functions of organization are involved in this plan. Responsibility as well ownership of plan is taken and prepared by managers of higher rank. Manager give information that is use in preparation of sub task with strategic plan of corporate action for management of functions, leadership of bureaucracy is followed by Puma. Workers are required to achieve goals by following strategy that is decided as well developed by managers by following specific style of leadership (Daniels, Radebaugh and Sullivan, 2015)

Part 2

Identify the positive and negative impacts the macro environment has upon business operations, supported by specific examples

Items related to various kind of sports are manufactured by an international German base company named officially as PUMA. Two brothers Adolf and Rudolf Dassler, formed Gebruder Dassler Schuuhfabrik in 1924. Both decided in 1948 to split because of deterioration in relationship, whereas Adidas and Puma were formed as different companies as a result of this.

Company has sponsor renown football players like Johan Cruijff, Maradona, Gianluigi Buffon and many more as it is famous for its footwear in football. During 1968 company introduce footwear for suede basketball that is outstanding manufacture of it in UK.

Rudolf Dassler register the company originally as RUDA, however change it later to Puma 3:31, after splitting form brother. During 1948, first logo of company comprises of a beast jumping through a d as well square.

Amy grabbers as well Lamine design sports clothes as well footwear for company. During 1996 in UK, activities of Puma are intense. America professional football as well basketball teams 25% making of clothes is owned by Puma. PPR French group of luxury, PUMA AG has been its part from 2007.

Political Factors

Major aim of company is to start their strategy for making it profitable. For this, financial strong foundation needs to be building up. Company account practicing has experience major changes. Various kind of political elements are noted during restructure as well change process. Environmental problem is one of them. Whereas, in relation to problems of environment, more people as organizations are focused on them. For maintaining ongoing development, various local as well international laws need to be focused because of reality that company will outsource from other nations. Some other political elements consist of tariffs as well restriction trade. Company is following Nike as well adidas strategy in production outsourced in Asia.in comparison to America and Europe, Asian nations provide low cost for taxes as well workers, that is main reason of production outsourcing.as company is multinational and is widespread worldwide is producing as well selling its items, company’s performance may get affected by political instability (Wang, Tsai and Tsai, 2014)

Economic Factors

Process of development in company may get influence by other connected economic as well political elements. Germany economic condition with respect to stock exchange as well issues of monetary is present situation there. Partner nations trends as well condition of economics is of great importance as well that of economy of home. because of this political element influence is much more on mentality of clients.in various nation varied laws of employment should be taken care of as cultures of every nation varies that has effect on their companies in terms of HR as on their beliefs towards employment.

Social Factors

In the world of sports, a noticeable change exist, that is trends of lifestyle. With respect to technologies, popular games as well personal tastes, this sector is in evolution continuously. (Plunkett Research, Ltd 2008).various sports are getting popularity. Various games like extreme bike, skate boarding as well diving, these are contemporary and are popular, are of great importance in management of sports in companies as well in making strategy.in last few years, women are participating more in sports ,therefore their importance needs to be considered and fulfilled.it is evident form female athletes playing alone in fields.33% women in high school in USA are playing sports even women participation in sports has elevated three times in universities. Women are almost in every sport now a days (Contributor, 2018)

Technological Factors

Internet related functions like modern technologies, automatic applications and activities of R&D are focused factors in relation to technology. For development, technology is taken to be in motion, whereas development is also get affected by technology’s maturity.as operation of company exist throughout globe, therefore communication in terms of worldwide is one more major prominent factor. Property related intellectual problems are also of great value for considering various laws (Boddy, 2014)

Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses

Strengths

  1. Approximately 8300 workers are recruited globally by Puma as well it exists in almost 90 nations
  2. NASCAR as well Formula one footwear as well racing attire are mainly manufactured by Puma.
  3. BMW as well Ferrari are few renown companies that are partners of Puma.
  4. Development and research group of Puma is very strong as well brand has proved to innovative. One such example of running comfortable foot wear is MEXICO 68 for football that consist of screws having innovation of soles with brush
  5. All over globe it has outstanding name of brand.
  6. Strategies of marketing as well advertisement are of high standards which has make items attractive all over globe because of presenting items in a better way.
  7. Teams as well players belonging to various sports are sponsoring Puma in world of sports.
  8. FIFA world cup of football was officially sponsored by Puma (Bocken, 2017)

Weaknesses

Few of weaknesses of Puma are described below.

  1. In comparison to Adidas and Nike, shares in market are limited as well tough for Puma.
  2. Having that are loyal is tough because of switching in high brands.
 

Opportunities

Few of opportunities in SWOT Puma analysis is below.

  1. Because of frequent events in sports industry, company is able to get more sponsorship.
  2. Lifestyle domain is also been incorporated by Puma.
  3. New clients are added because of advertisement as well branding.
  4. Markets that are emerged, increasing foothold by Puma is required

Threats

Puma SWOT analysis threats are given below.

  1. Recessing as well slowdown of economics, has impact on business of Puma as a brand worldwide
  2. New as well old players in industry, are giving competition to each other.
  3. Losses are faced by Puma because of limitations.
  4. Operations of business are influenced by regulation as well policies of government

Explain how strengths and weaknesses interrelate with external macro factors

Micro as well macro factors of environment are connected with strength as well weakness of organization. Puma is not able to assess macro factors of environment; tactical as well strategic plans are influenced if it failed to consider basic strength as well weaknesses.

Micro as well macro environment are two distribution of environment. Business operations that are been carried out in outside aspects of macro environment are of great concern and importance.in external environment few of important factors are described below:

Import as well export regulations that are altered, are few of political elements which effect strategic position of organization. Puma distribution system is influenced by following factors.

  • In order to gain scale economies, Puma manufacturing plants are provided externally to other countries.
  • Economic elements have great influence on production of items as well services that are produced by rules and regulations of organization
  • For incorporating decisions of management in relation to strategies, factors that are concern with social as well cultural factors need to be taken care of and highlighted.
  • Factors related to technology, comprises of knowledge as well skills that are utilizes as well apply to production.

Few factors that comprises of inside environment are as follow:

For running all functions of business, investors are loaded as well provided with resources related to finances. Policies of finances of organization are influenced significantly by change in interest as well inflation rate.

For puma to operate efficiently as well effectively, employees need to be efficient as well competent because without them it is going to be very challenging.

Puma is required to make amendments in financial policies as well plans of budget because of continuous as well rigorous competition in market which is affecting policies of Puma in regard of war in price (Cumming and Zahra, 2016)

References

  • Bocken, N., 2017. Business-led sustainable consumption initiatives: impacts and lessons learned. Journal of Management Development36(1), pp.81-96.
  • Boddy, D. (2014). Management an Introduction. 6th ed.
  • Bush, T. (2018). PESTLE Analysis: Economic Factors Affecting Business. [online] PESTLE Analysis. Available at: http://pestleanalysis.com/economic-factors-affecting-business/ [Accessed 20 October 2019].
  • Business Insider, 2018. Puma SE - Profile. [Online] Available at: https://markets.businessinsider.com/stocks/puma/company-profile [Accessed 14 October 2019].
  • Contributor, P. (2018). Internal Factors that May Affect the Business Organization. [online] PESTLE Analysis. Available at: http://pestleanalysis.com/internal-factors-affect-business-organization/ [Accessed 20 October 2019].
  • Cumming, D.J. and Zahra, S.A., 2016. International business and entrepreneurship implications of Brexit. British Journal of Management27(4), pp.687-692.
  • Daniels, J., Radebaugh, L. and Sullivan, D. (2015). International business - Environments and Operations. 15th ed. Harlow: Pearson Education Limited, pp.304, 308, 309, 311, 315, 324, 325, 347.
  • Redcross.Org, 2019. About us. [Online] Available at: https://www.redcross.org/about-us.html [Accessed 24 October 2019].
  • Sethi, D. and Guisinger, S., 2002. Liability of foreignness to competitive advantage: How multinational enterprises cope with the international business environment. Journal of International Management8(3), pp.223-240.
  • Wang, C.J., Tsai, H.T. and Tsai, M.T., 2014. Linking transformational leadership and employee creativity in the hospitality industry: The influences of creative role identity, creative self-efficacy, and job complexity. Tourism Management40, pp.79-89.
  • Wetherly, P. and Otter, D. (2014). The business environment. 3rd ed. Oxford: OUP, p.190.

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