Slide 1: Title Slide
Content:
Title: Environmental Business Audit for Puma
Subtitle: Analyzing Internal and External Business Environments
Student Name: [Your Name]
Student ID: [Your ID]
Unit Number: Unit 1: The Contemporary Business Environment
Speaker Notes: The Puma Environmental Business Report is pleased to have you here. This presentation will examine the internal and external elements that impact Puma's company. The goal of this comprehensive PESTLE and SWOT study is to advise Puma on how to best navigate its complex business environment. This slide will include evaluations of ecological, social, technological, legal, economic, and political concerns. In addition, we will analyze Puma's SWOT (strengths, weaknesses, opportunities, and threats) to propose strategic actions that will elevate the company's position in the market.
Slide 2: Introduction
Content: Puma was founded in 1948 by Rudolf Dassler. It is a globally recognized apparel brand. Over 14,000 employees are working for it in over 120 countries, and 2023, revenues were €6.8 billion. This presentation will examine Puma's business environment through the lenses of the PESTLE and SWOT models. Finding out how Puma's strategic decisions are impacted by macroeconomic and political trends, as well as how the firm may capitalize on its strengths and address its weaknesses, is the primary objective. In the end, Puma will have a better idea of how to stay ahead of the competition and continue growing.
Speaker Notes: Puma is a massive brand that rivals Adidas and Nike in the international apparel industry. This presentation will examine how Puma may address external issues by capitalizing on its distinctive qualities, such as its eco-conscious business methods and passionate brand personality. To determine how the present market conditions impact Puma's bottom line, we will be considering factors including government regulations, economic stability, social movements, and technological advancement. Discovering strategies that Puma may use to maintain and expand its market share is the objective.
Slide 3: Company Background
Content:
Founded: 1948 by Rudolf Dassler
Headquarters: Herzogenaurach, Germany
Global Reach: Operations in over 120 countries
Revenue: €6.8 billion (2023)
Employees: 14,000+
Mission: To be the fastest sports brand in the world
Vision: Innovate for performance and sustainability
Products: Sportswear, footwear, accessories
Key Segments: Running, training, football, and lifestyle sportswear
Category |
Details |
Target Market |
Youth, athletes, fitness enthusiasts |
Core Competencies |
Innovative design, sustainability, collaborations |
Key Partnerships |
Usain Bolt, Rihanna, Neymar |
Speaker Notes: Puma has a rich history that is built on innovation and efficiency. A leading manufacturer of premium athletic footwear, apparel, and accessories, it has been in business since 1948 and has grown into a global sports powerhouse. Pursuing the title of "fastest sports brand" is Puma's ultimate objective. This is achieved via consistently developing fresh concepts and establishing partnerships with well-known athletes and style icons. There are a lot of firms out there, but Puma stands out because of its emphasis on performance and sustainability and its strong presence in over 120 countries (PUMA SE, 2024). Young, active individuals love it because of its increased brand value from collaborations with celebrities like Rihanna and Usain Bolt.
Slide 4: PESTLE Analysis – Political Factors
Content:
Positive Impacts:
Stable Government Policies: Smooth corporate operations are made possible by the favorable policies in the US and EU.
Trade Agreements: The European Free Trade Association (EFTA) and other trade deals that lower taxes make the supply chain work better.
Negative Impacts:
Political Instability: Supply chain disruptions are caused by the volatility of emerging markets (Abdullah et al., 2022).
Regulatory Challenges: Compliance with various labor and environmental regulations increases operational costs, which is a significant obstacle in and of itself.
Political Factors |
Positive Impact |
Negative Impact |
Government Stability |
Supports long-term business planning |
Political instability disrupts supply chains |
Trade Agreements |
Reduces costs and enhances logistics |
Trade wars increase tariffs and compliance costs |
Speaker Notes: Politics have an effect on Puma around the world. Businesses do well when governments are stable, like in the US and the EU. Trade deals like the European Free Trade Agreement (EFTA) lower tariffs, which saves money and makes things run more smoothly. If countries that are on the rise are having political turmoil, it could affect Puma's supply lines or cost the company more money. To meet new wage and environmental standards, Puma often has to change its business plan, which forces it to spend more money (Abdullah et al., 2022). Changes need to be made to make sure that the situation stays safe and works well in the long run.
Slide 5: PESTLE Analysis – Economic Factors
Content:
Positive Impacts:
Rising Disposable Income: Rising purchasing power in developing economies drives up demand for high-end athletic apparel (Tutor2u.net, 2024).
Stable EU Economy: Builds a solid foundation for long-term financial planning and investing.
Negative Impacts:
Inflationary Pressures: Increasing the cost of raw materials affects making money.
Currency Fluctuations: Currency exchange rates can change quickly, affecting sales and profits worldwide.
Economic Factors |
Positive Impact |
Negative Impact |
Disposable Income |
Boosts demand for premium products in new markets |
Reduced spending during economic downturns |
Currency Stability |
Aids long-term financial planning |
Volatility reduces profit margins |
Inflation |
Encourages consumers to choose high-quality brands |
Increases production costs, impacting pricing |
Speaker Notes: Economic considerations play a significant role in Puma's strategic approach. Puma may expand its range of high-end items in emerging countries when locals there gain better employment and earn more money. People are more likely to make prudent financial choices when the economy of the European Union is stable (Tutor2u.net, 2024). Inflation raises both prices and production costs, which might lead to a decline in demand. Especially in regions where the situation is murky, fluctuations in the value of the dollar might impact profitability globally. Puma must use pricing flexibility and safeguard itself from currency risks to preserve its revenue streams.
Slide 6: PESTLE Analysis – Social Factors
Content:
Positive Impacts:
Health and Fitness Trends: Physical fitness awareness is making more people want to buy sportswear.
Sustainability Awareness: Younger people like products that are better for the environment, and Puma shares their commitment to sustainability (Admin, 2024).
Negative Impacts:
Ethical Concerns: Workplace problems could hurt a brand's image.
Cultural Differences: The need for area advertising efforts will cause costs to go up.
Social Factors |
Positive Impact |
Negative Impact |
Health Consciousness |
Increases demand for sports and fitness apparel |
Overreliance on fitness trends can reduce flexibility |
Sustainability Trends |
Supports brand positioning as eco-friendly |
High costs for developing sustainable products |
Cultural Sensitivity |
Enables targeted marketing |
Misalignment risks alienating certain markets |
Speaker Notes: Puma's approach focuses on social issues that have to do with health and the environment. Because of the focus on health and exercise around the world, there is more demand for Puma's gear. Young people like buying items that are good for the environment, which fits with Puma's approach to the environment. If some production sites do illegal things with their workers, it could hurt the Puma brand's reputation. It might be pricey to do regional marketing because each market has its own culture. This is what Puma needs to know about these social factors if it wants to improve its brand image and relationships with customers.
Slide 7: PESTLE Analysis – Technological Factors
Content:
Positive Impacts:
Product Innovation: Improvements in technology help make high-performance clothing possible.
Digital Expansion: E-commerce platforms boost revenue and market reach.
Negative Impacts:
High R&D Costs: Staying ahead in innovation requires continuous investment (Duarte et al., 2020).
Cybersecurity Risks: Higher risk comes with having a bigger online profile.
Technological Factors |
Positive Impact |
Negative Impact |
Product Innovation |
Enhances product quality and performance |
Requires significant R&D investment |
Digital Platforms |
Expands reach and customer engagement |
Cybersecurity risks threaten consumer data safety |
Speaker Notes: Because technology has improved, Puma has been able to make high-performance clothing. Since the business started making smart fabrics and biodegradable materials, their products have gotten better. Using internet platforms, Puma can now get in touch with people all over the world. Consumers are more worried about hacking because Puma is online, which could lead to the theft of personal information. To keep coming up with new ideas and doing well in a market that is driven by technology, Puma needs to solve these technical problems.
Slide 8: PESTLE Analysis – Legal Factors
Content:
Positive Impacts:
IP Protection: Strong intellectual property laws protect Puma's name and designs, which helps the company keep its image as a leader in its field.
Compliance with International Laws: By carefully following wage and environmental laws, Puma can keep its reputation around the world.
Negative Impacts:
Complex Legal Requirements: Labour laws that vary by area make it more expensive and riskier to follow the law (The, 2020).
Data Protection Regulations: Investing in data protection steps is necessary to follow GDPR and other similar rules.
Legal Factors |
Positive Impact |
Negative Impact |
IP Protection |
Prevents brand imitation and enhances brand equity |
Enforcement is costly and complex |
Labor Law Compliance |
Strengthens corporate social responsibility |
Varying regional regulations increase the complexity |
Data Protection |
Ensures consumer trust |
High costs for data security and compliance |
Speaker Notes: Legal issues have a big impact on Puma's business. For example, they help the company protect its intellectual property (IP) and follow laws about work. Strict rules about intellectual property allow Puma to keep its designs secret and stop others from copying them. But it is especially hard and expensive to put these protections in place in places where the justice system isn't strong enough (The, 2020). Additionally, following various wage laws makes operations more difficult, and strict data protection rules like GDPR require ongoing investments in IT infrastructure. Successfully resolving these legal conflicts is important for keeping Puma's image and lowering legal risks.
Slide 9: PESTLE Analysis – Environmental Factors
Content:
Positive Impacts:
Sustainable Product Demand: Consumers want more and more eco-friendly products, which is why Puma has a green plan.
Green Initiatives: Puma has become well-known for its efforts to use recovered materials and lower its carbon footprint.
Negative Impacts:
Climate Change Impact: Unpredictable weather trends mess up supply chains and raise the cost of making things.
Environmental Regulations: Companies face higher expenses as a result of stringent environmental regulations.
Environmental Factors |
Positive Impact |
Negative Impact |
Sustainability Trends |
Enhances brand value through eco-friendly offerings |
High investment costs for sustainable innovation |
Green Initiatives |
Improves customer perception and market share |
Meeting regulatory requirements can be costly |
Climate Impact |
Encourages resilient supply chain practices |
Disruptions lead to higher production costs |
Speaker Notes: Environmental issues are important to Puma because more and more people want items that are good for the earth. Some people care about the environment like Puma because it uses reusable materials and lowers its carbon footprint (Jennifer Xiaopei Wu and Li, 2019). Supply chains are at risk because of climate change, and the cost of making things is going up. For strict environmental rules to be followed, big investments must be made in eco-friendly technology and long-lasting methods. Staying within its budget and following environmental rules are important for Puma if it wants to make money in the long run and protect its brand.
Slide 10: Traffic Light Chart for External Analysis
Content:
Competition Level: High (Red) – Strong competition from Nike and Adidas limits market share.
Investment Opportunity: Moderate (Yellow) – Potential for growth in digital and sustainable product lines.
Legal Complexity: High (Red) – Complex regulations in different regions increase compliance costs.
Funding Activity: Low (Green) – Stable funding supports ongoing R&D and marketing efforts.
Criteria |
Rating |
Rationale |
Competition Level |
High (Red) |
Intense rivalry with Nike and Adidas |
Investment Opportunity |
Moderate (Yellow) |
Growth in digital and sustainable segments |
Legal Complexity |
High (Red) |
Varied regulations complicate global operations |
Funding Activity |
Low (Green) |
Sufficient funding for R&D and expansion |
Speaker Notes: These traffic lights show how outside factors affect Puma's strategy. Low levels of competitiveness (red) mean that Puma doesn't have a big part of the market because Nike and Adidas so strongly compete with them. More digital platforms and long-lasting goods are expected to come out, which means there will be fewer business chances (yellow). Regional differences in rules make processes more difficult (red). According to Puma, continuous finance (green) helps the company reach its growth and research and development goals, which in turn helps it grow and fight (The, 2024).
Slide 11: SWOT Analysis for Puma
Content:
Strengths:
Strong brand identity and global reach.
Focus on sustainability and innovation.
Weaknesses:
Limited market share compared to Nike and Adidas (StrategyPunk, 2024).
High reliance on third-party manufacturers.
Opportunities:
Expansion into new product categories like athleisure.
Growth in digital platforms and e-commerce.
Threats:
Intense competition from established brands.
Potential supply chain disruptions due to global uncertainties.
SWOT Factors |
Details |
Strengths |
Strong brand recognition, sustainability focus |
Weaknesses |
Smaller market share, reliance on third parties |
Opportunities |
Digital expansion, new product categories |
Threats |
Competition, supply chain uncertainties |
Speaker Notes: Based on Puma's SWOT analysis, these are the company's strengths, flaws, chances, and dangers. Puma stands out from its rivals thanks to its signature style and dedication to environmental protection. Its market share is lower than both Nike and Adidas, which is a downside. Do more business by joining new product categories, like sportswear, and using digital media. Challenges for its world business include tough supply chain problems and a lot of competition. Puma's growth plan will be mainly about solving these problems and getting the most out of opportunities and strengths (StrategyPunk, 2024).
Slide 12: SWOT Analysis for Competitor (Nike)
Content:
Strengths:
Market leader in innovation and brand loyalty.
Extensive product portfolio and global reach.
Weaknesses:
Higher price points may limit accessibility.
Recent controversies affect brand image.
Opportunities:
Expansion into wearable technology and digital innovation.
Growing athleisure trend.
Threats:
Strong competition from emerging brands.
Increasing regulatory pressures on sustainability.
SWOT Factors |
Nike’s Position |
Strengths |
Innovation, strong brand loyalty, diverse portfolio |
Weaknesses |
High prices, recent controversies |
Opportunities |
Wearable tech, athleisure trend |
Threats |
Emerging competitors, sustainability regulations |
Speaker Notes: Nike's SWOT study helps us understand the competition situation at Puma better. Goods that are different from each other, strong brand loyalty, and new goods are some of Nike's strengths. It's been bad for the company's reputation lately, and the high prices may turn some people away (StrategyPunk, 2024). Nike might want to look into athleisure and smart tech. Different companies and government agencies are a threat to it. Puma can stand out and do well in the market if it knows where Nike stands in the competition.
Slide 13: Interrelationship of Internal and External Factors
Content: The need for eco-friendly goods helps Puma be more creative and remain sustainable. Damage from outside risks, like supply chain delays, makes problems worse, like relying too much on third-party makers. Puma needs to match its strengths with external possibilities and put in place risk reduction strategies to effectively handle these interdependencies (Wardhani and Dini, 2020).
Internal Factors |
Impact |
External Factors |
Sustainability Focus |
Aligns with growing eco-friendly trends |
Sustainability Trends |
High Production Costs |
Vulnerable to economic downturns |
Economic Instability |
Speaker Notes: The internal and external of Puma are tied to each other. Puma has an advantage over its competitors because it emphasizes sustainability, which fits with the growing trend of consumers who care about the environment. Although it depends on outside makers, it can be affected by problems in the supply chain that come from outside sources (Wardhani and Dini, 2020). Addressing these connections requires strategically aligning internal strengths and exterior possibilities while lowering flaws and risks at the same time. With this knowledge, Puma can make plans that are strong and flexible enough to adapt to changes in the outside world.
Slide 14: Critical Evaluation of Impact
Content: The way Puma plays is affected by both PESTLE and SWOT analyses. But changes in society and the environment mean that businesses can grow, even though they have to deal with political and legal problems (Cityu.edu, 2024). Market share is still hard to get, but brand value and longevity give a company an edge over its competitors. If Puma wants to take advantage of outside chances, it needs to work on its problems and weaknesses through planned projects while building on its strengths.
Speaker Notes: This study examines Puma's strategic situation using a mix of PESTLE and SWOT analysis. Politics and the law are making things hard for Puma, even though the company has a strong brand personality and a long history (Cityu.edu, 2024). To deal with these problems successfully, Puma needs to be able to adapt its tactics so that it can use its strengths, seize chances, and reduce its flaws. With this well-rounded method, Puma will be able to keep growing and staying competitive in the fast-paced clothing market.
Slide 15: Conclusion and Recommendations
Content: In conclusion, Puma is doing well in the clothing business because it cares about the environment and works with others to come up with new ideas. Many problems need to be fixed, such as fierce competition, broken supply lines, and high costs of production. Puma needs to give these ideas top consideration if it wants to improve its position:
Expand Digital Presence: Increase spending on digital platforms to increase sales and keep customers interested.
Improve Supply Chain Resilience: Build backup sources of supply to lessen the effect of gaps.
Leverage Sustainability for Growth: To meet people's needs, keep coming up with new eco-friendly products and let them know about your efforts.
Strategic Collaborations: Formation of new partnerships to work together on tech-driven and environmentally friendly products.
Recommendation |
Strategic Focus |
Expand Digital Presence |
Enhance e-commerce and social media. |
Improve Supply Chain Resilience |
Develop alternative sourcing strategies. |
Leverage Sustainability |
Promote eco-friendly products |
Strategic Collaborations |
Co-create tech-driven products |
Speaker Notes: Being committed to ecology and new ideas gives Puma an edge in a very competitive business. Ongoing progress requires addressing both internal flaws and foreign threats. More resilient supply chains help lower risks, and having a digital presence helps customers feel more connected. Nike and Adidas are rivals of Puma. To set itself apart from these companies, Puma could make new contributions to sustainability and form smart partnerships. These tactics will help Puma keep its marketplace and take advantage of the growth opportunities in the clothing industry.
Reference
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