ZEAL COLLEGE OF ENGINERRING & RESEARCH, PUNE.

ZCOER MBA-I DIV.-A

Subject
Of

Enterprise Analysis & Desk Research (114)

BY
DR. Rahul More Sir

Name :- Shreyas Pravin Vedpathak

Roll No :- 320127
Final Report of Enterprise Analysis & Desk Research
INDEX

1
1. Enterprise History & Background 3-7
1) Establishment 3
2) Original & Current Promoters 4
3) Business Group or Business family to which it belongs 4
4) Vision Statement & Mission Statement 4
5) Brief Profile of the Chairman(CEO, MD) 5
6) Highlights Corporate Social Activities 5
7) Technical and other collaboration 6
8) Recent Mergers & Acquisition 7

2. Organisation 8-15
1) Organisation Structure 8
2) Geographical 8
3) Current Headquarters in India 9
4) Certification if any-ISO/EMS/FDA/CMMI 10
5) Initiatives towards gender diversity 11
6) Initiatives towards social inclusion 12
7) Initiatives towards environment conversation 13
8) Current Talent Needs 14
9) Key highlights of the company’s websites 15

3. Markets 16-23
1) Major Customers 16
2) Customers Segmentation 17
3) Products & Product lines 18
4) Major Brands 19
5) Market Share- Nationally, Region wise, Product wise 20
6) Advertising agency 21
7) Advertising Slogan / punch line 22
8) Logo 22
9) Key alliances in the past 5 year & Impact 22
10) Mergers & Acquisitions 23
11) Disruptive innovation by affecting the organization 23

4. Financial 24-30
1) Data to be studied – tabulated, graphically depicted 24
2) Last 5 year Revenues 25
3) Profitability 26
4) Market Capitalization 26
5) Segment Revenues 27
6) Current market share value 28
7) Annual High & Low figure 28
8) P/E ratio 29
9) Shareholding pattern 30

5. Governance 31-36
1) Philosophy 31
2) Standard & Poor’s corporate governance scores 32
3) CRISIL Rating 33
4) Major awards & achievements of the organisation 34
5) Insider trading issue 35
6) Forward looking statement 36

1. Enterprise History & Background

2
1) Establishment of Puma Sport Pvt. Ltd. :-

Puma Sports Private Limited is a Private incorporated on The company

was founded in 1948 by Rudolf Dassler. It is classified as Non-govt. company
and is registered at Registrar of Companies, Bangalore. Its authorized share
capital is Rs. 1,150,000,000 and its paid up capital is Rs. 1,104,849,660. It is
involved in other wholesale Includes specialized wholesale not covered in any
one of the previous categories and wholesale in a variety of goods without any
particular specialization.
Puma SE, branded as Puma, is a German multinational corporation
that design and casual footwear, apparel and accessories, which is
headquartered in Herzogenaurach, Bavaria, Germany.

First Official Logo of Puma Brand :-

2) Original & Current Promoters :-

3
 Currently, Abhishek is the Executive Director of Puma in India, where
he heads the Sales and Retail functions. Overall Puma has been able to build
a strong & passionate team of 220 people in the corporate office and about
1600 in the Retail stores.

3) Business Group :-
New Delhi: Entrepreneur Rajiv Mehta who launched and grew the German
sports wear brand Puma in India to a ₹ 780 crore revenue company in nine
years from 2006-2014, opened his own sports lifestyle brand.

4) Vision-Mission of Company :-
Puma SE’s corporate mission statement and corporate vision statement are
focused on making the company an industry leader, with emphasis on
sustainability. The corporation’s mission statement establishes what the
business does in the sporting goods industry. In this case, Puma aims for
industry leadership in developing and providing its athletic goods to target
customers around the world. On the other hand, the company’s vision statement
determines the overall strategic direction of the enterprise and its development
as a major player in the global athletic shoes and apparel market. 

5) Profile of the Members :-

 Chairman & CEO :-

Bjorn Gulden(CEO)
In India, Puma operates through a single brand foreign direct
investment route. German sportswear brand Puma on Tuesday elevated
the company's current India managing director, Bjorn Gulden, to general
manager-Southeast Asia & India.

 MD (Managerial Director) :-

4
 Bjørn Gulden (*1965) has been Chief Executive Officer (CEO) of
PUMA SE since July 2013. The Norwegian native has an extensive
international experience of more than 20 years in the sporting goods and
footwear industry. A Business Leader with a successful track record in the
Sports, Lifestyle and Retail space. Bjorn Gulden drives teams with passion
and an immense amount of goal orientation. He believes in achieving long
term business goals and developing people.

6) CSR Activities :-
 Puma's Corporate Social Responsibility
Puma has a major role the sports industry and their Corporate Social
Responsibility could never be better. Their mission statement is rich in
ethical and moral responsibility. Their programs are more targeted towards
the environment and less towards the people. However I think that is really
good, because the environment is more critically endangered than
showering customers and employees with benefits and wellness plans. They
keep altering proactive strategies which meet all criteria of social
responsibility, including discretionary performance. They keep a sociol
economic view in their organization, focusing on broader social welfare as
well as profits.
 Reducing carbon footprints.
 Improving labour policies.
 Participating in Fairtrade.
 Charitable giving.
 Volunteering in the community.
 Corporate policies that benefit the environment.
 Socially and environmentally conscious investments.

The article in the below by Mallen Baker (Foreword, pxvii) highlights the

futility of relying solely on quantitative metrics to capture a firm’s CSR
performance. The comment was initially prompted by a BBC News story,
which reported that Puma was the “first major corporation to publish its
environmental impact costs”.

7) Technical and other Collaboration :-

5
 German sportswear and lifestyle brand Puma has collaborated with
Indian fashion designer Masaba Gupta to launch a limited edition range of
sneakers. True to the global sneaker-head culture of releasing limited
pairs from high-profile collaborations, only 50 pairs of Gupta’s hand-
painted sneakers will be sold in India.
Gupta has designed two lines in this collection addressing the
growing emotional health concerns like anxiety in today’s youngsters.
“Anxiety seems like a curse on this generation and therefore the anti-
anxiety shoe sheds light on this issue. Identity is another issue that needs
to be addressed,” said Gupta, who has collaborated with a brand to design
sneakers for the first time. While this is the first time that Puma India has
collaborated with a fashion designer to design sneakers, the brand had
roped in designer Aki Narula to design an at leisure apparel line for
women almost a decade ago. Puma’s current roster of celebrity faces in
India includes cricketer Virat Kohli, boxing champion Mary Kom and
actress Sara Ali Khan. Masaba Gupta’s Puma range will be sold through
the sportswear brand’s online channel and one flagship store in
Mumbai. Gupta’s fashion label, House of Masaba, also recently raised $1
million in the first round of funding led by Flipkart-cofounder Binny
Bansal.
 PUMA COMPANY Collaboration with Virat Kohli, According to
reports, Puma's deal with Indian cricket captain Virat Kohli back in
2017 was worth ₹100 crore for a period of 8 years.
Later, Kohli himself launched his own brand One8 in partnership
with the German company.

8) Recent Mergers and Aquasition :-

6
 Marketline's PUMA SE Mergers & Acquisitions (M&A), Partnerships &
Alliances and Investments report includes business description, detailed
reports on mergers and acquisitions (M&A), divestments, capital raisings,
venture capital investments, ownership and partnership transactions
undertaken by PUMA SE since January2007.
Market line’s Company Mergers & Acquisitions (M&A), Partnerships
& Alliances and Investments reports offer a comprehensive breakdown of
the organic and inorganic growth activity undertaken by an organization
to sustain its competitive advantage.

Puma has bought out the entire stake of local partner Knowledge Fire
and converted their joint venture Puma India Retail into a fully owned
subsidiary of the German sportswear giant, weeks after receiving
approval for a 100% single-brand entity in India. With the acquisition of
the partner’s 49% stake, Puma also inherits a network of about three
dozen company owned outlets, a person aware of the development said.
Puma and rival Adidas had sought the government’s permission in March
to undertake a wider mix of retailing options, including wholesale,
franchising, own stores and E-commerce, through fully owned entities,
becoming the first among foreign companies to take advantage of
changes that allowed single-brand overseas retailers to sell online as well
as in India.

Puma Sports India, originally a wholesale company that sold products to

franchisees, will now become the main entity that will carry out all the
businesses of the German company. Puma’s global sales increased 14% to
3.4 billion in 2015 and revenue from Asia was boosted by higher demand
for footwear, apparel and accessories from India and China.

2. Organization

7
 1) Organization Structure :-
Puma SE’s organizational structure reinforces managerial control
of processes throughout the business. This corporate structure defines
the organizational design and is represented in the organizational chart
of the company, pertaining to the structural system or anatomy of the
processes and resources in the sporting goods business. This corporate
structure partially imposes limits on how Puma’s organizational
culture is developed and strengthened, considering that the
organizational structural limits may hinder human resource and
organizational development. Nonetheless, the company’s success as one
of the biggest competitors in the international market for athletic
footwear, accessories and apparel indicates how the corporate
structure effectively supports business growth and improvement. Also,
considering Puma’s operations management, the organizational
architecture ensures that the business has the right structural
framework or configuration to facilitate operational effectiveness and
enable competitive advantages. Overall, Puma’s organizational
structure functions as a mechanism for the effectiveness of business
processes and strategic plan implementations.

2) Geographical Foot-Print :-
SAN FRANCISCO, March 20 - PUMA said on Friday March 20
it is reorganizing its global business to create six new geographical
groups, part of an on-going restructuring to bring goods closer to
market and reduce management overlap. Puma's new geographical
areas are North America, Western Europe, Eastern/Central Europe,
Greater China, Japan and Emerging Markets. Formerly the puma brand
used four regions: U.S., Asia Pacific, Americas and an area comprised
of Europe, the Middle East and Africa. Making China its own region is
significant for the Beaverton, Oregon-based brand, as Puma has
recently seen explosive growth in that country, the company's
second-largest market. Sales in advance of the Beijing Olympics last
summer pushed China sales up past 50% in the year-ago third-
quarter. They have since moderated, but puma still expects robust
growth in China. Last month, Puma announced a company-wide
review that could result in a 4% cut in its global workforce of nearly
35,000. The company is looking at all aspects of its business, which
logged $18.6 billion in sales in fiscal 2016.

8
 3) Company Current Headquarters in India :-
Headquartered in Bengaluru, PUMA India boasts of a rich
cultural diversity and a heady mix of energy, enthusiasm and fun. One of
the fastest growing cities in the country, Bengaluru is constantly pushing
the boundaries of urbanization. Known for its cosmopolitan character,
the city houses a dynamic blend of people from all across the country.
Sport has the power to transform and empower us. As the no. 1
sports brand in India, it’s only natural that it also defines our working
culture at PUMA. True to our Forever Faster mantra, we live by the
hustler’s spirit that can be felt across PUMA categories, partnerships and
offices.
At PUMA India, our inclusive culture encourages innovation
through engaged collaboration. We are a powerhouse of diverse talent
and energy. We believe in forecasting a culture of a gender diversity at
puma India. 42% of our leadership team comprises od women, who
have been instrumental in scaling the organisation to new heights. As a
team, we’re passionate about our work and always on our toes to keep
up with the newest trends in sports and fashion. Situated in the heart of
the city at Indiranagar, PUMA India enjoys the best of both worlds with
the most happening cafes and restaurants situated just around the
corner along with the best pubs and breweries making in the night-life
hub of Bengaluru.

4) Certification if any-ISO/EMS/FDA/CMMI :-
PUMA considers Core Suppliers as key partners. They are
selected on a regular, periodic basis through the PUMA Vendor Rating
9
 System. This system is a supplier decision matrix that rates all Suppliers
against strategic and operational parameters including the
demonstration of Vendor management’s commitment to a PUMA
partnership as evidenced by investments and improvements in :-

• Compliance and performance according to the Handbooks

• Quality and price
• Delivery performance
• Customer service

The PUMA Forever Faster Sustainability Handbooks detail the

minimum requirements for all Core Suppliers and Core Supplier
candidates that are expected for compliance (including enhancement of
workplace dialogue and conflict resolution) and management systems.
Examples include :-

• Certified Management systems (ISO 14001, ISO 9001, OSHAS 45001,

and SA 8000)
• Participation in industry schemes such as the Sustainable Apparel
Coalition HIGG Index and/or the ILO Better Work Program
• Following best practices outlined in the Handbooks
• Publishing of Supplier’s own sustainability reports Core Suppliers are
expected to have medium-term plans and appropriate procedures in
place for implementing strategic compliance and improving social
performance in a continuous improvement cycle over time. Core
Suppliers must be able to track their performance against these plans
using Social KPIs. They must also be able to report on these metrics to
PUMA or to any other interested party such as the FLA on an annual
basis, as a proactive step to mitigate social audit.

5) Initiatives towards gender diversity :-

Puma is undoubtedly one of the biggest sports brand in India
right now. The German brand has achieved quite some success in the
Indian market with consumers going completely crazy to own
10
 apparels of the brand. Since entering the Indian market more than a
decade back in 2006, Puma has gone on to establish it as one of the
fiercest competitors in the Indian sports market. At a time when the
market was going through a slowdown, Puma not only managed a 23%
revenue growth in FY19 but also increased the sales gap with its
competitors to over 14%. A large part of Puma’s success in India has
been due to some of their highly creative and successful marketing
campaigns like Propah Lady which featured some strong female
ambassadors like Mary Kom, Dutee Chand and others. The Propah
Lady is a marketing campaign which was released by Puma India in
2019. The campaign goes up against traditional, stereotypical idea of
proper women and tries to reconceptualise it.
Speaking about the strong female presence in their marketing
campaigns, Shreya Sachdev, the Head of Marketing and Strategic
Initiatives of Puma India in a webinar with The Bridge said, “Not just
the strong female ambassadors we hire, Puma as an organisation as
well is probably one of the most gender equal organisations that you
will see today, and the reason behind it is that unlike a lot of other
organisations we don’t really chase gender ratio as a goal. So, I don’t
think anyone at Puma will say let’s hire more women, because that’s
one of the worst things you can do for gender ratio.”
Shreya asserted that it was an early realisation about the
diversity in opinions women bring to the table. This, according to her,
helped Puma a great deal in maintaining the gender ratio in the
workspace. “I think we at Puma realised early on that diversity of
perspectives has been and will continue to be critical to our success. If
you need to ensure that diversity of thought process then you need to
ensure that the ecosystem your employees are working in is extremely
accommodating and flexible which brings out the best in every
employee you hire. We probably have more than 40% gender ratio in
corporate, the leadership team is evenly split and you will see a lot of
women in leadership roles that are traditionally thought to be not
suitable for women,” she said.

6) Initiatives towards social inclusion :-

The Sport lifestyle company PUMA has issued its
fifth sustainability report, giving an in-depth and transparent view of
PUMA Vision, the concept that unites PUMA‘s corporate social responsibility

11
 activities and initiatives, guiding its work, partnerships and engagement
worldwide. The 121-page document covers the reporting period 2007/2008
and has exclusively been published online for environmental reasons. It details
PUMA‘s progress to enhance working and social standards in its supply chain, build
capacity at its suppliers ‘factories, broaden its range of sustainable products
and reduce the company‘s environmental footprint through the PUMA Vision
category puma. safe. It furthermore outlines PUMA‘s activities in supporting
artists and creative organizations through the category puma. Creative and
its initiatives to support global peace through puma peace. The full report is
Vision Sustainability Report is a testament to the fact that we at PUMA do not
simply talk about sustainable development, and CEO of PUMA. ―We are proud
of our successes over the years and of our commitment to sustainability and the
highest ethical standards, but realize that when it comes to corporate
responsibility, there is and will always be room for improvement. Now,
more than ever, we are deepening our commitment and dedicating ourselves
to a strategy that sees the whole ‘as a sum of its parts our PUMA Vision. As
we work towards a safer, more peaceful, and more creative world, we will
continue to expand our outreach as corporate global citizens beyond the boundaries
of business, not only for the benefit of our stakeholders, but for all Highlights of the
visually appealing document include:
• A portrait of the concept PUMA Vision
• A transparent description of PUMA‘s response to the challenges it
faces in its supply chain operations, capacity building projects and brand
collaboration initiatives
• The expansion of PUMA‘s range of sustainable products through Fair Trade
footballs and apparel from ―Cotton Made in Africa
• A detailed account of PUMA‘s numerous initiatives to protect the
Environment, including the progress on reaching targets of a 25%reduction
of energy and water consumption as well as waste creation for offices by 2010
and decreasing its carbon footprint
• An outline of PUMA‘s worldwide activities in cooperation with the
charity organization peace One Day to raise awareness for global peace
• An account of its sponsorship of the art exhibition 30 Americans to
support the work of 31 African-American artists.

7) Initiatives towards environment conversation :-

The Puma Company wants to leave an impression on the track and
the market, in the hearts of our athletes and consumers. In the environment,
however, we are determined to reduce our environmental impact. PUMA`s
12
strategy aims to create maximum positive impact. We do this within our
10FOR25 target framework, which was developed in partnership with our
major stakeholders. Our 10FOR25 targets include Climate Change, Water &
Air and Circularity, among others. We also have a target to regularly publish
our Environmental Profit and Loss Account, the EP&L.
PUMA is training suppliers on resource efficiency practices, for example
with the IFC groups Partnership for Cleaner Textiles Program in Bangladesh.
We have also started to look beyond our direct suppliers and work with our
main material and component suppliers.

The greatest impact compared to the other categories is caused by

carbon emissions

To reduce our carbon footprint, PUMA has set a science-based

greenhouse gas emission target. We aim to reduce our emissions at PUMAs
own entities by 35% (absolute) and the emissions of our supply chain by
60% relative to sales between 2017 and 2030. To realize these ambitious
targets, we have partnered with our industry peers and the United Nations
Climate Secretariat to develop the Fashion Charter on Climate Action, which
was launched at the United Nations Climate Conference in Poland in 2018. 

8) Current Talent Needs :-

PUMA thrives on the energy of our people. So what drives our people
forward makes PUMA Forever Faster. PUMA company culture is unique due
to the people living the brand, while unlocking its potential through their

13
own. Besides offering the best playing and working field as modern working
environment, we are always cheering and encouraging colleagues to aim for
high performance by offering them the opportunity to grow. Like in
professional sports where top performance is based on excellent training
and wellbeing. And it's our responsibility to make sure that PUMA provides
that.

PUMA is more than just our professional backgrounds. PUMA is

ambition, dedication to the brand and our values, and this reflects in us all.
To this end, we as PUMA People and Organization are driven to react fast,
while keeping people's needs in mind. Like their need to continuously
challenge themselves and unleash their full potential. We connect the dots
locally and globally by creating opportunities to develop, raising the bar of
leadership and keeping an ear on trends to inspire and challenge the status
quo of the organization, and shaping them further.

Company needs right people :-

In our unique culture, we need external and internal talents with the
ideas, innovations and dedication to move PUMA forward. For this, we are
always connecting with professionals and graduates, and internal talents,
ready to take the next step.

9) Key highlights of the company’s websites :-

14
1) About Puma :- Sport has the power to transform and empower us. As
one of the world’s leading sports brands, it’s only natural that we
want to stand on the same playing field as the fastest athletes on the
planet. To achieve that, the PUMA brand is based on the very values
that make an excellent athlete.

2) Our Mission :-
“FOREVER FASTER”
Forever Faster is more than being quick. It is our mantra. It is more
than 70 years of fast products for fast athletes. We aim high, and
when we score our goals, we aim even higher. All to achieve one
thing: to be the Fastest Sports Brand in the World.

3) Our Sport :- The playing field has become as diverse as its players –
and we love it. PUMA supplies athletes with the right equipment on
the fields, tracks and courses. To achieve that, we've done what any
athlete before us has done, we focused.

4) Brand Campaign :- PUMA takes consumers into the minds of its

athletes and ambassadors with its new brand campaign ‘Only See
Great’, to spread a vision of hope, optimism and self-belief ahead of
major sporting events this summer - following what many consider to
be one of the most challenging years in quite some time.

3. Markets

15
 1) Major Customers :-
Puma main customer base, thus their main target market; are
predominantly female. As the products are of best standing, i.e. premium
pricing and brand categories; the market is customer based, not demand-
based.  The products fulfil wants and desires based on image, not needs.
Customers seek the product and service benefits of the image of Puma.
Geographically speaking, the market for large department store such as
Puma is mainly concentrated in large shopping centres or downtown. In a
large shopping centre or downtown shopping district, the market is strong,
with good profit potential.
The main competitors of Puma stores are middle- upper class
department stores that stock a wide variety of products. Competition
mainly comes in the form of premium positioned stores in the high-class
category. In Australia, the main higher class competition would come from
Nicholas Goodwin and Michel Jones, which are both fashionable stores that
offer alike products at a competitive price. However, due to the fact that
John Adam has just recently announced that two of its Australian stores
will close down at the end of 2001, Puma has experienced a slight fall in the
competition in this industry sector. On the other hand the middle class
sector of the industry is still highly competitive, with the likes of main
rivals Sports girl, Kmart, Target and Harvey Norman insuring the need for
regular in-store monitoring and maintenance.

2) Customers Segment :-

16
 Consumer – PUMA make products by targeting the needs of
the customers. From sportswear to casual wears and clothing all are
designed which the customers prefer thus satisfying the customers.
Puma segment its market based on geographic,
d e m o g r a p h i c , psychographic & behavioural factors.

 Geographical Segment : - Geographic segmentation divides

the market based on nations, states, country, and regions. Cities
etc.Regions covered by puma: EMEA (Europe, Middle East and
Africa), Americas (North and Latin America) and Asia/Pacific.

 Demographical Segment :- Variables like age, family size,

gender, income, generation, social class, occupation, education,
religion etc. are considered in case of demographic
segmentation.Puma’s demographic bases:
Age: Kids, young, middle age (10-30years)
Gender: Male, Female.
Income: Upper middle, High
Occupation: Mainly Sportsperson
 Psychographic Segment :- In psychographic segmentation buyers
are divided into group based on personality, life style, values.Bases
of puma:
Lifestyle: Sports-oriented, Outdoor-oriented
Personality: Energetic, ambitious.Main bases of Puma on VALs
Framework:
INNOVATORS: Successful, active
ACHIEVERS: Successful, goal oriented
Experiencers: Young, variety and excitement seeker.
 Behavioural Segment :- Here, Marketers divide the groups on the
basis of their knowledge, attitude, use of, or response to a
product.Puma’s Bases:
Benefit: Quality, performance, comfort
Loyalty Status: Sports persons are highly loyal toward the brand
Attitude towards the products: Majority of the customers have
positive attitude towards the product.

17
3) Products & Product line :-
Puma, is a German multinational corporation that designs and
manufactures athletic and casual footwear, apparel and accessories,
which is headquartered in Bavaria, Germany.
 Casual Footwear :-

 Apparel :-

 Accessories :-

Puma is a German company that established in 1948 by

Rudolf Dassler. Puma produces sport categories such as
sport shoes and sport clothing for different types of sports like
football and golf. Puma is considered as the third successful
brand at this field; the other two companies are Nike and Adidas.

18
4) Major Brands :-

Puma well known as the third largest sportswear manufacturing

organisation, Puma’s birth was the result of a family feud between the
father of Adidas (Adi Dassler) and his brother (Rudolph Dassler) who
worked together as shoe makers for 20 years. The feud resulted in both
brother splitting off and going their separate ways with Adi Dassler
forming Adidas and Rudolph Dassler forming Puma. Rudolph’s business
began to hit off in after his contracts with professional athletes were
successful. BY 1962 his products were shipped to countries all over the
world and were worm by athletes in the Olympics and World Cup. But
despite this Puma was facing major competition in their industry and in the
1990’s they restructured their management team. Their aim was to have
Puma products be renowned globally and be recognized for producing high
quality sports products that optimize individual performance. In 1996 with
Puma facing major success with its footwear and sports apparel products,
as it began to influence other fields of sport Linford Christie wore creative
contact lenses with the white Puma cat on his pupil during a press
conference at the Olympic Games in Atlanta. This later became a symbol for
innovative marketing, and not just in the sports industry.

Puma has gained a reputation for their stylish products having a

more urban look to them and they’re quite popular with younger
generations due to their fashionable appearance. Due to major competition
from both Nike and Adidas, Puma began to diversify by entering the
fashion industry in order to survive. They’ve launched product lines for
sneakers and other casual footwear throughout the years, making a
significant impact on the fashion industry by merging sports and fashion.
Puma grew into the huge corporation it is today through dedication and
constant struggle against competition, but not only did they remain one of
the largest sportswear companies in the world through struggle, they
succeeded by becoming an iconic figure in the world of fashion, by merging
both worlds and creating their own brand that people love today.

19
5) Market Share :-

 Nationally :-

Footwear sales accounted for 45.2% of Puma’s sales in 2020,

the largest share of the sportswear company’s three product
segments. Regarded as Puma’s most important sector, sales of
footwear exceeded two billion euros for the first time in 2018.

 Region wise :-

Sales of Puma apparel amounted to around 1.98 billion euros in

2020, decreasing after sixth consecutive year of growth. The 381.2
million euro increase between 2018 and 2019 was the largest year
over year increase within this segment in the last number of years.

 Product wise :-

20
 Footwear sales accounted for 45.2% of Puma’s sales in 2020,
the largest share of the sportswear company’s three product
segments. Regarded as Puma’s most important sector, sales of
footwear exceeded two billion euros for the first time in 2018.

6) Advertising agency :-

The agency is Berlin-based creative boutique XY. Berliners (or

regular visitors to that city) will recognise that this is set not on the surface
of some distant planet but in a post-apocalyptic version of Berlin itself.
PUMA Marketing is a highly engaged, driven and fun group! We
communicate directly with our consumers daily, and work together to
create stories that effectively reach and impact PUMA fans around the world.
It doesn‘t get any better than that!

Puma Latest 2021 Advertising agency :-

Advertising Agency :- Miami Ad School, Rio de Janeiro, Brazil

Art Directors :- Gabriel Oreiro, Victor Laars, Maurício Pontual, Lucca
Gulminetti
https://www.youtube.com/watch?v=52jUQGQig7E
7) Advertising Slogan/punch line :-

21
 We are Forever Faster
PUMA always looks to do better – We are Forever Faster.

8) Logo :-

9) Key alliances in the past 5 year & Impact :-

Puma SE is a German multinational company that operates within
the global sports industry. The company key regions of operation are
Europe, North and Latin America, and Asia. Since the year 2005, the
company has indicated its interest in Africa in terms of sourcing raw
materials, as well as marketing. In 2004, Puma SE enjoyed a share of
1percent of the global sports equipment market behind Nike, Reebok,
and Adidas and also had 5 percent market share of brands where it was
ranked the fifth. Puma SE is a German multinational company that
operates within the global sports industry. The company key regions of
operation are Europe, North and Latin America, and Asia. Since the year
2005, the company has indicated its interest in Africa in terms of
sourcing raw materials, as well as marketing. In 2004, Puma SE enjoyed
a share of 1percent of the global sports equipment market behind Nike,
Reebok, and Adidas and also had 5 percent market share of brands
where it was ranked the fifth. We will write a custom Report on Puma
SE Company: Strategic Management Analysis specifically for you 812
certified writers online Puma was established by Rudolf Dassler in 1948
after he and Rudi Dassler split the family shoe business. In the late 50s,
the company became a limited partnership and went public in 1980
(Palepu et al., 2007, p.318). The company deals primarily with athletic
footwear, apparel, and accessories. The corporation transformed into a
market-oriented firm that is concerned with diversifying the brand into
superfluity of lifestyle and fashion options.

10) Mergers & Acquisitions :-

Another burst of merger and acquisition activity tuesday
helped drive European stocks to within a whisker of the six-year
22
 highs struck just before the start of a global equity sell-off at the end
of February. The FTSE Eurofirst 300 index rose 8.20 points, or 0.5 per
cent, to 1,548.33, just short of a closing high of 1,550.36 struck on
February 26. Puma leapt 9.4 per cent to €343.93 as a long-awaited
bid for the German sportswear company finally materialised. PPR, the
French luxury goods group, said it had agreed to buy a 27 per cent
stake in Puma for €330 a share and would offer the same amount for
the rest of the company.
There had been plenty of talk in the market recently that
Unibail was planning an acquisition. The company made a
considerable profit on the sale of the Coeur Défense office skyscraper
in Paris, which it jointly owned with Goldman Sachs’ Whitehall
property fund, at the end of last month. Eiffage, the French
construction group, tumbled 8.5 per cent to €118 amid talk that its
largest shareholder, Spain’s Sacyr-Vallehermoso, might reduce its
stake in the company. Sacyr shares rose 6.3 per cent to €45.10.

11) Disruptive Innovation affecting by the organization :-

Puma company strive to always bring new, better, different –

meaningful innovation for game changing athletes. That’s the principle
that guides Innovation at PUMA. Constantly being the first to do
something has always been motivating us. Since our beginnings, we’ve
delivered performance innovations to make athletes elite by thinking
outside of the box. The Brush Spike, designed in 1968, featured Velcro™
for the first time on performance footwear. But it was the brush spikes
themselves that really pushed the limits. The tiny rows of spikes
maximized traction and minimized resistance. The innovation worked
so well that world records were broken at the 1968 Olympic Trials. The
competition fought and succeeded in banning the shoes and thus the
records.

4. Financial

1) Financial data to be studied :-

23
 The Financial statements are the name given to income statement
which is nothing, but profit & loss a/c and the position statement of an
enterprise known as the Balance sheet. These statements show the
financial position of the business in a systematic manner. The Income
statement reveals the net result of the organization during an accounting
period and the Balance sheet shows the position of a company on a
particular date, usually at the end of a financial year.

2) Last 5 years Revenues :-

24
 This statistic shows data on the global revenue of sporting goods
manufacturer Puma SE from 2000 to 2020. In 2020, Puma generated a
global revenue of roughly 5.23 billion euros. Together with Nike and
Adidas, Puma is one of the largest sporting goods manufacturers in the
world. The company is headquartered in Herzogenaurach, Germany and
majority-owned by the French Kering group.

3) Profitability :-

Profitability is measured with an "income statement". This is

essentially a listing of income and expenses during a period of time

25
 (usually a year) for the entire business. Information File Your Farm
Income Statement includes - a simple income statement analysis.
In the financial year 2020, PUMA generated a profit before tax of € 162.3
million (last year: € 417.6 million). Tax expenses were € 39.2 million
compared to € 108.6 million last year and the tax rate decreased from
26.0% to 24.2% in 2020.

4) Market Capitalization :-

Market Capitalization measures the total value of a company based

on their stock price multiplied by the shares outstanding. This metric is
important because it gives you an idea of the size of a company, and how
the size has changed over time.

Market capitalization of the Puma Group worldwide from 1993 to 2020

5) Segment Revenues :-
Footwear sales accounted for 45.2% of Puma’s sales in 2020, the
largest share of the sportswear company’s three product segments.

26
 Regarded as Puma’s most important sector, sales of footwear exceeded
two billion euros for the first time in 2018.
Puma generated around 5.2 billion euros from global sales of
footwear, apparel, and accessories in 2020. Footwear sales have
increased by around 1.27 billion euros since 2014, during which time
the sales share of this segment has edged towards 50%. Sales of Puma
apparel amounted to around 2.1 billion euros in 2019 – increasing by
381.2 million euros between 2018 and 2019. Sales of
accessories continued to rise in 2019, but the 16% share shows that
this is Puma's smallest business segment.

6) Current market share value :-

For the fiscal year ended 31 December 2020, Puma revenues
decreased 5% to EUR5.23B. Net income decreased 70%to EUR78.9M.

27
 Revenues reflect a decrease in demand for the Company's products and
services due to unfavorable market conditions. Net income also reflects
Financial expenses balancing value increase from EUR4.1M to
EUR34.5M (expense), Royalty and commission income decrease of 36%
to EUR16.1M(income), Foreign Exchange Loss.

7) Annual High & Low Figure :-

8) P/E ratio :-
The Price to Earnings Ratio (PE Ratio) is calculated by taking the
stock price. This metric is considered a valuation metric that confirms
whether the earnings of a company justifies the stock price. There isn't

28
 necessarily an optimum PE ratio, since different industries will have
different ranges of PE Ratios.

PUMA has a P/E of 27.43

We can tell from its P/E ratio of 27.43 that there is some investor
optimism about PUMA. As you can see below, PUMA has a higher P/E
than the average company (18.9) in the luxury industry. Earnings
growth rates have a big influence on P/E ratios. That's because
companies that grow earnings per share quickly will rapidly increase
the 'E' in the equation. And in that case, the P/E ratio itself will drop
rather quickly. A lower P/E should indicate the stock is cheap relative to
others -- and that may attract buyers. It's nice to see that PUMA grew
EPS by a stonking 40% in the last year. And its annual EPS growth rate
over 5 years is 33%. So we'd generally expect it to have a relatively high
P/E ratio.

9) Shareholding Patterns :-
French luxury group Kering, owner of approximately 86%
of PUMA's total share capital, announced earlier today that it will
propose to its Annual General Meeting to distribute approximately 70%

29
of the total share capital of PUMA to Kering's shareholders, thus
reducing its shareholding in PUMA to approximately 16%.
The Company is engaged in the sale of products from the PUMA
and COBRA Golf brands through the wholesale and retail trade, as well
as from sales directly to consumers in its own retail stores and online
stores. The Company markets and distributes its products across the
world primarily through its own subsidiaries. The Company distributes
its products in approximately 120 countries. For various product
segments, such as fragrances, eyewear and watches, the Company issues
licenses authorizing independent partners to design, develop and sell
these products.

5. Governance

1) Philosophy :-

30
 The effective implementation of corporate governance
principles is an important aspect of PUMA’s corporate policy. Transparent
and responsible corporate governance is a prerequisite for achieving
corporate targets and for increasing the Company’s value in a sustainable
manner. The Supervisory Board and the Management Board work closely
with each other in the interests of the entire Company so that the
Company is managed and monitored in an efficient way ensuring
sustainable added value through good corporate governance. India’s
growing young population and increasing interest in fitness and sports
will set Puma up for success in the future, the sportswear brand’s global
chief executive Bjorn Gulden said. “It’s great to see the brand record
sustained growth in India. It is a strategic market for Puma. A
combination of global strength and local execution has accelerated the
brand’s momentum in the country,” Puma SE’s chief Gulden said in a
statement. In an earnings statement released late last week, the German
sportswear maker called out the Asia-Pacific region as its strongest
market with 26% sales growth last year at €1,556.9 million, adding that
growth in the region was primarily driven by China and India. The
lifestyle sportswear brand’s India unit reported revenue of Rs 1,413
crore in calendar year 2019, latest regulatory filings show. Like-to-like
store sales grew 17%.

2) Standard & Poor’s corporate governance scores :-

Effective implementation of the principles of corporate
governance is an important aspect of PUMA's corporate policy.

31
 Transparent and responsible corporate governance is a key
prerequisite for achieving corporate targets and for increasing the
Company’s value in a sustainable manner. The Management Board
and the Supervisory Board work closely with each other in the
interests of the entire Company to ensure that the Company is
managed and monitored in an efficient way that will ensure
sustainable added value through good corporate governance. In the
following the Management Board and the Supervisory Board report
on the corporate governance at PUMA SE in accordance with Section
3.10 of the German Corporate Governance Code. This section also
includes the Statement of Compliance in accordance with Art.
9(1)c(ii) of the SE Regulation (SE-VO) in conjunction with Section
289f and Section 315d HGB. PUMA SE has the legal form of a
European company (Societal European, or SE). Being an SE
headquartered in Germany, PUMA SE is subject to European and
German law for SEs while remaining subject to German stock
corporation law. As a company listed in Germany, PUMA SE adheres
to the German Corporate Governance Code (DCGK). Until July 9,
2018, PUMA SE had a monistic management system with an
Administrative Board as the uniform management and control body.
The managing directors managed the company's day-to-day business.
Management Board as the management body and the Supervisory
Board as the supervisory body. The corresponding amendment to the
Articles of Association took effect on July 9, 2018.
3) CRISIL Rating :-
The downgrade reflects the weakening of the SSIPL group's
business risk profile on account of discontinuation of contract

32
 manufacturing for Nike. Though revenue is expected to remain stable
but profitable will decline further in fiscal 2020; the group had profit
before tax of negative Rs 12.2 crore between April and December in
fiscal 2020. With economic disturbance during the fourth quarter of
fiscal 2020 because of the Novel Coronavirus (Covid-19) outbreak,
profitability will dip further to negative Rs 15-17 crore in fiscal 2020,
compared with positive Rs 0.6 crore in fiscal 2019. The downgrade
also factors in the weakening of the financial risk profile, as
contraction of additional debt in fiscal 2020 ha weaken the capital
structure, and decreased profitability will lead to weakening of debt
protection metrics; interest coverage is estimated to decline to Rs
1.05 times in fiscal 2020 from 1.96 times in fiscal 2019. Though debt
(for fiscal 2020) was serviced on time with contraction of additional
working capital debt (as accrual was low), liquidity was seen under
pressure due to reduced accruals.
  Further change in rating outlook also follows measures taken
by central and state governments towards containment of COVID-19,
which includes temporary closure of non-critical establishments. In
the wake of said lockdown, business operations will be impacted
leading to further impact on financial risk profile, especially liquidity.
While, Central government's measures are applicable till April 14,
2020, revocation of the measures will be contingent upon directive
from the Central government and extent of spread of COVID-19.

4) Major awards & achievements of the organisation :-

The Footwear News Achievement Awards, which are also referred
to as the “Shoe Oscars”, were held on Tuesday night in New York
City. Accepting the award on behalf of PUMA, CEO Bjørn Gulden told

33
Footwear News that the industry had become more and more
relevant. “Everywhere I go people care about sports, fashion and
footwear,” he said, while emphasizing that there was still a lot of work
to be done. 
“We have had a good run and have delivered what we promised,
but we have a lot to improve and we know what to improve. We’re at
the start of a journey that will go on for a long time,” he added. PUMA
has bolstered its presence on the North American market by
successfully re-entering the basketball category and, more recently,
opening its flagship store on Fifth Avenue in New York City.
Supermodel Adriana Lima, who created her first boxing-inspired
collection together with PUMA last month, talked about her inspiration
for the collection on the red carpet and attended the show to present
the award to PUMA. In her opening remarks, Adriana pointed out that
great products always have a great story attached to them. “I believe
that in everything — shoes, fashion, whatever it is — there is always a
story behind it,” she said. “That’s how people connect themselves to the
brand.” 

5) Insider trading issue :-

Another way to test the alignment between the leaders of a

company and other shareholders is to look at how many shares they
own. A high insider ownership often makes company leadership more
mindful of shareholder interests. It appears that Puma Biotechnology

34
insiders own 13% of the company, worth about US$59m. We've
certainly seen higher levels of insider ownership elsewhere, but these
holdings are enough to suggest alignment between insiders and the
other shareholders. Insiders sold stock recently, but they haven't been
buying. And even if we look at the last year, we didn't see any
purchases. While insiders do own shares, they don't own a heap, and
they have been selling. We'd practice some caution before buying! So
while it's helpful to know what insiders are doing in terms of buying or
selling, it's also helpful to know the risks that a particular company is
facing. While conducting our analysis, we found that Puma
Biotechnology has 2 warning signs and it would be unwise to ignore
them.

  

6) Forward looking statements :-

PUMA is one of the world’s leading Sports Brands, designing,

developing, selling and marketing footwear, apparel and accessories.
For 70 years, PUMA has relentlessly pushed sport and culture forward

35
by creating fast products for the world’s fastest athletes. PUMA offers
performance and sport-inspired lifestyle products in categories such as
Football, Running and Training, Basketball, Golf, and Motorsports. It
collaborates with renowned designers and brands to bring sport
influences into street culture and fashion. The PUMA Group owns the
brands PUMA, Cobra Golf and stichd. The company distributes its
products in more than 120 countries, employs more than 13,000 people
worldwide, and is headquartered in Herzogenaurach/Germany.

This document contains forward-looking statements about the

Company’s future financial status and strategic initiatives. The forward-
looking statements are based on the current expectations and
assumptions of the management team. These are subject to a certain
level of risk and uncertainty including, but not limited to those
described above or in other disclosures, in particular in the chapter
Risk and Opportunity Management in the Group Management Report.
In the event that the expectations and the assumptions do not
materialize or unforeseen risks arise, the Company's actual results can
differ significantly from expectations. Therefore, we cannot assume
responsibility for the correctness of these statements.

36