Puma Organizational Structure

  • Puma utilizes a U-form organizational structure. Otherwise known as a functional structure, this allows the company to effectively structure its business operations around the world.
  • Some of Puma’s functional groups include Finance, Sourcing, Supervisory Board, and Office of the CEO. There are also over 100 subsidiaries that perform various tasks at the local level, such as administration, distribution, marketing, and product development.
  • Puma’s organizational structure consists of three product-based divisions: footwear, apparel, and accessories. There are also three geographic divisions: Americas, Asia-Pacific, and Europe, Middle East, and Africa.

Introduction

Puma is a German multinational that specializes in the manufacture and design of footwear, apparel, and related accessories. The company, which was founded in 1948 by Rudolf Dassler, is the world’s third-largest sportswear manufacturer behind Nike and Adidas.

Puma utilizes a U-form organizational structure. Otherwise known as a functional structure, this allows the company to effectively structure its business operations around the world and maintain a competitive advantage in a dynamic industry.

Let’s take a look at the U-form approach in more detail below with some additional commentary on secondary aspects of Puma’s organizational structure

U-form or unitary organizational structure

Puma’s U-form organizational structure consists of a hierarchy with company headquarters overseeing various business components along functional lines. This hierarchy is a predominant feature of Puma’s structure, with decisions passed from headquarters down to the most junior of employees.

Each business component (or functional group) consists of employees and/or business processes that are grouped according to commonalities in material utilization, human resource expertise, or operational activities.

In terms of corporate governance, Puma has a dual management and supervisory structure. There is a four-member Management Board comprised of the Chief Executive Officer, Chief Sourcing Officer, Chief Commercial Officer, and Chief Financial Officer. There is also a six-member Supervisory Board with management consultants and employee representatives, among others.

Otherwise, the main functional groups in Puma include:

  1. Office of the CEO.
  2. Finance, and
  3. Sourcing.

The company also directly or indirectly controls over 100 subsidiaries that perform tasks at the local level. These tasks are related to product development, distribution, sourcing, marketing, and administration.

Puma’s U-form structure gives corporate headquarters full control over business operations and strategic decision-making. It also promotes employee specialization and economies of scale for global operations. 

But the structure is not without its drawbacks. In some cases, senior management at Puma may be less responsive in the face of complex problems that are specific to a particular group.

Product-based divisions

Supporting Puma’s functional groups are product-based divisions. These divisions help the company maintain its position as an innovative producer of sports-related goods.

There are also three product-based divisions:

  1. Footwear – the most lucrative source of revenue for the company with sales of €3.163 billion in 2021.
  2. Apparel, and
  3. Accessories.

Geographic divisions

For the purposes of internal reporting, Puma’s business activities are divided into three broad geographic divisions:

  1. Americas.
  2. Asia-Pacific, and
  3. EMEA (Europe, Middle East, and Africa).

Read Also: U vs M-form Organizational Structure, Nike Business Model.

Main Resources

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