Puma Financials Essay

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Primarily, PUMA started their strategy by making the brand more profitable. The main changes that happened are from the accounting practices of the company. During the changes and process of restructure, different political factors might be considered like the environmental issues. As of now, more and more organizations are focusing on different issues regarding the environment. The fact that the company will be outsourcing from other countries, there are different international as well as local laws that must be considered in order to maintain the continuous process of the development. The trade restriction and tariffs are also another of the most important political factors that must be considered. This is due to the fact that the company already followed the strategy of Adidas and Nike in outsourcing their production in Asia (Stevenson 2003). The primary reason for outsourcing of production is because, most of Asian countries offer lower labor cost and other taxes compare to Europe and America. In terms of political stability, due to the fact that the company is a multinational company that produce as well as sell their products in different parts of the world, there different political issues and events in other local partners that can affect the overall performance of the company. The company’s primary goal is to reestablish the image of their brand, and there are different forces that can affect the process of decision-making as well as implementing of different strategies. In terms of the threat of the new entry, because, the company has once become one of the most admired brands in the world, the reestablishments of their brand name will not be that expensive, but there will be a great demand for initial investments as well as fixed costs for maintenance and other related costs. In terms of economies of scale, the company has to use the power of media in

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