The Cost Management and Product Management Accounting Techniques adopted by Puma are essentially reported on thereby describing the company’s strategic positioning and the challenges faced by Puma in implementing is techniques. PUMA was established in 1924 by founding brothers Schuhfabrik Rudolf Dassler and Adi Dassler and was renamed PUMA Schuhfabrik Rudolf Dassler in 1948 when Adi left the company to start his own shoe company, Adidas. This revolution of management came to understand the need for amalgamating accounting and management techniques. Strategic management accounting is the analysis of data regarding management accounting relating to a particular business as well as its competitors (Sharma, 2009). Puma consistently develops innovative product and marketing campaigns to improve the brand profile and to continually increase product and brand desirability. Strategic Positioning concern performing different activities from rivals or performing similar activities in different ways. It is how a company will present itself to the market giving itself a competitive edge. The Business environment in which they operate is however large and therefore they cannot use the same concepts everywhere therefore decentralisation for day to day management is effective while IT systems can be used for centralised monitoring and coordination,
Management accounting techniques were adopted and used to analyse and evaluate the business information of Puma. The results from the evaluation and analysis will be reported starting with the Company Profile Puma SE (PUMA) and its adaptability to business environment changes focusing on management accounting changes, technologies used management practices and its product life cycle.The Cost Management and Product Management Accounting Techniques adopted by Puma are essentially reported on thereby describing the company’s strategic positioning and the challenges faced by Puma in implementing is techniques. The report will recommend ways in which Puma can reduce or eliminate its limitations. Company Profile
PUMA was established in 1924 by founding brothers Schuhfabrik Rudolf Dassler and Adi Dassler and was renamed PUMA Schuhfabrik Rudolf Dassler in 1948 when Adi left the company to start his own shoe company, Adidas. Puma employs more than 9,500 people worldwide that designs and develops footwear, apparel and accessories making it one of the world's leading sportlifestyle companies.The company and has headquarters in Herzogenaurach/Germany, Boston, London and Hong Kong and went public in 1986. The PUMA Group owns the brands PUMA, Cobra Golf and Tretorn. The Company has a total Capital Stock of € 38,611,108.00 as per 01/01/2012 till 31/12/2012 financial statements. PUMA sponsors many athletes such as Olympic champion Usain Bolt of Jamaica and another large number of national and club teams in sports ranging from soccer to cricket. PUMA starts in Sport and ends in Fashion Its Sport Performance and Lifestyle labels include categories such as Football, Running, Motorsports, Golf and Sailing. Sport Fashion features collaborations with renowned designer labels such as Alexander McQueen, Mihara Yasuhiro and Sergio RossiIt is committed to working in ways that contribute to the world by supporting Creativity, Sustainability and Peace, and by staying true to the principles of being Fair, Honest, Positive and Creative in decisions made and actions taken. (Delloitte and Touche, 2013)
Management Accounting Changes due to Business Environment
The business world of today has become much more complex and vast with most properly set up and registered businesses of any size penetrating markets much further from their geographical locations. The change of markets and their influences led to the development of modern business environments. Business environment therefore refers to the influences and pressures exerted by external factors on the...