Stamford University Bangladesh

LLC companies from global perspective Disscussion

Course Title

Entrepreneurship

Course Code

MGMT 446

Submitted By
Naimur Rahman Navan
BBA 066 18963
66 (E)

Submitted To
Shabnam Mostari Alam
Assistant Professor

Submission Date
27-04-2021
There are three LLC companies from global perspective and
discussing on these companies:

1. Pepsi
2. Puma
3. Samsung

Short Brief on LLC (Limited Liability Company)

What Is an LLC?

LLC stands for "limited liability Company." An LLC is one type of legal entity that can be
formed to own and operate a business. LLCs are very popular because they provide the
same limited liability as a corporation, but are easier and cheaper to form and run.

Who Should Form an LLC?

Any person starting a business, or currently running a business as a sole proprietor,

should consider forming an LLC. This is especially true if you're concerned with limiting
your personal legal liability as much as possible.

LLCs can be used to own and run almost any type of business. However, in some states
some types of professionals must form special professional LLCs. An LLC can be used for
a business of any size—from one-owner operations to businesses with many co-owners.
LLCs are also the most common legal entity used to own rental and commercial
property.

What Are the Benefits of an LLC?

Personal asset protection. An LLC provides its owner or owners with limited liability. This
means that means you—the LLC owner—are generally not personally liable for any debts
incurred by your LLC business or most business-related lawsuits. Because you’re not
personally liable, creditors or people who file lawsuits against your LLC can’t collect
against your personal assets like your personal bank accounts, personal car, or home.
They are limited to collecting from your LLC’s assets, like your LLC’s bank account. For
more details, see “LLCs and Limited Liability Protection.”

Pass-Through Taxation. LLCs ordinarily provide their owners with pass-through taxation.
The profits (or losses) the business incurs pass through the business to the owner’s
personal tax return. Such profits are taxed at the owner’s personal tax rates.

Single-member LLCs (SMLLCs) are usually taxed the same as sole proprietorships. The
owner reports the LLC's profits, losses, and deductions on IRS Schedule C and files it with
his or her personal return. An LLC with two or more members is usually treated like a
partnership for tax purposes. Again, profits or losses are reported on the owners'
personal returns and taxed at their personal rates.

Because LLCs are usually pass-through entities, their owners can qualify for the special
pass-through tax deduction created by the Tax Cuts and Jobs Act. This deduction took
effect in 2018 and is scheduled to continue through 2025. This is an income tax
deduction of up to 20% of the net business income earned by the pass-through business.
For details, refer to “The 20% Pass-Through Tax Deduction for Business Owners.”

Flexibility. LLCs provide enormous flexibility when it comes to ownership, management,

and taxation. There are no minimum or maximum limits on the number of owners--also
called members--that an LLC can have. Many LLCs have only one member, but an LLC can
have five or ten or hundreds of members.

LLCs can be managed by their members--that is, all the owners share responsibility for
the day-to-day running of the business. LLCs also have the option of designating one or
more managers to run the business. The managers can be designated members,
nonmembers, or a combination of both.

LLCs can also choose how they want to be taxed. They are usually taxed as sole
proprietorships or partnerships, but SMLLCs and multi-member LLCs have the option of
choosing to be taxed like a corporation.

This is easily accomplished by filing a document called an election with the IRS. LLCs can
choose to be taxed as a C corporation or an S corporation. Either way, the LLC owners
ordinarily work as employees of the corporations. With C corporation taxation, the
corporation pays taxes on the business profits at the corporate tax rate.

The C corporation tax rate is 21%, much lower that of most individual rates. With S
corporation treatment, the LLC remains a pass-through entity, with profits passed
through the business to the owners to be taxed at their individual tax rates. But such
distributions are not subject to Social Security and Medicare taxes. Thus, S corporation
tax treatment can result in tax savings. For more details, see “Why You Might Choose S
Corp Taxation for Your LLC.”

What Are the Disadvantages of an LLC?

Cost: It generally costs more to form and operate an LLC than to be a sole proprietor or
have a partnership. Filing fees must be paid to legally establish the LLC. Although not
legally required, it is highly desirable for LLCs to adopt a written LLC operating
agreement laying out how the LLC will be governed. Once the LLC is formed, annual fees
and taxes will have to be paid to the state. These vary from state to state, but can be as
high as $800 per year or more for highly profitable LLCs.

Investment Disadvantages: LLCs are not ideal for business owners who seek outside
investors. This is particularly true if you’re looking for funding from venture capitalists,
who ordinarily will only fund corporations. Corporations work best for outside
investments because stock can be issued in exchange for investors’ money. Outside
investors can invest in LLCs and receive LLC ownership interests, but this can be more
complicated than with a corporation.
PEPSI
Discuss a few countries according to Pepsi’s Global Perspective

PepsiCo Inc is a global giant and as such its marketing strategy needs to be multinational. Hence
the marketing strategy it needs to adopt is one that has international standards with local
flavours. In short a multinational strategy. An important point when it comes to international
marketing is that there need to re-evaluation of the plans from time to time to make changes as
per the changing international scene (Lascu, 2003). A multinational strategy can be called an
evolved international strategy. The company involved needs to be ready to adjust not only its
products but also its practices irrespective of the high cost to suit the conditions of the markets in
different nations (Kotabe and Helsen, 2009). However a point of note is that the differences that
existed among nations in their preferences of products are quickly fading away. A company now
days cannot get away with introducing a product in a developing country a year after it was
already introduced in developed countries (Kotabe and Helsen, 2009). Due to this very reason
PepsiCo need to stick to a pattern where a product when introduced in the US is also introduced
in Europe and Asia. However, its advertising strategy should be adjusted in accordance with the
beliefs and practices of different countries. There can be a common underlying message,
however the words used and the scenes used need to be altered to suit the country. Something
that works in the USA may turn out to be offensive in an Asian country due to the vast cultural
paradoxes.

Company’s Profile
Pepsi is a manufacturer and distributor of beverages. It offers caffeine, citrus, ginger, zero sugar
and diet beverages, soft drinks, snacks, oats, and more.
Manufacturing & Industrialbeveragesdistributionprocessed food
Type Private
Founded 1898
HQ Harrison, NY, US Map
Website pepsi.com

Acquisitions
Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses
outside of its core focus of packaged food and beverage brands; however it exited these non-core
business lines largely in 1997, selling some, and spinning off others into a new company
named Tricon Global Restaurants, which later became known as Yum! Brands, Inc. PepsiCo also
previously owned several other brands that it later sold so it could focus on its primary snack food
and beverage lines, according to investment analysts reporting on the divestments in 1997. Brands
formerly owned by PepsiCo include:

In 2019 PepsiCo sued four small farmers in India US$142,000 each for growing a type of potato
it says it owns.] Pepsi said they would end the suit if the farmers grew potatoes for them. A number
of Farmers' associations are requesting that the government get involved in the case stating that
Pepsi is attempting to intimidate people. After pressure from the public as well as state and national
governments, PepsiCo withdrew the lawsuit on May 2, 2019.

On October 3, 2019, PepsiCo announced that they will leave Indonesia after terminating their
partnership with local distributor PT Anugerah Indofood Barokah Makmur (AIBM). Both
companies stopped production of PepsiCo products on October 10. This has resulted in KFC and
Pizza Hut chains in the country to switch to Coca-Cola products.

On December 2, 2019, PepsiCo acquired the snacks brand, BFY Brands, who are going to be
folded into the Frito-Lay division

In March 2020, PepsiCo announced that it had entered into agreement to acquire Rockstar Energy
for $3.85 billion

In January 2021, as a plan to fight global warming, PepsiCo announced that it is planning to
achieve net-zero greenhouse gas emissions by 2040, knowing that it had already started generating
about 57 million metric tonnes of greenhouse gas emissions globally in 2019.

Competition

The Coca-Cola Company has historically been considered PepsiCo's primary competitor in the
beverage market and in December 2005, PepsiCo surpassed The Coca-Cola Company in market
value for the first time in 12 years since both companies began to compete. In 2009, The Coca-
Cola Company held a higher market share in carbonated soft drink sales within the U.S. In the
same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however,
reflecting the differences in product lines between the two companies. As a result of mergers,
acquisitions, and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted
to include a broader product base, including foods, snacks, and beverages. The majority of
PepsiCo's revenues no longer come from the production and sale of carbonated soft drinks.
Beverages accounted for less than 50 percent of its total revenue in 2009. In the same year, slightly
more than 60 percent of PepsiCo's beverage sales came from its primary non-carbonated brands,
namely Gatorade and Tropicana.
PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food market,
accounting for approximately 39 percent of U.S. snack food sales in 2009. One of PepsiCo's
primary competitors in the snack food market overall is Kraft Foods (now Mondelez International),
which in the same year held 11 percent of the U.S. snack market share. Other competitors for soda
are RC Cola, Keurig Dr. Pepper, and independent brands varying by region.

Organogram

OPERATION STRUCTURE
Pepsi marketing Strategy Overview
PepsiCo Inc is a global giant and as such its marketing strategy needs to be multinational. Hence
the marketing strategy it needs to adopt is one that has international standards with local
flavours. In short a multinational strategy. An important point when it comes to international
marketing is that there need to re-evaluation of the plans from time to time to make changes as
per the changing international scene (Lascu, 2003). A multinational strategy can be called an
evolved international strategy. The company involved needs to be ready to adjust not only its
products but also its practices irrespective of the high cost to suit the conditions of the markets in
different nations (Kotabe and Helsen, 2009). However a point of note is that the differences that
existed among nations in their preferences of products are quickly fading away. A company now
days cannot get away with introducing a product in a developing country a year after it was
already introduced in developed countries (Kotabe and Helsen, 2009). Due to this very reason
PepsiCo need to stick to a pattern where a product when introduced in the US is also introduced
in Europe and Asia. However, its advertising strategy should be adjusted in accordance with the
beliefs and practices of different countries. Something that works in the USA may turn out to be
offensive in an Asian country due to the vast cultural paradoxes.
To be successful, it is essential to have a well drawn marketing plan as well. The plan should
begin at the market level, so that there is a complete understanding of the customer preferences
and then gradually progress to the corporate level (McDonald and Wilson, 2011). This gives a
worldwide plan that takes into consideration the customer preferences. Such a plan will enable
PepsiCo to bring out a market program that would be structures such that changes can be made
as per the requirement of the very volatile market. PepsiCo will thus be able to come out with
new or modified products that are liked by the customers. It will also be able to come out with a
promotional campaign (that is key to its success) that will be acceptable to people of different
countries.
Puma
Discuss a few countries according to puma’s Global Perspective

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. Puma is one of the biggest companies in the industry, directly
competing against other large players, such as Nike, Adidas, ASICS, Under Armour, and VF
Corporation, which impose aggressive competitive pressures in the international industry.
Puma’s corporate vision and mission statements are critical determinants of how the business
pursues its strategic objectives and follows its strategic plans, despite pressures, risks, and
challenges from large multinational competitors.

Company’s Profile
PUMA is a sports lifestyle company that designs, develops, sells, and markets footwear, apparel,
and accessories. The Company offers performance and sport-inspired lifestyle products in
categories, such as football, running and training, golf, and motorsports. It also issues licenses to
authorized independent partners to design, develop, manufacture, and sell fragrances, eyewear,
and watches. The Company sells its products through PUMA stores and factory outlets, as well as
online. It offers its products under the PUMA, Cobra Golf, and Dobotex brands names. Show more

Manufacturing & IndustrialRetailaccessoriesclothingecommercefootwearsport

Type Public
Founded 1948
HQ Herzogenaurach, DE Map
Website global.puma.com
Acquisitions
Puma SE, branded as Puma, is a German multinational corporation that designs and
manufactures athletic and casual footwear, apparel and accessories, which is headquartered
in Herzogenaurach, Bavaria, Germany. Puma is the third largest sportswear manufacturer in the
world. The company was founded in 1948 by Rudolf Dassler. In 1924, Rudolf and his
brother Adolf "Adi" Dassler had jointly formed the company Gebrüder Dassler
Schuhfabrik (Dassler Brothers Shoe Factory). The relationship between the two brothers
deteriorated until the two agreed to split in 1948, forming two separate
entities, Adidas and Puma. Both companies are currently based in Herzogenaurach, Germany.
Puma has been a public company since 1986, listed on the Frankfurt Stock Exchange. French
luxury group Kering (formerly known as Pinault-Printemps-Redoute or PPR) holds 16%,
Kering's largest shareholder Artemis SA owns 29% of the share capital. Since 1 July 2013, the
company has been led by former football professional Bjørn Gulden (chief executive officer).
As of 2017, Puma SE employs more than 13,000 people worldwide and distributes its products
in more than 120 countries.
Following the split from his brother, Rudolf originally registered the newly established company
as Ruda (derived from Rudolf Dassler, as Adidas was based on Adi Dassler), but later changed
the name to Puma.[8] Puma's earliest logo consisted of a square and beast jumping through a D,
which was registered, along with the company's name, in 1948. Puma's shoe and clothing designs
feature the Puma logo and the distinctive "Formstrip" which was introduced in 1958.

Competition

From humble beginnings to being one of the largest and most valuable brands of the world,
Adidas have come a long way from making lightweight football boots with screw on studs to
making high quality sportswear that everyone knows and loves today. The Adidas name came
from its founder Adolf (Adi) Dassler when he embarked on his mission to provide athletes with
the best quality equipment in 1949. His soccer shoes became a hit due to their light weight,
durability and grip from the cleats attached to the bottom, additionally he also gave free pairs to
Olympic athletes, driving immense awareness for his brand. After their huge success they are
able to build a new factory to increase efficiency for satisfying the demand for their famous “3-
stripe shoes.”
Gaining more momentum, in the 1960s to the 1980s adidas begin producing football apparel (the
Franz Beckenbauer tracksuit being their first) and their first football (TELSTAR) as well
entering other fields of sport. After Adi’s death in 1978, his son Horst and his widow kathe take
charge of the company and continue his work. Adidas’ endless innovation continues even to this
day, their ground-breaking products such as the Climacool range with helps regulate body
temperature during performance; the energy boost (a running shoe with a completely different
cushioning material) are great examples of this.
Today Adidas is one of the largest and most valuable football companies in the world, a global
goliath of the football world. Not only do they focus on athletic performance, they have
combined sport, style and fashion, promoting individualism and authenticity in style because
they believe sports is a lifestyle than just a hobby, Adidas Originals is a clothing line that dates
back to the classic trefoil logo. Adidas adopted the slogan “Impossible is nothing” and have
gained success by collaborating with famous figures in fashion, music and especially sports.
They sponsor more than 600 football players (They’re most prominent players being Lionel
Messi and David Beckham) in the European league and more than 250 professional clubs.

Organogram
Puma Marketing Strategy Overview
A marketing strategy defines objectives and describes the way you’re going to satisfy customers
in your chosen markets. It does not have to be written down but it is easier to communicate to
outsiders, like your bank manager or other investors, when it is.
A set of strategies found quite commonly in smaller businesses are growth strategies. One way to
look at strategies to grow your business is through the way you will use products and markets or
customers.
The marketing concept of building an organization around the profitable satisfaction of
customers’ needs has helped firms to achieve success in high-growth, moderately competitive
markets. However, to be successful in markets in which economic growth has levelled and in
which there exist many competition who follow the marketing concept, a well-developed
marketing strategy is required. Such a strategy considers a portfolio of products and takes into
account the anticipated moves of competitors in the market.
Contents used to find out the strategy of PUMA are Current Marketing Strategy and Current
Financial position. The other tools used are Porter’s 5 forces for the external environment.
SWOT analysis for the internal environment. This report also looks into the marketing mix of
puma.
Samsung
Company’s Profile
Samsung Electro-Mechanics is a company that develops and manufactures electronic
components. It offers camera and module solutions, chip components, and printed circuit board
solutions. The company serves automotive, mobile, computer, and display applications. Show
more. The company serves automotive, mobile, computer, and display applications.
Manufacturing & Industrial electronic
Componentselectronicsmechanical
Components optics
Type Public
Founded 1973
HQ Suwon, KR Map
Website samsungsem.com

Samsung Electronics has two major product divisions. One is Finished Goods division which
again divides into Digital Media division that produces televisions, refrigerators, printers, etc and
Information Communication division that produces cellular phones and other communication
devices. The other major division is the Component division which divides into Semi-conductor
part and LCD part. Although the global strategy of Samsung Electronics is implemented
throughout the whole division, we will focus mainly on Samsung TVs and mobile phones of the
finished goods division. Samsung is most known for LED-backlit LCD TVs and mobile phones
which are products Samsung has announced as the future growth engine. Samsung TVs have
grown to be the most profitable and competitive sector among all Samsung products, being the
No.1 TV producer in the global market for 5 years in a row As for mobile phones, the rapid
expansion and increasing significance of the market for smart phones and the strong competition
inside have made Samsung announce strategic focus in the cellular phone segment in the future
In 2000, Samsung opened a development center in Warsaw, Poland. Its work began with set-top-
box technology before moving into digital TV and smartphones. The smartphone platform was
developed with partners, officially launched with the original Samsung Solstice [34] line of
devices and other derivatives in 2008, which was later developed into Samsung Galaxy line of
devices including Notes, Edge and other products.
The Samsung Group's chairman, Lee Kun-hee (left), with South Korean President Park Geun-
hye, 2013
In 2007, former Samsung chief lawyer Kim Yong Chul claimed that he was involved in bribing
and fabricating evidence on behalf of the group's chairman, Lee Kun-hee, and the company. Kim
said that Samsung lawyers trained executives to serve as scapegoats in a "fabricated scenario" to
protect Lee, even though those executives were not involved. Kim also told the media that he
was "sidelined" by Samsung after he refused to pay a $3.3 million bribe to the U.S. Federal
District Court judge presiding over a case where two of their executives were found guilty on
charges related to memory chip price-fixing. Kim revealed that the company had raised a large
number of secret funds through bank accounts illegally opened under the names of up to 1,000
Samsung executives—under his own name, four accounts were opened to manage 5 billion
won.[35]

Samsung Marketing Strategy in South Asia

Think of any high-end consumer durable like a camera, MP3 player, integrated mobile phone,
plasma television, or even camcorders, and it is only natural that Samsung comes to mind.
Samsung, the South Korean behemoth, was ranked the 6th most valuable global brand in 2017,
with a brand value of USD 56.2 billion, by Interbrand, an international brand valuation firm, in
its annual ranking of the world’s top 100 brands. Samsung has a diversified empire with interests
in electronics, heavy industries, financial services and trading. Envisioning itself as a global
leader in most industries, Samsung booked record profits of over USD 26 billion in 2016, on
revenues of USD 180 billion.
These achievements are outstanding testimonials to Samsung chairman Lee Kun-Hee’s vision of
taking Samsung from a manufacturer of cheap versions of Japanese products to a global digital
leader. With a business strategy spun around building a top-notch brand, the company invested
billions to reposition itself as a respectable brand, with innovation, cutting-edge technology and
world-class design as trademark characteristics. From being on the verge of bankruptcy during
the 1997 Asian financial crisis, Samsung has become a truly world-class business empire.
Samsung has been the biggest smartphone brand in the Southeast Asian market for a few years,
but it got beat by OPPO in the last quarter of 2019. It is being reported that improved sales of
premium smartphones in the region is boding well for Samsung. Last year, 46 percent of the
phones sold in the region were priced below $100, but that number has now dropped to 27
percent. Smartphones priced above $600 contributed to 10 percent of overall sales, up from 4
percent in the previous quarter.
In the global market, Huawei briefly overtook Samsung during April 2020, but the overall
number for the quarter showed Samsung as the biggest brand with an 18.5 percent share of the
market, while Huawei came in second with a market share of 14.2 percent. The South Korean
smartphone giant also improved its ASP (average selling price) to the highest in six years.
According to a new report from market research firm Counterpoint Research, Samsung’s market
share in the Southeast Asian market reached 18.9 percent during the first quarter of this year.
Chinese firm OPPO’s market share was 18.7 percent, losing to Samsung by just 0.2
percent. Xiaomi, Vivo, and Realme stood at third, fourth, and fifth places, respectively. Xiaomi’s
market share was 14.8 percent, while Vivo and Realme captured 13.6 percent and 7.3 percent of
the market, respectively.
Samsung Marketing Strategy in Europe
Samsung maintains its lead in the market even though it recorded a slender 3% annual growth.
The Korean tech giant commands a 34% share of the European smartphone market, according to
the report. U.S tech giant Apple is in the second position with an estimated market share of 19%
in Q3 2020.
Xiaomi maintains the number 3 spot with an estimated 19% share of the market, the same with
Apple. Canalys reports that Xiaomi’s market share represents a staggering 91% annual growth.
However, the biggest growth recorded in the report is OPPO’s ascent into the top 5 European
smartphone vendors with a 3% share of the market. The performance represents a 396% annual
growth for the Chinese phone maker.
In Western Europe, the chart remains essentially the same with that of the entire European
market but most of OPPO’s sales seem to have come from Western Europe where it recorded an
annual growth of 942%.
However, Xiaomi emerges as the top smartphone vendor in Spain with a 34% share of the
market. Samsung ranks second with 26% market share while Huawei’s 15% market share places
it in the third position. OPPO jumps to the fourth position with an 8% market share while Apple
drops to the fifth position with a 7% market share. Apple’s market share is expected to rebound
post-iPhone 12 release in the fourth quarter.

Organogram
Samsung Marketing Strategy Overview
Samsung Electronics Company is the flagship subsidiary of the Samsung Group. Its headquarters
is located in Seoul, Korea, and has assembly plants and sales networks in 65 different countries
around the world. Samsung Electronics is the world’s largest electronics company, and ranked
19th in the annual Best Global Brands Ranking, conducted by Interbrand, in 2010 (Kim par.1).
Its sales revenue in the areas of LCD and LED displays and computer chips is the world’s No.1.
Apart from Samsung branded finished products, SEC is also a major supplier of crucial
components to its rival companies (“The Succession…” par. 7). Samsung-manufactured
components are not only used in Samsung brand electronics, but many other TV and mobile
phone brands also contain Samsung-manufactured memory components.