New Balance

athletic shoes
Group 13

Anand A, EPGCSM-013-003

Mahesh K, EPGCSM-013-013

Swayamjeet D, EPGCSM-013-023

Sudhakar T, EPGCSM-013-024

Rajan ST, EPGCSM-013-025

Vamsi M Challa, EPGCSM-013-027

Vinay Kumar, EPGCSM-013-030

Vipin K. EPGCSM-013-031
 Current 7 S Model
Strategy
• Innovative performance footwear where fit is crucial

Structure
• Cross Functional team in operations and matrix based structure in sales.

System
• Technologically strong Inventory Management and work flow tracking system for WIP.

Skills
• Team focused work force.

Staff
• Combination of Perm staff and independent sales force

Style
• Entrepreneurial mindset, Focus on Performance oriented Products.

Shared Values
• Social Responsibility, Quality Performance Shoes, Customer Satisfaction,
 New 7 S Model
• Innovative performance footwear where fit is crucial
Strategy • New – Adding Medium Marketing wing into the Org structure (Addition of NB Stores), Continue focus on NB2E.

• Cross Functional team in operations and matrix based structure in sales.

Structure • New – Marketing to be added in Org structure. (Review & Approval with Senior Management)

• Technologically strong Inventory Management and work flow tracking system for WIP.
System

• Team focused work force.

Skills

• Combination of Perm staff and independent sales force.

Staff • New – Hire Marketing work force for New store.

• Entrepreneurial mindset, Focus on Performance oriented Products.

Style

• Social Responsibility, Quality Performance Shoes, Customer Satisfaction,

Shared Values
◦ Q. Should New Balance Athletic Shoes change its strategy in light of the consolidation
among competitors or view this as an opportunity to emphasize their current
approach.

◦ Our approach to the change in competitive space, we would like to focus on Operations and Marketing :
1. Operations
Continue the Focus on NB2E initiative, to overcome the current short transient decrease in quality and delay in product deliveries and provide us
sustained leverage in turn around times going forward along with optimized production, inventory cost, eventually leading better margins

2. Marketing / Brand Visibility

Invest in marketing parallelly with immediate effect for a wider customer reach to sustain & Improve the current 58% Brand Visibility
◦ Dedicated Marketing Function
◦ Social Media Campaigns
◦ Brand Endorsements

◦ Increase in NB Sales stores

◦ Market Penetration
◦ Sales Growth
APPENDIX
 NB2E – New Balance Executional Excellence
1. Prioritizing on Fit of the shoes then appearance
2. To achieve optimum quality and efficiency
3. Lean Manufacturing approach – Aiming to reduce the delivery time of each order, moving from Batch to unit production
resulting in inventory level
4. Manufacturer not Marketer/distributor – Less Media/Endorsement expenses
5. Value creation by High Pricing
6. More emphasis on R&D
7. Strong Financial position
Business Structure & Culture
◦ 1. Contemplating team work culture
◦ 2. Social Responsibility
◦ 3. Taking Risk to change and Challenges for the betterment of products
◦ 4. Cross Functional work culture
◦ 5. Niche Customer segment
◦ Strong R&D – New Tech implementation and focusing on Better designs
Sales And Distribution
1. Better Connect with the Retailers and Distributors
2. Mix of both small and large retailers
3. 6 Strategic accounts and 49 Key accounts
4. Speciality Dealers – Elite Running Stores, Independent New Balance stores, Independent Dealers
5. Dedicate and Independent sales force with entrepreneurial mindsets
6. Sales Based Commission
7. Tech support for small speciality dealers, managing supply chain, performance Metrix, Automations
8. Efficient inventory management
Manufacturing and Supply Strategy
◦ 1. Outsource 75% of USA volumes
◦ 2. close ties with suppliers
◦ 3. Better Information and Knowledge sharing
◦ 4. Lead Time Strategy – Batch Processing 12 Per Batch (8.5 days in 2001 to 2.5 days in 2005) WIP reduction
Human Resource Strategy
◦ 1. Selections of employees was crucial
◦ 2. Must work in Teams
◦ 3. Hands on Training with experienced senior employee.
◦ 4. Work Flexibility
◦ 5. Hourly compensation