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International Operations Management

International Operations Management. MGMT 6367 Case Study Instructor : Yan Qin Fall 2013. Outline. Case study Case: New Balance Case : Crocs. Case Study: New Balance. Please read the case “New Balance Athletic Shoe, Inc.” and think abou t the following questions:

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International Operations Management

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  1. International Operations Management MGMT 6367 Case Study Instructor: Yan Qin Fall 2013

  2. Outline • Case study • Case: New Balance • Case: Crocs

  3. Case Study: New Balance • Please read the case “New Balance Athletic Shoe, Inc.” and think about the following questions: • What are the competitive implications of the Adidas/Reebok transaction for New Balance? You may want to refer to figures in Exhibit 2. • In what aspects did New Balance see itself differentiated from Nike, Adidas, or Reebok?

  4. New Balance – Cont. • New Balance placed a disproportionately large emphasis (relative to sales generated) on serving smaller retailers and ensuring timely delivery of products to them. What are the reasons for them to do that? • New balance performed 25% of its manufacturing in the United states at a time when nearly all of tis competitors were manufacturing 100% of their products in Asia. What are the primary reasons for them to maintain domestic manufacturing?

  5. New Balance – Cont. • Suppose the total US volume of athletic shoes per year is 400 million pairs. How much is the cost penalty resulted from New Balance’s domestic manufacturing? • The ultimate goal for NB2E was 100% delivery of requested product within 24 hours. The dramatic reduction in lead times mandated under NB2E raises the question of whether the initiative was a critical component of New Balance’s strategy or simply an unrealistically ambitious attempt. What is your opinion?

  6. Case study: Crocs • Read the case “Crocs (A): Revolutionizing an industry’s supply chain model for competitive advantage” and think about the following questions: • What are Croc’s core competencies? • How do they exploit these competencies in the future? Consider the following alternatives: • Further vertical integration into materials • Growth by acquisition • Growth by product extension

  7. Crocs – Cont. • To what degree do the three alternatives in Question 2 fit the company’s core competencies, and to what degree to they defocus the company away from its core competencies? • How should Croc’s plan its production and inventory? How do the company’s gross margins affect this decision? What can go wrong?

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