Industry 44 Company B (Board of Directors) David Busch: Expected Graduation May 2011, Human Resource Concentration Erica Murray: Expected Graduation December 2010, Marketing Concentration Madison Miller: Expected Graduation May 2011, Finance Concentration

5-Forces Analysis 1. Suppliers: High Power of Threat 2. Buyers: High Power of Threat 3. Substitutes: Low Power of Threat 4. Rivalry: High Power of Threat 5. Threat to Entry: Low Power of Threat

Company Position Company B offers a wide range of models, with a competitive price and an average S/Q rating of 6. Year 14 North America

Key Success Factors  Business Strategy Game High Quality: % of Superior Materials S/Q Rating Best Practices Training  Real Footwear Industry Innovative Design and Technology Manufacturing Management: Nike StrategyNike Strategy Celebrity Appeal

Strength Assessment Critique Key Success Factor Company Score Industry Average Strength Assessment Score S/Q Rating654/5 Model Availability Advertising (Thousands) Delivery Time (Weeks) Shareholder and Top Management Disagreement: S/Q Rating Strength Score 4 vs. 5 Advertising vs. Delivery Time North America Wholesale Segment Year 14 New Balance: Picking Up Its PaceAdvertising is essential-

Market Share Trend Critique Market share increased in Latin America. However, should not lose focus on other three regions.

Financial Performance Critique Net profit as a % on net revenue Financial peak in year 12. Can you peak again after year 14? Will the “building” years end in financial success?

Recommendations for Top Management To create and sustain competitive advantage in relationship with…  Customers: Top management should increase their usage of superior materials and continue to offer a wide variety of models.  Shareholders: Top management should focus on recapturing their lost market share and improving their financial performance to imitate year 12.

Citation  Abelson, Jenn. Picking up Its Pace. The Boston Globe, 2 Apr Web. 12 Sep ance_on_the_outside_looking_in_tries_to_put_its_own_sta mp_on_boston_marathon/?page=2. ance_on_the_outside_looking_in_tries_to_put_its_own_sta mp_on_boston_marathon/?page=2  Cite: Jannarone, John. “Nike Strategy Leaves It Room to Run.” Wall Street Journal (eastern Edition) 16 Mar. 2010: C.10. Web Sep 20...< %20&Fmt=7%20&clientId=15092%20&RQT=309%2 0&VName=PQD>.