Business Strategy: New Balance Athletic Shoes UK, Ltd

This report analyzes the business strategies of New Balance Athletic Shoes UK, Ltd, a company that manufactures athletic goods and exports globally. It examines the mission, vision, and values of the organization, as well as its corporate objectives and year-by-year evaluation. The report also explores Porter's Generic Models and Ansoff Matrix, and conducts a SWOT analysis. Additionally, it discusses functional strategies, particularly in marketing.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................5
(1) Mission, Vision , Values...................................................................................................5
1.1 Mission:.......................................................................................................................5
1.2 Vision:.........................................................................................................................5
1.3 Values:.........................................................................................................................5
2) Corporate objectives...........................................................................................................5
3) Year by year evaluation.....................................................................................................5
3.1 Year 11.........................................................................................................................5
3.2 Year 12.........................................................................................................................6
3.3 Year 13.........................................................................................................................6
3.4 Year 14.........................................................................................................................6
3.5 Year 15.........................................................................................................................7
3.6 Year 16.........................................................................................................................7
Porters Generic Models..........................................................................................................7
Ansoff Matrix.........................................................................................................................8
(6) Functional Strategies.......................................................................................................10
6.1 Marketing:..................................................................................................................10
6.2 Operations:.................................................................................................................11
6.3 Supply chain and logistics.........................................................................................11
6.4 Corporate social responsibility..................................................................................12
6.5 Finance.......................................................................................................................12
CONCLUSION..............................................................................................................................13

INTRODUCTION
Business strategy is used to analyse the performance of the company and explained as
the collection of all the judgement and actions that is taken by the organisation to achieve
objectives and to assured a competitor place in the industry. This report analysis the business
strategies of “New Balance Athletic Shoes UK, Ltd” this company manufacture the athletic
goods , shoes , sports wear, for men , women, and children. This company export their products
globally (Borremans, Zaychenko and Iliashenko, 2018). New Balance Athletic shoes company
situated in Warrington, UK and founded in 1982. This report determine the mission, vision and
values of the organisation and also defined about the internal strategies of the firm and about the
environment as well as the evaluation also. All the business strategies and analysis of the
company is mentioned below.
TASK 1
(1) Mission, Vision , Values
1.1 Mission:
Mission of the New Balance company is ever been to help the presentation of contestant, and
with an incomparable concentration on quality and attainment. Means they want to manufacturer
a product that is very comfortable for the athlete to wear and present their performance.
1.2 Vision:
New Balance Athletic shoes organisation want to fixed the modular for consolation and comfort
and set in an industry and in the market that means they want to attract more customer base for
more profits and also they want to satisfy the customer performance and desires.
1.3 Values:
The core values of New Balance athlete believes in squad work with more potentiality and
honesty and they want more satisfaction of the consumers. They are much dedicated to develop
their brand image and want to gain high and reputed position in the market. They are more
customer directed that try to improve and develop the production of the shoes with trends and
fashion that leads to satisfy more consumers needs and satisfaction (rowne and et. al., 2018).

2) Corporate objectives
Corporate objectives are those that characterize the sector as a whole. ... Business goals generally
include fair performance and industry feedback. It is important that business goals cover a range
of key areas where the industry needs to deliver results rather than pursuing an individual goal.
3) Year by year evaluation
3.1 Year 11
The actual performance in year 11 in terms of largest variance is positive with 10.2% as
compared with its actual performance. This indicates that business has poor performance as
compared with projected one (Direction, 2016). On the other hand, the average variance shows
negative change with -8.7%; this indicates actual performance of the business is better than
projected. While smallest variance come up with great improvement in actual performance by -
15.5%.
The score awarded in Leap frog award shown different picture of the company; as average score
change compare to 10 is negative, this indicates poor performance by the firm.
3.2 Year 12
In the year 12, largest variation showed positive percentage with 10.5%, which is greater than
that of 11. This means year 12 has more poor performance than 11, additional to this; the
negative figure of average variation is lower than 11 and it indicates actual performance in terms
of average variance is not as good as year11. Smallest variation of year 12 is greater than year
11; which means it has perform better than year 11.
The data of Leap Frog Award shows that average score earned by company from year 11 is
positive with great difference. This indicates excellent performance by the company compared to
year 11.
3.3 Year 13
The difference between projected and actual performance in terms of largest variance is positive
with +6.5%, this variance is lower than year 11 and 12 which is good performance indicator. On
the other hand; there’s very much less differences in terms of average and smallest variance; this
is good sign for the company in terms of near to accurate projection. This is also a sign of good

technique used by firm to project its performance and effective control of the company on its
activity to reduce the variation between them (Eksandy and Triani, 2019).
The award status in Year 13 shows on an average negative value, this is poor performance
indicator of the company as compared to Year 12.
3.4 Year 14
Compare to years since 11; Year 14 has shown least variation in terms of largest variation with
1.3%. While, average and smallest variation in Year 14 shows bad performance since Year 11
but it’s better than Year 13. The score received from Leap frog award in Year 14 has an average
negative figure which is not good sign for the company. It is to be notices that negative variance
in score table in Year 14 haven’t much variation; this shows company have capacity to improve
score in next year.
3.5 Year 15
This year has shown least variation including year 16; while it has not perform well in terms of
average and smallest variance in year 11, 12, 13, 14 and 16. Controlling largest variation is good
indicator for the company.
The scores from different categories in Year 15 shows average positive figure; this indicates
good performance by the company. Another noticeable thing is same score from G to L; due to
which no changes have been awarded in Year 16.
3.6 Year 16
In year 16; company has shown poorest performance all the time; but like in Year 15 and 14; it
able to control cost and measures to control costs. Scores are almost same as in Year 15 were.
Porters Generic Models
It is very necessary and essential for the organisation to follow this strategy for more
development and growth (Falcão, Ramalho and Nobre, 2020). This strategies is used to enhance
more competition level in the market and it used to analyse the market strategies for the firm.
According to Michael C. Porter, the three strategies of Porter's are much essential scheme,
which might be applied to goods and facilities in the business towards the size. The Porter’s
Three Generic Strategies are “Cost leadership strategy,Differentiation Strategy and Focus
Strategy.

Cost Leadership Strategy : This Strategy support the New Balance Athlete shoes UK Ltd
to reduce the cost of production and delivering cost of goods and services. There are
some ways and path where a company can achieved this strategy and that is rising profits by
minimizing the costs means pleading the middling price of the product and t he other on is rising
their market sharing by pleading less prices during creating a earnings on each sale (Fischer and
et. al ., 2020). If the “ New balance Athlete Shoes UK Ltd company wants to use this strategy
then they must me capable to Approach the superior required to expend in fresh technology,
which will goes to a bigger market share, supply constant capital investment to manage and
control its value benefits , Evolve inexpensive methods to create existing products.
Differentiation Strategy: This strategy give permission to organisation to manufacture
goods and services that present unique impute that consumer can understand to be much
amended than what the other organisation present. They have to be very unique in the market by
using different types of strategies, services and products that can help a company to attract more
more customers and create more customer base.
Focus Strategy: This strategy is focusing on the market and strategies that allows the
company to provide low cost product and rare products in the market. This strategy is focusing
on the particular and targeted market that helps them to reduce and minimizing the threats and
competition.
Ansoff Matrix
Ansoff matrix is important provision implement that supply a structure to support
managers and marketers to enhance their business . This strategy is used to analyse market
planning and the best strategy and opportunities for the company. New Balance Athlete shoes
UK Ltd is multinational brand that provide , manufacture and sale shoes , sports wear for men,
women kids. New Balance is good and high supplier of the athlete shoes. This Company is
founded in1982.
Market Penetration: Market Penetration is used to introduce currents goods and in the
existing and current market. New balance company is sharply boost their products by using
several promoting methods. New balance company spend too much money on advertising and
for promoting their products . New Balance encourage the customers to try their different

products and varieties. They establish different assortment of their existing goods to attract more
customer base (Kim and Hong, 2016).
Market Development: Coming into fresh market and industry with the support of existing
goods encourage the New Balance t enhance more in the market. This company is produce
customised products for the according to customer needs and desires so that will help the
company to attract more consumer towards them. New Balance also acquire their market through
fresh dispersion transmission. New Balance also sell their products on the online marketplace
and with retailer. New Balance company is also concentrating on new portions in current market
by establishing some new and different products.
Product Development: New Balance is better famed for production improvement
through the designing and establishment of fresh goods in its current markets. The basic scheme
the organisation is using is introducing fresh and new goods and also present customised goods.
The organisation continuously investigating and acquire fresh goods such as fresh models of
shoes, vesture. This company develop the customised products by investigating on the customer
needs and desires. The customised products and goods are establish through the market research
and promotions of the products.
(5) SWOT Analysis of NEW Balance Athletic Shoes UK, Ltd.
Strengths Weaknesses
 New Balance Athlete Shoes UK Ltd. is
first company to offer customized shoes
to its customers by which customer can
pick any colour any design they want in
their shoes which provide
differentiation to their products.
 It is part of various philanthropic efforts
from past many years (Lahtinen,
Kuusela and Yrjölä, 2018).
 New Balance Athlete Shoes UK Ltd.
has century of expertise in the industry.
 They have strong marketing and have a
brand presence through e-commerce
 The customized option from their shoes
they offer makes the company costlier
than their competitors.
 Cost of manufacturing is high in USA
which makes it costlier than its
competitors customers not feel
necessary to pay such higher prices.
 With the change in culture and
influence of online businesses,
teenagers don't have specific preference
which affect so much brands and New
Balance Athlete Shoes UK Ltd. is one

sites, online advertisements, etc. of them.
Opportunities Threats
 It is a well known brand and can take
leverage of it to grow worldwide.
 As the customer preference is changing
day by day and they need something
different which increase demand of
customised products that is a
opportunity for the company to grow in
the market.
 The company has opportunity to
diversify their market by making sports
gear.
 There are so many competitors of the
company in the market which offers
more styles and designs which can
reduce its market share.
 The main competitors of New Balance
Athlete Shoes UK Ltd. are Puma, Nike
and Adidas.
 There are so many fake imitations of
the leading brands in cheap prices and
most customers wants the design only
no matter of the quality which leads to
brand losing their profitability.
(6) Functional Strategies
The strategies formulated for short period of time and deals with the specific function of the
organisation for allocation of resources within the functional area is known as Functional
Strategies (Lin, 2016). It helps in coordination between different function of the organisation. It
can be a part of overall strategy or can e serve as a seprate pan for a function. The functional
strategies for different functions are given below:
6.1 Marketing:
Marketing strategies are part of functional strategy which includes the plan for reaching potential
customers and make them the company's loyal customers. According to McCarthy’s Marketing
Mix there are 4P's to make strategy on and they are product, place, price and promotion and
theses are elaborated below:
Product Strategy: The company diversify its business by offering wide range of products like
clothing , shoes, sports, etc. The potential customers of the company on which the company
targets are not price oriented rather they want performance, comfortableness, appearance, quality

and features of the product as it directly affects the sports of the buyer so company should focus
on these aspects of the product. Product diversification is the best strategy for New Balance
Athlete shoes UK Ltd.
Place or Distribution Strategy: The company sells through various channels and have so many
options to increase the sales and marketing. New Balance Athlete shoes UK Ltd. have their own
branded retail outlet except that they also sale through retailers, online sales etc. so there are so
many distribution channels available with them for their customers. This is the best way to reach
the potential and target customers. As their products are also available on the retail stores that
help the company to to get the customers from retail stores also. The company has strong
operations department in Victoria plays a vital role in distribution to these retailers.
Price Strategy: New Balance Athlete shoes UK Ltd. works on the premium pricing strategy as
it has higher manufacturing cost is too high and thus cover this, Athlete shoes are sold by the
company at higher prices.
6.2 Operations:
Procedures govern the activities of an organization, the activity of which manufactures and
transports goods and businesses (Lorenzo, Rubio and Garcés, 2018). A common approach is
common in business practices and both are essential for an organization that competes in an
ever-changing market. With a successful approach, the work of the board's experts can
encourage the use of products, people, bicycles and innovation. In the book Strategy Operations,
writers Nigel Slack and Michael Lewis introduce the term. "An approach is a great example of
choices that shape acquired work skills and a commitment to a common approach," they make
up. action is changing rapidly, so organizations should keep moving and planning ahead. "People
who meet their standards ... die," said Tim Lewko, CEO and Managing Partner of Thinking
Global Dimensions.
6.3 Supply chain and logistics
Supply chain management, as clarified by Michigan State University educators in the content
Supply Chain Logistics Management, includes joint effort between firms to associate providers,
clients, and different accomplices as methods for boosting productivity and creating an incentive
for the end customer. The course reading considers production network the board exercises as
essential choices, and set up "the operational system inside which logistics is performed." It is

the endeavors of various associations cooperating as an inventory network that deals with the
progression of crude materials and guarantee the completed merchandise offer some incentive.
Inventory network chiefs work across different capacities and organizations to guarantee that a
completed item gets to the end buyer as well as meets all prerequisites too logistics is only one
little piece of the bigger, sweeping inventory network organization.
The Council of Supply Chain Management Professionals characterizes logistics as "a feature of
the production network measure that plans, executes and controls the proficient, powerful
forward and turns around stream and capacity of merchandise, benefits and related data between
the purpose of beginning and the purpose of utilization to meet client's prerequisites."
In Supply Chain Logistics Management, Michigan State University's educators characterize
logistics as exercises – transportation, warehousing, bundling and the sky is the limit from there
– that move and position stock and recognize its function regarding synchronizing the production
network. The target behind logistics is to ensure the client gets the ideal item at the correct time
and spot with the correct quality and cost. This cycle can be isolated into two subcategories:
inbound logistics and outbound logistics.
Inbound logistics covers the exercises worried about acquiring materials and afterward taking
care of, putting away and moving them. Outbound logistics covers the exercises worried about
the assortment, support and dissemination to the client. Different exercises, for example, pressing
and satisfying requests, warehousing, overseeing stock and keeping up the balance among
organic market additionally factor into logistics (Morabito, 2016).
6.4 Corporate social responsibility
Corporate Social Responsibility (CSR) is an automated action plan that will help a socially
responsible group, for itself, for its partners and for society at large. By overcoming corporate
social responsibility, also known as corporate citizenship, organizations can be aware of the kind
of impact they have on all sectors of society, including money, and ecology. Participating in CSR
means that, in the normal course of business, an organization works in ways that improve society
and the climate, rather than making a meaningful contribution to them.
Many organizations see CSR as a key part of their image design, recognizing that it will be up to
customers to work with brands they consider more moral. In this sense, CSR exercises can be an

important part of physical advertising. At the same time, some organization founders are
encouraged to participate in CSR because of their feelings.
6.5 Finance
The Finance Act is part of the money management. Money management is the function that is
responsible for the control and organization of money activities. In business, money making
involves obtaining and using essential goods for production activities. The account covers the
financial management of the company (Williams and et. al., 2018). The money administrator
should choose what money is needed and when, how best to use affordable resources and how to
get the necessary funding. The responsibilities of the money manager include money laundering,
fundraising (fundraising) and financing (fundraising).
CONCLUSION
Group tasks are the exercises that create and carry an object or an administration. The purpose of
the advice is to request the training, performance and control of the envelopes. Few people
consider everyday tasks and strategies that turn results or actions into something or management,
but the task approach goes a step further in 'deciding ways of working and goals.

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