Strategy Assignment 2

Strategic analysis : New balance South Africa

Question

• Use appropriate theoretically-substantiated methods and approaches to

analyse the case: New Balance South Africa: Outrunning the opposition.

• Provide recommendations to the company’s leadership and management

regarding plausible future strategic options for their company.

• Key methods and approaches:

▫ Porter's generic strategies

▫ Porter's 5 forces model
▫ Has to be both qualitative and quantitative
Team preparation by 09 June 2010
• 1.     Case Study -New Balance South Africa: Outrunning the
opposition (This case study was distributed at the first study school -
if you don’t have it please make a plan to get a copy).

• 2.     Porter's generic strategies - Pg 140-141 of our prescribed text

book -Thompson,et al OR access on edsonline - online resources

• 3.     Porter's 5 forces model - Pg 60-61-of our prescribed text book

-Thompson,et al OR access on edsonline - online resources

• 4.     Dominant economic features - Read the theory -Pg 58-60 of

our prescribed text book.
Timelines: Due date -19 July 2010

JUNE
Week 2 Week 3 Week 4
(07-13 June) (13-20 June) (21-27 June)
Question analysis Execute tasks - Execute Tasks
strategic analysis
Collecting resources theory and case study Compile Draft 1

Allocating tasks Agree assignment Distribute Draft 1

layout
Begin executing tasks
Plot case study
findings into “models”.

Consult lecture

JUNE -JULY
Week 1 Week 2 Week 3
(28 June -04 July) (05-11 July) (12-18 July)
Review Draft 1 Consolidate version Submit assignment
1 reviews
Consolidate Draft 1
reviews Present final version
for submission
Send out for final review
Assignment layout
Table of Contents
1Overview5
1.1Background – New Balance Case Study5
1.2Approach followed – methods, models and frameworks used5
2Executive Summary (Findings)5
3New Balance Strategic Analysis6
3.1New Balance Strategy6
3.2Industry and Competitive environment analysis7
3.2.1The industry’s dominant economic features (10 marks)7
3.2.2Competitive forces in the industry - Porter’s five-forces model8
3.2.3The industry’s key success factors (10 marks)9
3.3Competitive Advantage10
3.4Leadership Style10
3.5Future key challenges10
4Recommendations11
4.1Future strategies11
4.1.1Competitive Strategy11
4.1.2Differentiation Strategy11
4.1.3Growth Strategy11
4.1.4Marketing Strategy11
5ANNEXURES12
5.1Annexure 1 – xxx12
5.2Annexure 2 – xxx12
5.3Annexure 3 - xx13
6List of References13
Task allocation
Task Task Start Finish Resource Comments
No.
1. Preparatory Reading 07 June 10 12 June 10 All team
1.1 Case study: 07 June 10 12 June 10 All team
New Balance South Africa:
Outrunning the opposition
1.2 Porter's generic strategies 07 June 10 12 June 10 All team Pg 140-141 of our prescribed text book -Thompson,et al
OR access on edsonline - online resources
1.3 Porter's 5 forces model 07 June 10 12 June 10 All team Pg 60-61-of our prescribed text book -Thompson,et al OR
access on edsonline - online resources
1.4 Dominant economic features - 07 June 10 12 June 10 All team Read the theory -Pg 58-60 of our prescribed text book.
1.5 Recommended textbook – 13 June 10 09 June 10 Carol & Jabu Identify relevant assignment sections where the info can
Porter-Competitive advantage be used
1.6 Eds online resources 10 June 10 14 June 10 Carol & Jabu /All Identify relevant assignment sections where the info can
be used
2. Agree assignment structure 07 June 10 12 June 10 All Completed at meeting 09 June 10 – please see
assignment layout attached as “draft assignment”
3 Q 1 &2 of draft assignment 21 June 10 09 July 10 Carol & Jabu Will need complete once all other sections are completed
:Overview & Exec summary
4. Q 3.1: Describe New Balance’s
strategy based on Porter’s 13 June 10 18 June 10 Nala & De Wet Produce draft answer b y finish date
‘Generic Strategies 12 Marks
5. Q 3.2.1:The industry’s 13 June 18 June 10 Zolani & Leah Produce draft answer b y finish date
dominant economic features 10 Marks
6. Q 3.2.2:Competitive forces in 13 June 10 18 June 10 Khulani & Dibate Produce draft answer b y finish date
the industry - Porter’s five- 20 marks
forces model
7. Q 3.2.3:The industry’s key 13 June 10 18 June 10 Nala & De Wet Produce draft answer b y finish date
success factors 10 marks

8. Consolidate all draft answers 19 June 10 21 June Carol & Jabu All – review discussion
into draft 1 & discuss at study -consolidate
group meeting -21 June 10
9. Q.3.3: Competitive advantage 21 June 10 25June 10 De Wet Produce draft answer b y finish date
8 marks
10. Q 3.4: Leadership style 21 June 10 25June 10 Khulani & Dibate Produce draft answer b y finish date
5 marks
11. Q 3.5: Future key challenges 21 June 10 25June 10 Zolani & Leah Produce draft answer b y finish date
Mark Allocation
a. Using Porter’s ‘Generic Strategies”, describe the strategy of New Balance South Africa as outlined
in the case. Do you believe that this strategy was appropriate under the circumstances described in
the case? Motivate your answer. (12 marks)

Mark allocation
b. With reference to the company’s industry and competitive environment, analyse, explain and
provide a combined summary of the following as a frame of reference for your strategic analysis:
(40 marks)

i) The industry’s dominant economic features. (10 marks)

ii) The competitive forces in the industry ( identify and assess, as far as possible, only the elements of those
forces in Porter’s five-forces model of industry competitiveness that you regard relevant to the case). (20
marks)
iii) The industry’s key success factors (10 marks)

(c) What do you believe is the competitive advantage of New Balance? Do you think it is sustainable?
Motivate your answer.. (8 marks)

(d) What is your view of the strategic leadership style of Gary van Rooyen? (5 marks)
 
(e) What do you view as the key challenges for New Balance in the future? (10 marks)

(f) What strategy/strategies should New Balance consider for the future, inter alia taking into account
your answers to questions (b), (c), (d) and (e) above? Motivate and substantiate your answer fully. . (15
marks)

• Presentation (10 marks)

• Total (100 marks)