Case study of Strategic Management - New Balance

Of Strategic Management - New Balance - Case Study Example SO strategies use a firm's internal strengths to take advantage of external opportunities. WO Strategies aim at improving internal weaknesses by taking advantage of external opportunities. ST Strategies use a firm's strengths to avoid or reduce the impact of external threats. WT Strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats." (David, 180-181) In order to understand the external environment of the Company it is important to undertake the PESTLE analysis, which is as follows: Political: Decrease in demand due to unstable political situation. Economic: Imposition of Tax or quota from the Government on the major players of market in order to avoid monopoly in the market. Socio-cultural: The population of U.S is getting more conscious about the problems related to health. Any product accused of effecting health of the people can lead to the loss of market share. Technological: Achievement of advanced technology by the competitors resulting in shape of economies to scale. Legal: Legal actions against the company as a result of disease due to the raw material production in unconventional manner. Environmental: The Company can face environmental threat because of the Agro-terrorism. New Balance currently maintains a well-qualified and teamwork-minded staff who is dedicated to innovation and excellence in workmanship. This is a significant resource for a business, which relies on domestic manufacturing facilities as a means of cost control. In many respects, the company maintains quality human resources focus which, in the event of excess capital availability, could drive high-quality, low-cost training to minimize complications with labor. Different manufacturing capabilities give them a...Opening the doors for public trading, as had previously been considered by ownership, would raise the capital required for a variety of projects and investments, both internal and external. Additionally, the company does not experience high media visibility, a crucial element of the entire New Balance philosophy for the general public. These issues are currently a threat to New Balance long-term stability in a business environment where competition is fierce and growth is obtainable. "The Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix is an important matching tool that helps managers develop four types of strategies: So Strategies, WO strategies, ST Strategies, and WT Strategies. New Balance currently maintains a well-qualified and teamwork-minded staff who is dedicated to innovation and excellence in workmanship. This is a significant resource for a business, which relies on domestic manufacturing facilities as a means of cost control. In many respects, the company maintains quality human resources focus which, in the event of excess capital availability, could drive high-quality, low-cost training to minimize complications with labor. Different manufacturing capabilities give them a modest competitive edge in terms of issues of supply chain, however this edge could potentially be lost in the event tha