Question

How should the davises react to adidas' planned acquisition of reebok? what aspects of new balance's operations strategy should they change?

Answer 1

Answer:

Reduce the suppliers to 2-3 and have long term relationships with them. They should employ an ERP across the functions for better communications

Explanation:

Adidas and Reebok are the two biggest companies in the world that produce sport outfits. Adidas bought over Rebook in 2005 but wanted the new subsidiary to continue to operate under their unique brand name.  

However, there are certain aspects of New Balance’s operations strategy they should change which includes the following;

1. The ecosystems of suppliers they have should be trimmed down to three, for better and effective long-term relationships with the sole aim of cost reduction.  

2. The should also commence the use of Enterprise resource planning (ERP), a business process management software that will help them maintain better communication across functions and be able to always evaluate pipeline to know the varying requests made by customers.