New Balance Quiz Answers PDF

**[Quiz - CASE - New Balance (2) Analysis questions ]** Here are 40 multiple-choice questions based on the slides about the New Balance case study. 1. **What was New Balance's global sales ranking in 2004?** - a\) Second - **b) Fifth** - c\) Fourth - d\) Third 2. **I...

**[Quiz - CASE - New Balance (2) Analysis questions ]** Here are 40 multiple-choice questions based on the slides about the New Balance case study. 1. **What was New Balance's global sales ranking in 2004?** - a\) Second - **b) Fifth** - c\) Fourth - d\) Third 2. **In the U.S. market, what position did New Balance hold in terms of market share?** - a\) First - **b) Third** - c\) Second - d\) Fourth 3. **Which key aspect differentiates New Balance's product offerings?** - **a) Focus on performance and fit** - b\) Limited edition designs - c\) High-fashion styles - d\) Sponsorships with athletes 4. **What was a significant characteristic of New Balance's products?** - a\) Frequent seasonal releases - b\) Celebrity endorsements - **c) Wide variety of widths** - d\) Limited lifetime 5. **Why did New Balance prioritize small, independent retailers?** - **a) They cater to dedicated runners** - b\) For exclusive branding - c\) To save on advertising costs - d\) Lower product volume requirements 6. **New Balance's focus on manufacturing rather than marketing is best summarized by which phrase?** - a\) "Endorsed by Athletes" - **b) "We are manufacturers, not marketers"** - c\) "High volume, high demand" - d\) "Innovation through partnerships" 7. **What advantage does New Balance gain from private ownership?** - a\) Access to venture capital - b\) Ability to sponsor global events - **c) Flexibility for long-term investments** - d\) Enhanced brand visibility 8. **What percentage of New Balance\'s manufacturing is conducted domestically?** - a\) 50% - **b) 25%** - c\) 75% - d\) 10% 9. **Which products did New Balance manufacture offshore?** - a\) High-performance shoes only - b\) Custom-order shoes - **c) High-volume, predictable styles** - d\) Shoes with specific width requirements 10. **What is one of the major costs New Balance incurs by keeping domestic manufacturing?** - a\) Additional marketing expenses - **b) \$50 million annually** - c\) Increased import tariffs - d\) Higher wages for executives 11. **One benefit of domestic manufacturing for New Balance is:** - **a) Faster response to retailer requests** - b\) Reduced product costs - c\) Larger inventory sizes - d\) Reduced lead times from Asian suppliers 12. **Why does New Balance retain "Made in the USA" branding?** - a\) To reduce shipping times - **b) To build goodwill with U.S. customers** - c\) To gain international recognition - d\) To meet retail pricing standards 13. **The NB2E initiative aims to reduce:** - a\) Product pricing - **b) Manufacturing lead times** - c\) Employee wages - d\) Distribution costs 14. **How does NB2E plan to improve order delivery?** - **a) By transitioning to single-pair flow** - b\) By outsourcing logistics - c\) By reducing product quality - d\) By increasing factory size 15. **What key strategy did New Balance adopt in relation to Asian suppliers?** - a\) Outsource all production - b\) Avoid supplier relationships - **c) Develop close relationships to reduce lead times** - d\) Only purchase raw materials 16. **New Balance's choice of independent sales agents provides which advantage?** - **a) High-powered incentives for agents** - b\) Lower product prices - c\) Improved advertising reach - d\) Focus on online sales 17. **How did New Balance use its sales force automation system?** - a\) To replace sales representatives - b\) To decrease product prices - **c) To allow remote order placement** - d\) To improve product design 18. **New Balance's teamwork emphasis is reflected in:** - a\) Individual-based rewards - b\) No formal training - **c) Hiring people with team-based experience** - d\) Restricting cross-functional roles 19. **New Balance's competitive position was challenged by:** - a\) A merger between Nike and Puma - b\) Decrease in product demand - **c) Adidas' acquisition of Reebok** - d\) Loss of major retail accounts 20. **What effect did the Adidas/Reebok merger have on New Balance's market position?** - a\) No significant change - **b) Moved New Balance to a distant third** - c\) Improved New Balance's market share - d\) Reduced product pricing competitiveness 21. **How does higher market share benefit companies like Adidas?** - **a) Increased bargaining power with suppliers** - b\) Enhanced product design options - c\) Reduced advertising needs - d\) Greater flexibility in pricing 22. **What approach did New Balance choose in response to the Adidas/Reebok transaction?** - a\) Cut costs by eliminating domestic production - b\) Increase sponsorships - **c) Focus on partnerships with retailers** - d\) Acquire another brand 23. **NB2E's goal for delivery time is:** - a\) 48 hours - b\) 72 hours - **c) 24 hours** - d\) 12 hours 24. **What was one obstacle New Balance faced in implementing NB2E?** - a\) Lack of marketing support - **b) Difficulty in reducing inventory reliance** - c\) Limited workforce flexibility - d\) Restricted product offerings 25. **New Balance's domestic factories aimed to reach a lead time of:** - a\) 12 hours - **b) Less than 24 hours** - c\) 48 hours - d\) Over 72 hours 26. **What is a central concept illustrated by the New Balance case?** - a\) Importance of celebrity endorsements - **b) Role of operations in competitive strategy** - c\) Dominance of high-volume production - d\) Necessity of reducing product variety 27. **The BTO model is used when:** - **a) Products require multiple widths and sizes** - b\) Demand is highly predictable - c\) Lead times need to be long - d\) Inventory costs are irrelevant 28. **In contrast, the BTS model is effective when:** - **a) Products have long life cycles** - b\) There is a large SKU range - c\) Products are high-fashion - d\) Shorter lead times are necessary 29. **What is one risk of New Balance's private ownership?** - a\) Limited control over suppliers - **b) Restricted access to public capital** - c\) Increased operational costs - d\) Lower employee retention 30. **New Balance's training for new hires includes:** - **a) A six-to-eight week dedicated team period** - b\) Individual-based tasks - c\) Focus on sales skills only - d\) Immediate role placement 31. **The "Made in USA" label provides New Balance with:** - a\) Tax incentives - b\) Increased international sales - **c) Stronger domestic brand loyalty** - d\) Lower manufacturing costs 32. **NB2E is ultimately designed to:** - **a) Enhance operational responsiveness** - b\) Increase international expansion - c\) Replace human labor with automation - d\) Diversify product offerings 33. **Which factor does New Balance prioritize less than its competitors?** - a\) Product quality - b\) Fit and performance - **c) Marketing and advertising** - d\) Lead time reduction 34. **How does NB2E affect New Balance's inventory costs?** - a\) Increases warehouse space - b\) Minimizes employee hours - **c) Aims to reduce finished goods inventory** - d\) Reduces sales volume 35. **What is a benefit of New Balance's lean manufacturing approach?** - a\) Expanded retail partnerships - **b) Lower lead times in domestic production** - c\) Reduced product lines - d\) Higher inventory levels 36. **Why does New Balance prefer independent sales agents?** - a\) Lowers production costs - b\) Increases advertising efficiency - **c) Incentivizes through commissions** - d\) Provides international expansion 37. **New Balance's annual "cost penalty" from domestic manufacturing is:** - a\) \$100 million - b\) \$25 million - **c) \$50 million** - d\) \$10 million 38. **Why did New Balance choose not to own factories in Asia?** - a\) No interest in outsourcing - b\) Preferred to centralize all production - **c) Wanted flexibility with foreign suppliers** - d\) High cost of labor in Asia 39. **What advantage does NB2E provide in the long term?** - a\) Greater market share - **b) Consistent, reliable lead times** - c\) Reduced brand visibility - d\) More product lines 40. **Which of the following is a key competitive element for New Balance?** - a\) Reducing product costs - b\) Expanding marketing reach - **c) Enhancing product fit and width options** - d\) Eliminating domestic production