Case | HBS Case Collection | January 1980 (Revised April 1994)

New Balance Athletic Shoes

by Kim B. Clark

Abstract

Faced with growth exceeding 100% per year, James Davis, president of New Balance, must decide how to meet the need for additional capacity. Several factors contribute to a climate of extreme uncertainty. Several options are considered, ranging from a second shift to acquiring a plant in Ireland. Sufficient information is provided to allow an analysis of forecasted demand as well as the strategic financial and organizational implications of alternative courses of action.

Keywords: Factories, Labs, and Plants; Forecasting and Prediction; Financial Strategy; Information; Growth Management; Organizational Design; Performance Capacity; Risk and Uncertainty; Apparel and Accessories Industry; Republic of Ireland;

Citation:

Clark, Kim B. "New Balance Athletic Shoes." Harvard Business School Case 680-110, January 1980. (Revised April 1994.)