Neechie Gear Brand Harvard Case Solution & Analysis

Definition of Success
The definition of success for Neechie Gear brand is to earn profits so that it can make adonation of $15000 yearly for theaboriginalcommunity so that youth belonging to theaboriginal community can achieve higher education and participate in sports. Thechief executive officer (CEO) of Neechie Gear,Kendal Netmaker belongs to the aboriginal community.He knows the importance of education and that’s why he consistently donates to the community. From this donation, the youth of aboriginal community will be able to achieve higher education and can participate in different sports.
Critical Issues
In case of Neechie Gear Brand, following are some of the critical issues:
1. In 2014, net income decreased by 72.5%, from $106,000 to $29,000. Because of the shift from retail to awholesale model, Neechie gear’s high margin retail sales were decreased and thecompany lost profits while dealing with two business models. Dealing with the two business models also created the risk of bankruptcy.
Neechie Gear Brand Harvard Case Solution & Analysis

2. Skilled workforce plays an important role in the success of any firm.Company has lack of skilled workforce, experienced manager and because of its weak financial position, thecompanyis unable to hire new skilled force,iteven does nothave the resources to recruit an experienced manager to take some of the responsibilities.
3. Kendal Netmaker needed a strong management and leadership approach to help the company compete against its well-established competitors. As Netmaker has little experience regarding the business, he needs to develop a well-defined approach to manage his time and skills better than the two years of 2013 and 2014.
4. Company’s marketing strategy is weak, as it has spent only 6.5% of its total revenues on promotion and marketing. For a new business, promotion and marketingare very much important, until and unless customers are not aware of yourproduct, they will not buy your product.
5. How to raise long-term sustainable funding so that aboriginal youth will have an opportunity to achieve higher education and participate in sports?

Situational Analysis
Netmaker does not have much knowledge and experience about the business. He failed to develop an effective and efficient management and leadership strategy to compete with his competitors. In the financial statements of FY 2014, thecompany hasreporteda profit of $29,249.Its profits decreased by 72.5% as compared to the FY 2013.In the FY 2014, thecompany has moved to the wholesale model, but failed to attract the wholesalers. Company’s variable expense (COGS) to the total revenue increased, in 2013, it was 36.5% and in 2014, it has increased to 42%. (See table 4 in appendix)

SWOT analysis
• The company achieved a number of awards such as Saskatoon’s Finest Entrepreneur Award, Better Business Bureau Torch Award in the Retail Category, and Indspire Award in Youth First Nation Category. The company won these awards because of brilliant efforts by the leaders. Leader (Kendal Netmaker) is one of the foremost strengths of the company.

• The company has some loyal customers for its products due to its brilliant success in this region.

• The company has strong brand presence in this region.Thecompany has apresence in two of the biggest malls in the region,Saskatoon and retail mall outlet in Prince Albert..............

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