Case study


Genesco Inc.

The organisation that is going to be the focus of this presentation is Genesco Inc., which falls among companies, firms and organizations in the United States of America with Recognizable success.

The organisation which is based in Nashville in the State of Tennessee is a retailer organisation trading majorly in wears such as foot wear, head wear, sports apparel and accessories. These wears are branded or licensed; implying that company trades in the same on behalf of recognized multi-national companies such as puma.


History of the Company

The organisation was initially founded as Genesco Inc. but rather as Jarman Shoe Company back in the year 1924 before changing names to General Shoe Company and Genesco Inc. which currently stands. The name Genesco Inc. was adopted in the year 1959 and for a long time the company carried on with the manufacturing and retail of foot ware upto the year 2002.

The company however saw the need to make a change in the way it conducted its business in the year 2002 and instead of manufacturing and retailing in foot wear, but contracted with third parties to carry out their business. These contracts involved manufacturing of branded foot wear, sports apparel and accessories for companies outside the United States and retailing them in the markets inside the United States and even reaching out of the US markets as Genesco Inc. The current business practice is modelled on this.



Mission and Vision Statements

Genesco Inc. has been catapulted to success through sticking to its vision and mission as a company. This has not only made it acceptable or appealing to its customer base or target force but motivated the employees at the company to work towards a common goal.

The mission statement of Genesco Inc. is to service the footwear and accessory needs of teenagers and young adults and girls in shopping environments both regional and within the United States of America. The vision of the organisation entails leading merchandising expertise, unparalleled to meet he lifestyles of their customers.

From what Genesco Inc. envisions a merchandising that takes into account the needs of the lifestyles of the consumers and also expanding the same not just within the United States but also regionally. Meeting the customers’ needs is key to and company that aspires to profitability and this is only effected through a strategic supply chain formula; reaching out to broader markets is a proof of an effective supply chain management.


Organizational Analysis

Organization’s core competencies

The organisation has shown core competencies in the way it has carried out business and this has placed it at a better place as compared to some periods in its history, for example the periods before the year 2002.

The organisation avails its products to the market in a way that ensures that a target group is reached and sourced maximumly. A marketing strategy that involves setting out groups so as to supply merchandise to target market is adopted. This ensures that there is specialisation for every market and the supply chain moves until good reach the market.

A good example is illustrated in the journeys as adopted by Genesco Inc. as is specializes in teens and has established stores across the Americas most notably in Canada and Puerto Rico. Apart from distributing merchandise for teens in the identified areas, also looks out for trends among the teens in this areas to ensure that it provides only that which the market demands.


Competitive advantages

As an organization Genesco Inc. has a number of competitive advantages over some of the companies that compete for the same market value as it does. One of these is that having previously operated as an industry dealing with foot ware manufacture and sale before opting to contract with third parties to manufacture branded and licensed wears and accessories, it had raised a higher gross margin as compared to other companies within the United Stated and generally in the region. This thus gives it freedom to price what it manufactures for other brands in the excess of the cost used in their production.

The fact it manufactures for brands, some of the well-known such as puma has made its penetration into markets within America and regional markets much easier, as compared to other local based companies that manufactures their own branded and licensed wears as they at times find themselves in situations selling below the cost of production.






Organizational weaknesses

Genesco Inc. does not show a series of organisational weakness, especially in its supply chain management and thus the overall flow of goods to its markets and the cash flow returns.

One organizational weakness that critics have pointed out has also been pointed out by others as a strength. A centralized organisation that exercises control of its supply chain centrally has often been regarded as the strongest. Genesco however has split this into smaller units through which it uses to identify the needs for their customers and supply just what they need to over the eighty stores it has across the Americas.

The smaller units are a weakness in that they take in more resources and personnel, which could be diverted elsewhere to ensure that the organization in more profitable than it is now.


Environmental Analysis

There are a number of environmental factors that impact on the operations of Genesco Inc. as an organisation either in positive or negative ways. These environmental factors can be classified in broad groups such as consumer factors, technological factors, legal factors, political factors and economic factors.

The cultures, norms and lifestyle is one environmental factor that affects Genesco Inc. and thus shows its strength and weaknesses. Being an organisation that deals with wears and accessories, the products that it sells to its customers need to be in line with the cultures, norms and the lifestyle of the target market. Genesco Inc. has shown strength in identifying the needs of the youth population and providing just foe the lifestyle,

The organisation does not however exploit the market fully as it leaves other demographic groups such as grown adults and children. The lack of understanding of the norms, cultures and lifestyles of these age groups prevents it from exploiting the market fully.


Looking further into how environmental factors brings out strengths and weaknesses of Genesco Inc. Technological factors play a key role I the supply chain management in any organisation.

Organisations depend on technology to produce quality for the market. In the foot wear industry, there are certain materials that are most revered by the customer base, for example most customers of Genesco Inc. have shown an Inclination towards leather products. However, shortages in leather at times hits the foot wear industry and thanks to technology, Genesco Inc. substitutes it with faux, which is still acceptable to most of its consumers though they go a slightly lower prices.

The organisation is swell aware of the labour relation laws within the United States and even in branches outside the United States. It has thus provided favourable wages to the employees and additionally introduced among the best medical benefits for the employees. This has reduced picketing and increased production and sales for the organisation.


Into economic factors as part of environmental factors playing a role in the activities of Genesco Inc., The organisation has shown great strengths in producing adequate products for various periods in the economic times of any of its markets. There are always times of economic booms and what this means to organisations such as Genesco Inc. is that customers will be having more to spend and thus they need to increase their production rates. Genesco Inc. has had a steady production chain and has always provided enough goods and merchandise for the periods of economic booms.

Genesco Inc.’s weaknesses have however been exposed in certain times and especially in times of economic recession. The production line remains steady whereas the ability of the customers to buy their products remain low and thus the products have to overstay in the stores and also be sold at slightly lower prices than they should be, resulting into loss of profits for the organisation.


Strategic Issues and Recommendations

The most strategic issue facing Genesco Inc. as a company is reaching high levels of profitability and revenue returns. This is a goal that the organisation is heading towards aided by factors within it and also pegged back by factors that affect its operations.

Looking at some of the strengths of the organisation, its labour cost is reduced and has a perfect network involved in distribution and sale of its products. All this factors contribute to increasing the profitability of the Genesco Inc. as an organisation.

Much of the organisation’s finances are however spent in keeping its structure in place and supporting the small business units it has set up aiding in the distribution and sale of its products domestically and regionally. This makes the goal of attaining high levels of profitability and revenue returns a little bit difficult to attain.




There are however numerous opportunities open to the organisation. If these opportunities can be exploited then the company would effectively work towards attaining maximum profitability and revenue returns.

First, income levels for the countries in which the organisation has set up stores is attaining consistency in its increase. The purchasing power of most of its customers within the United States is increasing and this is the same scenario with markets in Canada, Puerto Rico and other markets. There is also growing demand in the branded and licensed products that the organisations deals in in the market and finally the positive economic growth witnessed is a reason for optimism.

However, competition is fast growing as other players enter into the market fighting for the same customer base as Genesco Inc. The financial capacity to meet up to other players in the market is also a challenge, especially those brands that are well known globally.



The organisation can solve the strategic issue of reaching high levels of profitability and returns by adhering to the following recommendations:-

  • Make use of its existing distribution and sales network to avail its products to the market thus staying ahead of competitors in the same industry.
  • In as much as the small business units makes distribution and sales effective, they should be administered in ways that reduces costs.
  • There should be exploitation of factors such as the growth in economy and increase in income by providing more products akin to the customers’ needs thus tapping the finances available in the market.
  • In order to beat off the competition coming in from other players, the organisation should consolidate its already existing customer base and this is possibly through identifying their needs, for example in ways such as it is doing with journeys among teens.



To conclude, Genesco Inc. as an organisation dealing in the manufacture and sales of branded and licensed wears and accessories within the United States and regionally has grown steadily from its activities.

A lot of opportunities are presented to it just as threats are and making the best out of these will enable it attain its ultimate goal of attaining the maximum possible returns from its sales and thus beat some of its weaknesses. All this lies in effecting and effective supply chain management, ensuring it beats its weaknesses, capitalize on strengths and exploit opportunities without being shaken by threats it faces.







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