"J.F. McElwain Shoe Company and the Melville Corporation: The Secrets of Success for an Early Business Alliance in the Shoe Industry"

In 1924, the J.F. McElwain Shoe Company and Thom McAn Shoes formed a partnership, which was one of the earliest business alliances between a manufacturer and retailer in the shoe industry. This partnership proved highly profitable and lasted for fifteen years, eventually resulting in a merger between the two companies. This paper addresses the literature deficiency regarding early business alliances in the shoe industry by analyzing corporate records acquired from the archives at Harvard University and the Manchester Historic Association. In doing so, the question of what made the partnership successful when many in the industry would not even attempt such a strategy is examined. It is found that the success can be attributed to the partnership's focus on low-cost and consistent production, manufacturing efficiency, establishing a national retail presence, competitive pricing, and effective communication that developed respect and trust. Most critically, Strategic Management Accounting information ensured that resolving financial disagreements would be completed in a professional manner. The success of this partnership is reflected in the average net worth, the average percentage of net worth achieved profits, and the ratio of net profit to sales.