CHAPTER 13 STRATEGY, BALANCED SCORECARD, AND STRATEGIC PROFITABILITY ANALYSIS 13-1 13-2The five key forces to consider in industry analysis are: (a) competitors, (b) potential 13-3Two generic strategies are (1) product differentiation, an organization’s ability to offer 13-4The four key perspectives in the balanced scorecard are: (1) Financial perspective—this 13-6A good balanced scorecard design has several features: 1.It tells the story of a company’s strategy by articulating a sequence of cause-and-effectrelationships.2.It helps to communicate the strategy to all members of the organization by translating thestrategy into a coherent and linked set of understandable and measurable operationaltargets.3.It places strong emphasis on financial objectives and measures in for-profit companies.Nonfinancial measures are regarded as part of a program to achieve future financialperformance. 4.It limits the number of measures to only those that are critical to the implementation ofstrategy.5.It highlights suboptimal tradeoffs that managers may make when they fail to consideroperational and financial measures together. 13-1
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- Fall '12
- Economics, Snyder, Océano