250_Hwk_Chapter_2A - Customer Financial performance Order...

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ACCT 250 HOMEWORK CHAPTER 2 b4ee3b97efc808631a97c4253729477a726bf02e.xls PAGE 1 OF 1 P2-32 Evidence of a differentiation strategy seems to be the strongest: High quality and craftsmanship Highly skilled/paid workforce Multiple product lines responding to changing customer tastes This strategy was established through the success of the Classic line. It is critical to maintain the classic line in order maintain the firm's image and strategy. P2-33 Strenghts Weaknesses High quality Decreasing sales in Classic & Modern lines Long history High cost of labor & materials in Classic line Product features Strain on manufacturing capacity Loyal workforce Large investment in Classic line inventory Opportunities Threats Deamnd growth: Western and Stewart Inability to attract highly skilled employees Attractive new product lines Order backlog P2-35 Learning and innovation Internal processes Employee training Product defect rates New models developed Product cost per unit Number of new product features Raw materials inventory
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Unformatted text preview: Customer Financial performance Order backlog Gross profit ratio Customer satisfaction Net income Market share Sales growth by product and region P2-41 1 Whereas Levi Strauss has historically used a strategy of differentiation, the new Signature line uses a cost leadership strategy. The potential benefit is an opportunity to reach cost conscious consumers with the new line. The risk is that historical customers of Levi's differentiated products will switch to the new low cost line, an issue called cannabilization. 2 Value chain is unlikely to change much as the process by which low cost jeans are produced is likely to be very similar to the process used to product differentiated products. The balanced scorecard is likely to change to reflect the new strategy. Measures of quality and new features are likely to be de-emphasized. In contrast, measures of cost are likely to increase in importance: cost per yard of fabric, advertising cost per $ of sales, etc....
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This homework help was uploaded on 04/18/2008 for the course ACCTG 250 taught by Professor Rabe during the Spring '08 term at Luther.

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