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Unformatted text preview: 13-18Strategy, balanced scorecard, merchandising operation.1.Oceano & Sons follows a product differentiation strategy. Oceano’s designs are “trendsetting,” its T-shirts are distinctive, and it aims to make its T-shirts a “must have” for each and every teenager. These are all clear signs of a product differentiation strategy, and, to succeed, Oceano must continue to innovate and be able to charge a premium price for its product.2.Possible key elements of Oceano’s balance scorecard, given its product differentiation strategy:Financial Perspective(1) Increase in operating income from charging higher margins, (2) price premium earned on products.These measures will indicate whether Oceano has been able to charge premium prices and achieve operating income increases through product differentiation.Customer Perspective(1) Market share in distinctive, name-brand T-shirts, (2) customer satisfaction, (3) new customers, (4) number of mentions of Oceano’s T-shirts in the leading fashion magazinesOceano’s strategy should result in improvements in these customer measures that help evaluate whether Oceano’s product differentiation strategy is succeeding with its customers....
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This note was uploaded on 06/01/2011 for the course ACCT 433b taught by Professor Alfredcontreras during the Spring '11 term at National.
- Spring '11
- Managerial Accounting