HW2 - 13-16 Balanced scorecard 1 La Quinta’s 2007...

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Unformatted text preview: 13-16 Balanced scorecard. 1. La Quinta’s 2007 strategy is a cost leadership strategy. La Quinta plans to grow by producing high-quality boxes at a low cost delivered to customers in a timely manner. La Quinta’s boxes are not differentiated, and there are many other manufacturers who produce similar boxes. To succeed, La Quinta must achieve lower costs relative to competitors through productivity and efficiency improvements. 2. Measures that we would expect to see on a La Quinta’s balanced scorecard for 2007 are Financial Perspective (1) Operating income from productivity gain, (2) operating income from growth, (3) cost reductions in key areas. These measures evaluate whether La Quinta has successfully reduced costs and generated growth through cost leadership. Customer Perspective (1) Market share, (2) new customers, (3) customer satisfaction index, (4) customer retention, (5) time taken to fulfill customer orders. The logic is that improvements in these customer measures are leading indicators of whether La Quinta’s cost leadership strategy is succeeding with its customers and helping it to achieve superior financial performance. Internal Business Process Perspective (1) Yield, (2) productivity, (3) order delivery time, (4) on-time delivery. Improvements in these measures are key drivers of achieving cost leadership and are expected to lead to more satisfied customers and in turn to superior financial performance Learning and Growth Perspective (1) Percentage of employees trained in process and quality management, (2) employee satisfaction, (3) number of major process improvements. Improvements in these measures aim to improve La Quinta’s ability to achieve cost leadership and have a cause-and-effect relationship with improvements in internal business processes, which in turn lead to customer satisfaction and financial performance. ...
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