Lakeside T-Shirt Company sells a variety of T-shirts. Lakeside presents the following data for its first two years of operations, 2015 and 2016. For simplicity, assume that all purchasing and selling costs are included in the average cost per T-shirt and that each customer buys one T-shirt.

Required
1. Is Lakeside's strategy one of value or cost leadership? Explain briefly.
2. Describe briefly the key elements Lakeside should include in its balanced scorecard and the reasons it should do so.

Transcribed Image Text:

2016 Number of T-shirts purchased Number of T-shirts lost Number of T-shirts sold Average selling price Average cost per T-shirt Administrative capacity in terms of number of customers 2015 200,000 2,000 198,000 S25.00 S10.00 250,000 3,300 246,700 26.00 S8.50 4,000 that can be served Administrative costs Administrative cost per customer Design staff Total design costs Design cost per employee 3,750 $1,162,500 S310 $1,200,000 S300 $250,000 $50,000 $275,000 $55,000