Strategy, balanced scorecard, merchandising operation. Roberto & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Roberto wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Roberto T-shirt. Roberto presents the following data for its first two years of operations, 2010 and 2011.

Administrative costs depend on the number of customers that Roberto has created capacity to support, not on the actual number of customers served. Roberto had 3,600 customers in 2010 and 3,500 customers in 2011.Required1. Is Roberto ???s strategy one of product differentiation or cost leadership? Explain briefly.2. Describe briefly the key measures Roberto should include in its balanced scorecard and the reasons it should doso.

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2010 200,000 2,000 198,000 2011 1 Number of T-shirts purchased 2 Number of T-shirts discarded 3 Number of T-shirts sold (row 1-row 2) 4 Average selling price 5 Average cost per T-shirt 6 Administrative capacity (number of customers) 7 Administrative costs 8 Administrative cost per customer (row 8 - row 7) 250,000 3,300 246,700 $25.00 $10.00 4,000 $26.00 $8.50 3,750 $1,162,500 $310 $1,200,000 $300