(Essay; balanced scorecard) In mid-2004, a study of German accident data in¬ dicated that vehicles made by Porsche AG broke down twice as often dur¬ ing 2003 as cars made by Mazda. The top European performer was ft AG unit Audi. [Source: Chris Reiter and Stephen Power, “Data Show Porsches Broke Down Twice as Much as Mazda Vehicles,” The Wall StreetJournal (June 1, 2004), p. D2.]

a. What do you perceive to be Porsche’s strategy relative to value and grade of its automobiles? How might Porsche modify its strategy to com¬ pete better against Japanese vehicles? Do you think such a change in strategy would be profitable for Porsche? Explain.

b. If Porsche were to change its strategy, develop a balanced scorecard that would provide measurements of the new strategy. LO.1