Balanced scorecard and strategy. Dransfield Company manufactures an electronic compoie nent ZP98. This component is significantly less expensive than similar products sold by Dransfield’s competitors. Order processing is very short; however, approximately 10% of products are defective and returned by the customer. Returns and refunds are handled promptly. Yorunt Manufacturing, Dransfield’s main competitor, has a higher-priced product with almost no defects but a longer order-processing time.

REQUIRED 1. Is Dransfield’s current strategy one of product differentiation or cost leadership?

2. Dransfield would like to improve quality without significantly increasing costs or orderprocessing time. Dransfield’s managers believe the increased quality will increase sales.

What elements should Dransfield include in its balanced scorecard?

LO1