Pineway Electric manufactures electric motors. It competes and plans to grow by selling high-quality motors at a low price and by delivering them to customers in a reasonable time after receiving customers’ orders. There are many other manufacturers who produce similar motors. Pineway believes that continuously improving its manufacturing processes and having satisfied employees Aare critical to implementing its strategy in 2020.

Required

1. Is Pineway’s 2020 strategy one of product differentiation or cost leadership? Explain briefly.
2. Ramsey Corporation, a competitor of Pineway, manufactures electric motors with more sizes and features than Pineway at a higher price. Ramsey’s motors are of high quality but require more time to produce and so have longer delivery times. Draw a simple customer preference map as in Exhibit 13-1 for Pineway and Ramsey using the attributes of price, delivery time, quality, and design features.

3. Draw a strategy map as in Exhibit 13-2 with at least two strategic objectives you would expect to see under each balanced scorecard perspective. Identify what you believe are any 

(a) Strong ties, 

(b) Focal points, 

(c) Trigger points, and 

(d) Distinctive objectives. Comment on the structural analysis of your strategy map.

4. For each strategic objective, indicate a measure you would expect to see in Pineway’s balanced scorecard for 2020.

Transcribed Image Text:

Product Attributes Desired by Customers Price Scalability Customer service Quality Power and speed Customized chip design 0 Visilog 1 Poor 2 3 Chipset + 4 5 Very Good Attribute Rating EXHIBIT 13-1 Customer Preference Map for LICDS