12-16 Balanced scorecard. Ridgecrest 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 quickly after

receiving customers orders. There are many other manufacturers who produce similar motors. Ridgecrest

believes that continuously improving its manufacturing processes and having satisfied employees are

critical to implementing its strategy in 2013.

1. Is Ridgecrests 2013 strategy one of product differentiation or cost leadership? Explain briefly.

2. Kearney Corporation, a competitor of Ridgecrest, manufactures electric motors with more sizes and

features than Ridgecrest at a higher price. Kearneys 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 12-1

for Ridgecrest and Kearney using the attributes of price, delivery time, quality, and design features.

3. Draw a strategy map as in Exhibit 12-2 with two strategic objectives you would expect to see under

each balanced scorecard perspective.

4. For each strategic objective indicate a measure you would expect to see in Ridgecrests balanced

scorecard for 2013.