Course Project: Balanced Scorecard and Strategic Analysis

Introduction

The Course Project will be an individual effort worked at your own pace, not a group project. The project has three deliverables: Part 1, Part 2, and

Part 3 worth a total of 370 points. Here is the schedule when each part is due.

• Part 1will be due in Week 3 and worth 70 points.
• Part 2will be due in Week 5 and worth 140 points.
• Part 3 will be due in Week 8 and worth 160 points.

Part 1: Guidelines and Grading Rubrics

Part 1 will be due in Week 3 and worth 70 points out of 370 points total for the Course Project.

1. Theprofessional profile of the student
2. Statement of intent providing outline of how you plan to tackle the project
3. Draft table of content

Part 2: Guidelines and Grading Rubrics

Part 2 will be due in Week 5 and worth 140 points out of 370 points total for the Course Project.

Titan Computer Company manufactures a tablet computer called AllPad.The company sells these tablets through large big box retailers.This tablet computer is less expensive than similar products sold by AllPad's competitors and has 16GB of internal storage compared to 32GB or more as offered by Pear Corporation, the leading competitor.The Titan Computer Company has recently experienced some increased production costs resulting from significant rework, whereas Pear's reputation for quality is unmatched, and the company sells its product at a significantly higher price point than the AllPad.

Titan Computer Company would like to improve quality and decrease costs.Your group has been tasked as a committee to produce a plan to accomplish this by improving processes and training production workers to reduce rework and failed quality inspections.Your committee believes that increasing quality will ultimately increase sales by at least 3% annually.

Document the following.

1. Is Titan Computer Company's current strategy that of product differentiation or cost leadership?
2. Prepare balanced scorecard for Titan Computer Company with at least one objective in each of the following categories.

• Financial
• Customer
• Internal business process
• Learning and growth

3.Draw a simple customer preference map for Titan Computer Company and Pear Corporation using the following attributes. (See theCustomer Preference Map Example(Links to an external site.)

• Price
• Quality
• Storage capacity

4.Draw a strategy map describing the cause and effect relationship among the strategic objectives you would expect to see in Titan Computer Company's balanced scorecard. (See theStrategy Map Example(Links to an external site.)

5.For each strategic objective, suggest a measure you would recommend in Titan Computer Company's balanced scorecard.

Part 3: Guidelines and Grading Rubrics

Part 3 will be due in Week 8 and worth 160 points out of 370 points total for the Course Project.

As a direct result of your committee's work, quality significantly improved during the latest year while costs and rework decreased.Titan Computer Company also reduced manufacturing capacity because of lowered rework support needs.Sales of AllPad have increased in tandem with a decrease in unit price (following the intent to increase market share).Information about the current period (2016) and prior period (2015) follows.

Type of Data 2015 2016

Units of AIIPad produced and sold 800 900

Selling price $450 $430

Pounds of direct material used 3,200 3,300

Direct material cost per pound $35 $35

Manufacturing capacity in units 12,000 11,000

Total conversion costs $1,800,000 $1,650,000

Conversion cost per unit of capacity $150 $150

Selling and customer service capacity customers 90 customers

Total selling and customer service costs $495,000 $495,000

Selling and customer service capacity cost and customer $500 $550

Assuming Titan had 70 customers in 2015 and 80 customers in 2016,

1. calculate the operating income of Titan for 2015 and 2016;
2. calculate the growth, price recovery, and productivity components that explain the change in operating income from 2015 and 2016; and
3. comment on your answer. What do these components indicate?

Suppose that during 2016, the overall market for AllPads grew 3%. The decrease in the selling price of the AllPad and increase in market share (that is, sales increases greater than 3%) are the result of Titan's strategic actions.

1. Calculate how much of the change in operating income from 2015 to 2016 is due to the industry market size factor, product differentiation, and cost leadership. How does this relate to Titan's strategy and its success in implementation? Explain.
2. Calculate the amount and cost of unused manufacturing capacity and unused selling and customer service capacity at the beginning of 2016 based on actual production and actual number of customers served in 2016.
3. Suppose Titan can add or reduce its selling and customer service capacity in increments of five customers. What is the maximum amount of cost that Titan could save in 2016 by downsizing its selling and customer service capacity?
4. Titan elects not to eliminate any of its unused selling and customer service capacity. Why might Titan choose not to downsize?