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Ghostbusters, Inc., creates custom made jeans and sells it through its own retail outlets. On the basis of market research, Ghostbusters determines that 10% of
Ghostbusters, Inc., creates custom made jeans and sells it through its own retail outlets. On the basis of market research, Ghostbusters determines that 10% of the overall jeans market consists of "1% millennials" medium- to high-income individuals who are willing to pay a higher price for jeans if the outlets can provide excellent customer service-this includes: free Fiji waters while they wait, friendly employees, the ability to pay by ApplePay, and advanced sign-ups to Coachella. The remaining 90% of the overall market are "price shoppers" who look to buy normal jeans. Ghostbuster's strategy is to focus on the 10% of the rich customers. Ghostbuster's balanced scorecard for 2017 follows. For brevity, the initiatives taken under each objective are omitted. Was Ghostbusters' successful in implementing its strategy in 2017? Explain your answer. Would you have included some measure of employee satisfaction and employee training in the learning-and-growth perspective? Are these objectives critical to Ghostbusters for implementing its strategy? Why or why not? Explain briefly. Explain how Ghostbusters did not achieve its target market share in the total jeans market but still exceeded its financial targets. Is "market share of overall jeans market" the correct measure of market share? Explain briefly. Is there a cause-and-effect linkage between improvements in the measures in the internal-business-process perspective and the measure in the customer perspective? That is, would you add other measures to the internal-business-process perspective or the customer perspective? Why or why not? Explain briefly. Do you agree with Ghostbusters' decision to exclude measures of changes in operating income from productivity improvements under the financial perspective of the balanced scorecard? Why
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