Homework #7

Rizo Goal Inc, produces and sells hockey equipment, often custom mode for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that: - Every shipping error over 3 shipping errors per month reduces the customer retention rate by 1.5%. - On average, each day above 3 days from ordered to delivered yields a reduction in the customer retention rate of 1%. - Each day before 3 days from order to delivery yields an increase in the customer retention rate of 1%, on average. - Rizzo Goal Inc.'s current customer retention rate is 80%. - The company estimates that for every 1% increase or decrease in the customer retention rate, market share changes 0.5 in the same direction. - Pixzo coal Incis current market share is 20.4%. Ignoring any other foctors, if the company has 6 shipping erroes this month and an average of 3.5 days from ordered to delivered, a. Determine the new customer retention rate. Round your answer to one decimal place. b. Determine the new market share that Rizzo Goal Inc expects to haye. Roound your answer to one decimal place. t Oever vy was The measure mop also shows which metncs are leading indicators and which measures are lagging indicaters of performence, Doing so, a strategy map shows how each strategic objective contributes to the cineral mission of strateay of the company