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Spectrum Book company has 2 divisions: the Brick and Mortar division sell books through more than 100 bookstores throughout the United States; the Internet division
Spectrum Book company has 2 divisions: the Brick and Mortar division sell books through more than 100 bookstores throughout the United States; the Internet division was formed 18 months ago and sells books via the internet. Data for the past year are: Brick and Mortar Division Internet Division Total assets $162,000,000 $15,480,000 noninterest bearing current liabilities 7,020,000 2,520,000 interest expense 1,260,000 418,500 net income (loss) 27,810,000 (1,125,000) tax rate 40% -0- cost of capital 10% 12% question a) evaluate the 2 divisions in terms of economic value added (EVA) question b) explain why it might be better to evaluate the Internet division in terms of a balanced scorecard rather than just using EVA. question c) consider the customer and internal processes dimensions of the balanced scoreboard. Suggest 2 measures for each dimension that would be appropriate for the Brick and Mortar division and 2 measures for each dimension that would be appropriate for the Internet division. question d) a strategy map diagrams the relationship across the dimensions of the balanced scorecard. Identify the potential links between the customer and internal processes dimensions you identified in question c
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