Question
TWS is an established specialty retailer that caters to fashion-conscious professional women. Its sales growth comes through the introduction of new clothing lines, such as
TWS is an established specialty retailer that caters to fashion-conscious professional women. Its sales growth comes through the introduction of new clothing lines, such as its business casual line, and excellent in-store shopping assistance designed to accommodate style-conscious, timeconstrained customers. TWS will leverage its distinctive brand image to drive new clothing sales and margin growth within its target market, which is not very price sensitive. Their goal is to become a store in which women can shop for all their wardrobe needs, from clothing to accessories to shoes, in one convenient location. By developing skilled brand managers who can broaden its product line to accommodate one-stop shopping and by offering greater in-store shopping assistance, TWS hopes to compete with on-line retailers. Central to TWSs growth strategy is the creation of a perfect in-store shopping experience that will entice busy women to visit the store, rather than shop on-line. For several years, TWS has used a balanced scorecard (BSC) for evaluating the performance of its store managers. The performance evaluation results based on the BSC are also used to determine bonus and promotion decisions. Consider their strategy map and the BSC given below.
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Question 1: Describe how well the BSC aligns with the stated strategy of the firm. Your discussion should consider the causal linkages among the various measures across the perspectives.
Question 2: Provide your evaluation of the appropriateness of the measures within each of the four perspectives of the BSC. Your discussion should include, but is not limited to, the following characteristics of the measures: long-term vs. short-term, outcome vs. driver, quantitative vs. qualitative, objective vs. subjective and financial vs. non-financial.
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