what the stragic objectives
Naseej Corporation makes a special-purpose machine, Cotton cleaner, used in the textile industry. Naseej has designed the Cotton cleaner machine for 2018 to be distinct from its competitors. It has been generally regarded as a superior machine. Naseej presents the following data for 2017 and 2018. 2017 2018 1 Units of Cotton cleaner produced 200 210 and Sold 2 Selling price SAR 40,000 SAR42,000 3 Direct materials (kilograms) 300,000 310,000 4 Direct materials cost per kilogram SARS SAR8.50 Manufacturing capacity in units of 250 250 Cotton cleaner 6 Total conversion costs SAR2,000,000 SAR2,025,000 7 Conversion cost per unit of capacity SAR8,000 SAR8,100 & Selling and customer-service 100 Customers 95 Customers capacity 9 Total selling and customer-service SAR1,000,000 costs SAR940,500 10 Selling and customer-service SAR 10,000 SAR9.900 capacity cost per customer Nascej produces no defective machines, but it wants to reduce direct materials usage per Cotton cleaner machine in 2018. Conversion costs in each year depend on production capacity defined in terms of Cotton cleaner units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Naseej can support, not the actual number of customers it serves. Nascej has 75 customers in 2017 and 80 customers in 2018. Required: 1. What is the generic strategy Omrania can use? Explain briefly. The strategy Reason 2. Describe key measures you would include in Omrania's balanced scorecard and your reasons for doing so. Strategic objectives 1. 2. 3. 4. Naseej Corporation makes a special-purpose machine, Cotton cleaner, used in the textile industry. Naseej has designed the Cotton cleaner machine for 2018 to be distinct from its competitors. It has been generally regarded as a superior machine. Naseej presents the following data for 2017 and 2018. 2017 2018 1 Units of Cotton cleaner produced 200 210 and Sold 2 Selling price SAR 40,000 SAR42,000 3 Direct materials (kilograms) 300,000 310,000 4 Direct materials cost per kilogram SARS SAR8.50 Manufacturing capacity in units of 250 250 Cotton cleaner 6 Total conversion costs SAR2,000,000 SAR2,025,000 7 Conversion cost per unit of capacity SAR8,000 SAR8,100 & Selling and customer-service 100 Customers 95 Customers capacity 9 Total selling and customer-service SAR1,000,000 costs SAR940,500 10 Selling and customer-service SAR 10,000 SAR9.900 capacity cost per customer Nascej produces no defective machines, but it wants to reduce direct materials usage per Cotton cleaner machine in 2018. Conversion costs in each year depend on production capacity defined in terms of Cotton cleaner units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Naseej can support, not the actual number of customers it serves. Nascej has 75 customers in 2017 and 80 customers in 2018. Required: 1. What is the generic strategy Omrania can use? Explain briefly. The strategy Reason 2. Describe key measures you would include in Omrania's balanced scorecard and your reasons for doing so. Strategic objectives 1. 2. 3. 4
