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wy Chen (CFO) is coelemplating a chango in Arategy to save the company fromi inipenting Thensend: As we all know, the commodity paper manufacturing busines
wy Chen (CFO) is coelemplating a chango in Arategy to save the company fromi inipenting Thensend: As we all know, the commodity paper manufacturing busines is all abost cowe0nies of scale. The langest competitors with the lowest cost per unit win. The limind capuchy of airolder machines prohibits us from competing in the high-volume comenodity puper pride. Fin thermore, expanding our cupacity by acquiring a new paper-making machine is out of the qoedion pien the extraondinarily high price tag. Therekore, I propooe that we ahandoe cost rotuation an a atabegic goal and instead punse mantaficturiag flexibility as the key to our future skcom. Chen: Manufacturing flexibility? What does that mean? Martinex: It means we have to abandon our "crank out as inany toens of paper as posiblele" mentality. Instead, we aeed to pursue the lowivolame husiness opportunities that exisa in the nonstandard, specialized paper grades. To sucoced in this regard, we'll beed to improve cur Plexbility in three ways. First, we must improve our ability to swich between paper grades. Risht now, we require an average of four hours to change over to anotber paper grade. Timcly cosiomer deliveries are a function of changeover performance. Second, we beed to expend the range of paper grades that we can manuficture. Currently, we can unly taanufacture thice Puper grades, Our customers must perceive that we are a "oae-stop shop" that can meet all of Riouiced wu shout MPC's new Atatefy'? arnwar ou show the causal links between ile performance measures and show whether the imovement ferfoenance measare should icheremoe of Secreswe cver timb. Frel free to create foeavutes that hasn't hart our may mod oe spocificalty mentioned in the chapter, but monetheless make sethe givea thestraceIt is true that the gibals of the comiphany. 4 What loypoticses afe builh into MPC"' balanced scocecund? Which of these fry polsesen do you to retail outle believe ane thost questionable and mhy? Required: 1. Expond
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