The questions in this exercise are based on the Nordstrom, Inc., 2004 annual report at http://phx.corporate-ir.netlphoemx.zhtml?c=93295&p=irol-reportsAnnual. You do not need to print the annual report in order to answer the questions.

Required:

1.         What is Nordstrom’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?

2.         Page 3 of the annual report summarizes six measures that Nordstrom collectively refers to as its scorecard. Do these measures constitute a balanced scorecard? Why or why not?

3.         Identify four measures that Nordstrom could include in the financial perspective of a balanced scorecard. How do the measures that you have chosen differ from one another?

Ideally, should each measure increase or decrease overtime?

4.         Identify four measures that Nordstrom could include in the customer perspective of a balanced scorecard. Feel free to create measures that are not explicitly mentioned in the annual report. What statements in the annual report motivated your choices? Ideally, should each of your measures increase or decrease over time?

5.         Identify four measures that Nordstrom could include in the internal business process perspective of a balanced scorecard. Feel free to create measures that are not explicitly mentioned in the annual report. What statements in the annual report motivated your choices? Ideally, should each of your measures increase or decrease overtime?

6.         Identify four measures that Nordstrom could include in the learning and growth perspective of a balanced scorecard. Feel free to create measures that are not explicitly mentioned in the annual report. What statements in the annual report motivated your choices? Ideally, should each of your measures increase or decrease over time?

7.         Create four hypothesis statements (in “if-then” form) that demonstrate four of the causal links between measures that you have chosen.