Question

Maloney Corporation manufactures plastic water bottles. It plans to grow by producing high-quality water bottles at a low cost that are delivered in a timely manner. There are a number of other manufacturers who produce similar water bottles. Maloney believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy.

Required:

a.   Is Maloney's strategy one of product differentiation or cost leadership? Explain briefly.

Identify at least one key element that you would expect to see included in the balanced scorecard:
b.   for the financial perspective.
c.   for the customer perspective.
d.   for the internal business process perspective.
e.   for the learning and growth perspective.

Answer 1

a ) Maloney's strategy is cost leadership strategy. The strategy of the company which adopt this method have objective to become the lowest cost producer in the industry. In this method industries tries to produce high quality products with little differentiation to another companies products in minimum cost. This strategy is usually associated with large-scale businesses offering "standard" products with relatively little differentiation that are readily acceptable to the majority of customers. Occasionally, a low-cost leader will also discount its product to maximise sales, particularly if it has a significant cost advantage over the competition and, in doing so, it can further increase its market share.A strategy of cost leadership requires close cooperation between all the functional areas of a business. Maloney plans to grow by producing high-quality water bottles at a low cost that are delivered in a timely manner. So Maloney's strategy is cost leadership.

b ) For the financial perspctive.

It is the process of looking business in a finacial view point and also includes accounting practices of business.Areas of concern include return on investment, cash flow, return on capital, share price and financial results.

c) For the customer perspective.

It deals with analysing the customer needs and identifying the levels of customer satisfaction. It is concerned with what kinds of customers an organization has, what the needs of those customers are and how best to align the internal processes to meet those needs.

d) For the internal business process perspective.

It carry out the process of alligning the mission of the objective with it's daily operations. It depends on how managers view the business process of the organisation. Managers use this perspective to ensure that the internal business processes meet customers’ needs and expectations in an effective and efficient manner. It also ensures that the needs of the shareholders are balanced against the needs of the customers.

e ) For the learning and growth perspective.

It demanding that knowledge is the most important resource in the modern organisation. It deals with employee training and continuous improvement of the bussiness. Managers use this to carry out employee training programs  that will eployess to the needs of the business operations. Metrics can be put into place to determine where training funds would best be spent. This perspective also covers developing an open organizational culture in which workers are provided with information and knowledge when required to help them perform effectively in their roles.