Asis AM TM 14

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1. Is Ridgecrest’s 2013 strategy one of product differentiation or cost leadership? Explain briefly.

Because in that problem, Ridgecrest said that . It competes and plans to grow by selling high-quality motors at a

Ridgecrest’s product is not differentiated. Its shown from their statement, There are many other manufacturers who p
Ridgecrest always do Efficiently Improvement, Its shown from statement : Ridgecrest believes that continuously impr
implementing its strategy in 2013

2 Customer Reference Maps


X- Axis : Attribute (Rating)
Y-Axis : Product Attributue Desired by Customer
O stand for Ridgecrest
I stand for Kearney
Prespective Customer :
Good Price --> Lover Price
Good Delivery Time --> Shorter delivery time
Good Quality --> Good Product produced
Good design festures --> Various size that meets customer needs
Survei Measures :
Price O
Delivery Time O
Quality
Design Features
1 2

3 Strategy Maps
4 Measure for Balance Scorecard

Perspective Stategic Objective Measures


Financial Perspective Reduce Cost Cost Reduction (IDR) in
Manufacturing Cost
Cost Reduction in Advertising
Cost Reducting in Rebates
Growing Operating Income % of Sales Growth Current Year Vs
Prior Year
% of Sales Growth Company Vs
Other Company in Similar Industry

Increase Operating Income % of Operating Income to Revenue


Customer Perspective Increase Customer Satisfaction % Customer Satisfied with Service
Increase New Customer Comparing Increase of Customer in
Current Year Vs Prior Year
Increase Market Share % of Market Share Increase
Internal Bussiness Process Improve Productivity % of Capacity Used in Machine
(Identify Idle Capacity)
Delivery On Time Time Delivery Reach to Customer Vs
Standard Threshold in Market
Improve Manufacturing Process Getting Certification, example : ISO

Improve Quality % of customer realated complaint


Learning and Growth Aling Employee and Incentivized Number of Training
by Organization Goals
%of Employee trained in process
and quality management
Developing Process Skills % of Employees trained fields
related to their job
igh-quality motors at a low price and by delivering them to customers quickly after receiving customers’ orders.

ther manufacturers who produce similar motors


s that continuously improving its manufacturing processes and having satisfied employees are critical to

Product Attributue Desired by Customer Ridgecrest Kearney


Price Lower Higher
Delivery Time Shorter Longer
Quality High High
Design Features Less More
I
I
OI
I O
3 4 5

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