Question

Erin is the manager of gardening supplies wholesaler SpringTime Inc. The company's vision is to become the leading supplier of gardening materials west of the Mississippi River. In assessing the firm's current state, Erin has determined that the firm could differentiate itself from competitors with an easy-to-use online ordering system and a two-day delivery guarantee. To accomplish this, Erin has determined that SpringTime must spend the next two quarters honing its capabilities for sourcing materials quickly and improving its web development competencies. According to the balanced scorecard approach, what is wrong with Erin's thinking?

Answer 1

Answer:

She has not taken into account for external factors such as customer perceptions and shareholder perceptions.

Explanation:

In the balanced scorecard approach each business operation done by the employees is monitored and the consequences of the operation they conduct is tracked.

Here, Erin has taken to consideration only the factors she can control on the production side of her business operation. She, has not taken into account how the people perceive her product, demand and how the shareholders will react to the customer's reactions.