Analysis Of ABC Company's Strategy And Quality Cost Report: A Comprehensive Review Of Operational Effectiveness And Financial Impact

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Analysis of ABC Company's Strategy and Quality Cost Report: AComprehensive Review of Operational Effectiveness and Financial ImpactQuestion #2The ABC Company manufactures widgets. It competes and plans to grow by selling high-qualitywidgets at low prices and by delivering them to customers quickly. There are many othercompanies in the industry producing similar widgets. ABC believes it needs to continuouslyimprove its manufacturing and delivery processes and that having satisfied employees are bothcritical to its long-term success.a)Based on this information, what type of strategy to you believe ABC is pursuing?Besure to back up your claim with specific evidence.The company is focusing on the following strategy1.Qualitysystems: Quality controls are in place to ensure thatthe manufacturingof thewidgets are of the highest of standards.2.Human resource management policies: ABC ensures that we via it human resourcepolicies that it employees aresatisfiedto ensure that no disruption the production processoccurs.b)List and justifyeight metrics (2 in each of the Balanced Scorecard perspectives) that youbelieve ABC should include in its Balanced Scorecard.1.Financial Perspective1.1.Market Share:Continueto hold it share of the market and grow it share.1.2.Internal Operating Efficiency: Reduce the delivery time and reduceprocessing of the widgets.2.Customer focus: Customer productivity levels are up.c) ABC calculates the following figures:2011 operating income$1,850,0002012 operating income$2,013,000Growth component$85,000Price-recovery component($72,000)Productivity component$150,000In addition, the market for widgets did not grow in 2012, input process did not change in 2012,and ABC reduced its selling price in 2012.Based on this information, do you believe ABC’s increase in operating income in 2012 isconsistent with the strategy you identified in part a?Be sure to justify your answer with

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