Question: Melissa Corporation makes a special purpose machine D4H used in

Melissa Corporation makes a special- purpose machine, D4H, used in the textile industry. Melissa has designed the D4H machine for 2012 to be distinct from its competitors. It has been generally regarded as a superior machine. Melissa presents the following data for 2011 and 2012.

Melissa produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2012. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer- service costs depend on the number of customers that Melissa can support, not the actual number of customers it serves. Melissa had 77 customers in 2011 and 82 customers in 2012.

1. Is Melissa’s strategy one of product differentiation or cost leadership? Explain briefly.
2. Describe briefly key measures that you would include in Melissa’s balanced scorecard and the reasons for doingso.
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  • CreatedJanuary 15, 2015
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