Oceano T-Shirt Company sells a variety of T-shirts. Oceano presents the following data for its first two years of operations, 2012 and 2013. For simplicity, assume that all purchasing and selling costs are included in the average cost per T-shirt and that each customer buys one T-shirt.

REQUIRED
1. Is Oceano€™s strategy one of value or cost leadership? Explain briefly.
2. Describe briefly the key elements Oceano should include in its balanced scorecard and the reasons it should do so.

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2012 2013 Number of T-shirts purchased Number of T-shirts lost Number of T-shirts sold Average selling price Average cost per T-shirt Administrative capacity in terms of number of customers 200,000 2,000 198,000 %25.00 $10.00 250,000 3,300 246,700 $26.00 $8.50 that can be served 3,750 $1,200,000 $1,162,500 S310 4,000 tive costs $300 Administrative cost per customer Design staff Total design costs Design cost per employee S250,000 275,000 $55,000 $50,000