Raneiro Sons buys T shirts in bulk applies its
Raneiro & Sons buys T- shirts in bulk, applies its own trendsetting silk- screen designs, and then sells the T- shirts to a number of retailers. Raneiro wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Raneiro T- shirt. Raneiro presents the following data for its first 2 years of operations, 2011 and 2012.

Administrative costs depend on the number of customers that Raneiro has created capacity to support, not on the actual number of customers served. Raneiro had 3,900 customers in 2011 and 3,800 customers in 2012.

1. Is Raneiro’s strategy one of product differentiation or cost leadership? Explain briefly.
2. Describe briefly the key measures Raneiro should include in its balanced scorecard and the reasons it should doso.
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