Ridgecrest Electric manufactures electric motors. It competes and plans to grow by selling high- quality motors at a low price and by delivering them to customers quickly after receiving customers€™ orders. There are many other manufacturers who produce similar motors. Ridgecrest believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy in 2013.

Required
1. Is Ridgecrest€™s 2013 strategy one of product differentiation or cost leadership? Explain briefly.
2. Kearney Corporation, a competitor of Ridgecrest, manufactures electric motors with more sizes and features than Ridgecrest at a higher price. Kearney€™s motors are of high quality but require more time to produce and so have longer delivery times. Draw a simple customer preference map as in Exhibit 12-1 for Ridgecrest and Kearney using the attributes of price, delivery time, quality, and design features.
In Exhibit 12-1

3. Draw a strategy map as in Exhibit 12-2 with two strategic objectives you would expect to see under each balanced scorecard perspective.
In Exhibit 12-2

4. For each strategic objective indicate a measure you would expect to see in Ridgecrest€™s balanced scorecard for2013.

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Visilog Chipset Scalability Customer service Quality Power and speed Customized chip design Poor Very Good Attribute Rating FINANCIAL PERSPECTIVE Increase Grow operating value CUSTOMER PERSPECTIVE Increase customer satisfaction Increase market share ot Reduce delivery time to customers Meet specified delivery dates Improve BUSINESS PROCESS PERSPECTIVE manufacturing quality and Imptove manufacturing capability Improve Develop process skcill emp information system capabilities and AND GROWTH PERSPECTIVE goals Empower