The balanced scorecard for a small food-ingredients company is shown below. The information is based on an actual company, and detailed information about its operations and strategy is confidential. You may assume that the firm’s products and services are used by a diverse set of customers, including different types of food processors (Kraft, Heinz, Unilever), restaurant chains, bakeries, supermarkets, and the like. The company is located in a large city.

Required

Based on the information provided, determine what you think is the competitive strategy of the Company Does the balanced scorecard shown above reflect this strategy? Why or why not?

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Goals Scorecard Measures Financial Perspective Capture an increasing share of industry growth Secure the base business while remaining the preferred supplier to our customers Expand aggressively in global markets Company growth versus industry growth Volume trend by line of business; revenue trend by line of business; gross margin Ratio of North American sales to international sales Commercialize a continuous stream of Percentage of sales from products launched within the past five years; gross profit from new products profitable new ingredients and services Customer Perspective Become the lowest-cost supplier Total cost of using our products and services relative to total cost of using competitive products and services Tailor products and services to meet local needs Expand those products and services that Percent of products in R & D pipeline that are being test-marketed by our customers meet customers' needs better than competitors Customer satisfaction Customer survey Internal Perspective Maintain lowest cost base in the industry Our total costs relative to number one competitor; inventory turnover; plant utilization Maintain consistent, predictable production First-pass success rate processes Continue to improve distribution efficiency Percentage of perfect orders Build capability to screen and identify profitable products and services Integrate acquisitions and alliances efficiently Learning and Growth Perspective Link the overall strategy to reward and recognition system Foster a culture that supports innovation and growth Change in customer profitability Revenues per sales dollar Net income per dollar of variable pay Annual preparedness assessment; quarterly Report