The R and J Company manufactures a robotic vacuum called the Baxter. The company sells the vacuum to discount stores throughout the country. The Baxter is a basic robotic vacuum with a remote and is significantly less expensive than the robotic vacuum that requires a smartphone and app offered by competitor Stone Manufacturing. Furthermore, the Baxter has experienced production problems that have resulted in significant rework costs. Stone’s model has an excellent reputation for quality.

Required

1. Is R and J’s current strategy that of product differentiation or cost leadership? What about the strategy of Stone Manufacturing?
2. R and J would like to improve quality and decrease costs by improving processes and training workers to reduce rework. R and J’s managers believe the increased quality will increase sales. Sketch a strategy map for R and J.
3. For each of the four perspectives, suggest a measure you would include in a balanced scorecard for R and J.