A B D 1 Question 6: 12 marks G H 2 3 4 Fantastic Lighting Corporation has been manufacturing high-quality home lighting systems for more than 80 years. The company's first 5 products in the 1920s - the Classic line-were high-quality floor lamps and table lamps made of the highest quality materials with features 6 that other lighting manufacturers did not attempt multiple switches, adjustable heights, and stained glass. In the 1950s and 1960s, the 7 company introduced a number of new products that were popular at the time, including track lighting and lava lamps, which becomes the 8 9 company's Royal line. In keeping with its brand image, Fantastic Lighting ensured that these new products also met the highest standards of quality 10 in the industry. A new customer style emerged in the 1960s and 1970s, which resulted in another new line of products, Lighting Moon. It was followed in more recent years by two new product lines, HiTech and Western, Christine Woods, the company's chief financial 11 officer, had become concerned about the performance of some of the product lines in recent years. Although total sales were growing at 12 an acceptable rate, approximately 12% per year, the sales mix was changing significantly, as shown in the following product ine sales 13 report. Christine was particularly concerned about the Classic line because of its continuous decrease in sales and its high costs 14 Because of the high level of craftsmanship required for the Classic line, it always had higher-than-average costs for labor and materials 15 Furthermore, attracting and retaining the highly skilled workers necessary for this product line was becoming more and more chalenging. 16 The workers in the Classic line in 2019 were likely to be older and very loyal employees who were paid well because of their skills and 17 Seniority. These workers displayed the highest level of workmanship in the company and, some would argue, in the entire industry. Few 18 newer employees seemed eager to learn the skills required in this product line 19 20 21 Product Lines Sales Report Classic 22 Lighting Moon HiTech Royal Western 23 2016 20% 33% 5% 40% 2% 24 2017 16 35 11 34 4 25 2018 14 33 14 33 26 2019 9 31 18 31 11 27 28 Moreover, manufacturing capacity was experiencing an increasing strain. The sharper-than-expected increase in sales for the Western 29 styles had created a backlog of orders for them, and plan managers had been scrambling to find the plant capacity to meet the demand. Some plant supervisors suggested shutting down the Classic line to make capacity for the Western line. Some managers of the HiTech 31 Ine argued the same thing. However, eliminating the Classic ine would make obsolete about $233,000 worth of raw materials inventory 32 that is used only in the manufacture of Classic line products, 6 30 34 Matt Hughes, the firm's sales manager, acknowledged that sales of the Classic line were more and more difficult to find and that derrand 35 for the new styles was increasing. He also noted that the sales of these products reflected significant regional differences. The Western 36 line was popular in the South and the West, and the Lighting Moon, Royal, and HiTech styles were popular nationaly. The Classic Ine 37 tended to have strong support only in the northeast states. In some sales districts in these states, Classic sales represented a relatively 38 high proportion of total sales. 39 40 Johnny Archibald, the firm's CEO, is aware of these concerns and has decided to set up a task force to consider the fvm's options and strategy in regard to these problems 19 20 21 Product Lines Sales Report . 4 Classic 22 Lighting Moon 11/Tech Royal Western 23 2016 20% 33% 5% 40% 24 2% 2017 16 35 11 34 25 2018 14 33 14 33 6 26 2019 9 31 18 31 27 28 Moreover, manufacturing capacity was experiencing an increasing strain. The sharper-than-expected increase in sales for the Western 29 styles had created a backlog of orders for them, and plan managers had been scrambling to find the plant capacity to meet the demand. 30 Some plant supervisors suggested shutting down the Classic line to make capacity for the Western line. Some managers of the HiTech 31 line argued the same thing. However, eliminating the Classic line would make obsolete about $233,000 worth of raw materials inventory 32 that is used only in the manufacture of Classic ine products. 33 34 Matt Hughes, the firm's sales manager, acknowledged that sales of the Classic line were more and more difficult to find and that demand 35 for the new styles was increasing. He also noted that the sales of these products reflected significant regional differences. The Western 36 line was popular in the South and the West, and the Lighting Moon, Royal, and HiTech styles were popular nationally. The Classic line 37 tended to have strong support only in the northeast states. In some sales districts in these states, Classic sales represented a relatively 38 high proportion of total sales. 39 40 Johnny Archibald, the firm's CEO, is aware of these concerns and has decided to set up a task force to consider the firm's options and strategy in regard to these problems. 42 43 44 Required: 45 a) Prepare a balanced Scorecard for Fantastic Lighting Corporation. For each perspective (section of the balanced Scorecard), develop at 46 at least 2 (max. 3) measurable critical success factors and corresponding KPIs that Fantastie Lighting Corporation might use to measure performance toward the goals of each perspective. b) Provide a brief summary for the firm's CEO/Executive Team explaining to them the application and importance a balanced Scorecard and KPIs and things that the CEO should consider. (For those of you at the last fireside chat, please do consider drawing from some of the 51 points presented by the CEO that you heard froml) 52 53 54 55 56 01 Ans 02 (ReadOnly) Q2 Ans Q3 (ReadOnly) Q3 Ans 04 (ReadOnly) 04 AI 47 48 49 50 G H K NM 3 Fantastic Lighting Corporation has been manufacturing high-quality home lighting systems for more than 80 years. The company's 4 first products in the 1920s - the Classic line - were high-quality floor lamps and table lamps made of the highest-quality materials 5 6 with features that other lighting manufacturers did not attempt: multiple switches, adjustable heights, and stained glass. In the 1950s 7 and 1960s, the company introduced a number of new products that were popular at the time, including track lighting and lava 8 lamps, which becomes the company's Royal line. In keeping with its brand image, Fantastic Lighting ensured that these new 9 products also met the highest standards of quality in the industry. A new customer style emerged in the 1960s and 1970s, which 10 resulted in another new line of products, Lighting Moon. It was followed in more recent years by two new product lines, HiTech and 11 Western. Christine Woods, the company's chief financial officer, had become concerned about the performance of some of the 12 product lines in recent years. Although total sales were growing at an acceptable rate, approximately 12% per year, the sales mix 13 was changing significantly, as shown in the following product line sales report. Christine was particularly concerned about the 14 Classic line because of its continuous decrease in sales and its high costs. Because of the high level of craftsmanship required for 15 the Classic line, it ways had higher-than-average costs for labor and materials. Furthermore, attracting and retaining the highly 16 skilled workers necessary for this product line was becoming more and more challenging. The workers in the Classic line in 2019 17 were likely to be older and very loyal employees who were paid well because of their skills and seniority. These workers displayed 18 the highest level of workmanship in the company and, some would argue, in the entire industry. Few newer employees seemed eager to learn the skills required in this product line. 19 20 21 Product Lines Sales Report Classic Lighting HiTech Royal Western 22 Moon 23 2016 20% 33% 5% 40% 2% 24 2017 16 35 11 34 4 25 2018 14 33 14 33 6 26 2019 9 31 18 31 11 27 28 Moreover, manufacturing capacity was experiencing an increasing strain. The sharper-than-expected increase in sales for the 29 Western styles had created a backlog of orders for them, and plan managers had been scrambling to find the plant capacity to meet 30 the demand. Some plant supervisors suggested shutting down the Classic line to make capacity for the Western line. Some 31 managers of the HiTech line argued the same thing. However, eliminating the Classic line would make obsolete about $233,000 32 worth of raw materials inventory that is used only in the manufacture of Classic line products. A B D 1 Question 6: 12 marks G H 2 3 4 Fantastic Lighting Corporation has been manufacturing high-quality home lighting systems for more than 80 years. The company's first 5 products in the 1920s - the Classic line-were high-quality floor lamps and table lamps made of the highest quality materials with features 6 that other lighting manufacturers did not attempt multiple switches, adjustable heights, and stained glass. In the 1950s and 1960s, the 7 company introduced a number of new products that were popular at the time, including track lighting and lava lamps, which becomes the 8 9 company's Royal line. In keeping with its brand image, Fantastic Lighting ensured that these new products also met the highest standards of quality 10 in the industry. A new customer style emerged in the 1960s and 1970s, which resulted in another new line of products, Lighting Moon. It was followed in more recent years by two new product lines, HiTech and Western, Christine Woods, the company's chief financial 11 officer, had become concerned about the performance of some of the product lines in recent years. Although total sales were growing at 12 an acceptable rate, approximately 12% per year, the sales mix was changing significantly, as shown in the following product ine sales 13 report. Christine was particularly concerned about the Classic line because of its continuous decrease in sales and its high costs 14 Because of the high level of craftsmanship required for the Classic line, it always had higher-than-average costs for labor and materials 15 Furthermore, attracting and retaining the highly skilled workers necessary for this product line was becoming more and more chalenging. 16 The workers in the Classic line in 2019 were likely to be older and very loyal employees who were paid well because of their skills and 17 Seniority. These workers displayed the highest level of workmanship in the company and, some would argue, in the entire industry. Few 18 newer employees seemed eager to learn the skills required in this product line 19 20 21 Product Lines Sales Report Classic 22 Lighting Moon HiTech Royal Western 23 2016 20% 33% 5% 40% 2% 24 2017 16 35 11 34 4 25 2018 14 33 14 33 26 2019 9 31 18 31 11 27 28 Moreover, manufacturing capacity was experiencing an increasing strain. The sharper-than-expected increase in sales for the Western 29 styles had created a backlog of orders for them, and plan managers had been scrambling to find the plant capacity to meet the demand. Some plant supervisors suggested shutting down the Classic line to make capacity for the Western line. Some managers of the HiTech 31 Ine argued the same thing. However, eliminating the Classic ine would make obsolete about $233,000 worth of raw materials inventory 32 that is used only in the manufacture of Classic line products, 6 30 34 Matt Hughes, the firm's sales manager, acknowledged that sales of the Classic line were more and more difficult to find and that derrand 35 for the new styles was increasing. He also noted that the sales of these products reflected significant regional differences. The Western 36 line was popular in the South and the West, and the Lighting Moon, Royal, and HiTech styles were popular nationaly. The Classic Ine 37 tended to have strong support only in the northeast states. In some sales districts in these states, Classic sales represented a relatively 38 high proportion of total sales. 39 40 Johnny Archibald, the firm's CEO, is aware of these concerns and has decided to set up a task force to consider the fvm's options and strategy in regard to these problems 19 20 21 Product Lines Sales Report . 4 Classic 22 Lighting Moon 11/Tech Royal Western 23 2016 20% 33% 5% 40% 24 2% 2017 16 35 11 34 25 2018 14 33 14 33 6 26 2019 9 31 18 31 27 28 Moreover, manufacturing capacity was experiencing an increasing strain. The sharper-than-expected increase in sales for the Western 29 styles had created a backlog of orders for them, and plan managers had been scrambling to find the plant capacity to meet the demand. 30 Some plant supervisors suggested shutting down the Classic line to make capacity for the Western line. Some managers of the HiTech 31 line argued the same thing. However, eliminating the Classic line would make obsolete about $233,000 worth of raw materials inventory 32 that is used only in the manufacture of Classic ine products. 33 34 Matt Hughes, the firm's sales manager, acknowledged that sales of the Classic line were more and more difficult to find and that demand 35 for the new styles was increasing. He also noted that the sales of these products reflected significant regional differences. The Western 36 line was popular in the South and the West, and the Lighting Moon, Royal, and HiTech styles were popular nationally. The Classic line 37 tended to have strong support only in the northeast states. In some sales districts in these states, Classic sales represented a relatively 38 high proportion of total sales. 39 40 Johnny Archibald, the firm's CEO, is aware of these concerns and has decided to set up a task force to consider the firm's options and strategy in regard to these problems. 42 43 44 Required: 45 a) Prepare a balanced Scorecard for Fantastic Lighting Corporation. For each perspective (section of the balanced Scorecard), develop at 46 at least 2 (max. 3) measurable critical success factors and corresponding KPIs that Fantastie Lighting Corporation might use to measure performance toward the goals of each perspective. b) Provide a brief summary for the firm's CEO/Executive Team explaining to them the application and importance a balanced Scorecard and KPIs and things that the CEO should consider. (For those of you at the last fireside chat, please do consider drawing from some of the 51 points presented by the CEO that you heard froml) 52 53 54 55 56 01 Ans 02 (ReadOnly) Q2 Ans Q3 (ReadOnly) Q3 Ans 04 (ReadOnly) 04 AI 47 48 49 50 G H K NM 3 Fantastic Lighting Corporation has been manufacturing high-quality home lighting systems for more than 80 years. The company's 4 first products in the 1920s - the Classic line - were high-quality floor lamps and table lamps made of the highest-quality materials 5 6 with features that other lighting manufacturers did not attempt: multiple switches, adjustable heights, and stained glass. In the 1950s 7 and 1960s, the company introduced a number of new products that were popular at the time, including track lighting and lava 8 lamps, which becomes the company's Royal line. In keeping with its brand image, Fantastic Lighting ensured that these new 9 products also met the highest standards of quality in the industry. A new customer style emerged in the 1960s and 1970s, which 10 resulted in another new line of products, Lighting Moon. It was followed in more recent years by two new product lines, HiTech and 11 Western. Christine Woods, the company's chief financial officer, had become concerned about the performance of some of the 12 product lines in recent years. Although total sales were growing at an acceptable rate, approximately 12% per year, the sales mix 13 was changing significantly, as shown in the following product line sales report. Christine was particularly concerned about the 14 Classic line because of its continuous decrease in sales and its high costs. Because of the high level of craftsmanship required for 15 the Classic line, it ways had higher-than-average costs for labor and materials. Furthermore, attracting and retaining the highly 16 skilled workers necessary for this product line was becoming more and more challenging. The workers in the Classic line in 2019 17 were likely to be older and very loyal employees who were paid well because of their skills and seniority. These workers displayed 18 the highest level of workmanship in the company and, some would argue, in the entire industry. Few newer employees seemed eager to learn the skills required in this product line. 19 20 21 Product Lines Sales Report Classic Lighting HiTech Royal Western 22 Moon 23 2016 20% 33% 5% 40% 2% 24 2017 16 35 11 34 4 25 2018 14 33 14 33 6 26 2019 9 31 18 31 11 27 28 Moreover, manufacturing capacity was experiencing an increasing strain. The sharper-than-expected increase in sales for the 29 Western styles had created a backlog of orders for them, and plan managers had been scrambling to find the plant capacity to meet 30 the demand. Some plant supervisors suggested shutting down the Classic line to make capacity for the Western line. Some 31 managers of the HiTech line argued the same thing. However, eliminating the Classic line would make obsolete about $233,000 32 worth of raw materials inventory that is used only in the manufacture of Classic line products