Problem

When a vehicle is built, it contains parts produced by the original equipment manufacturer $($OEM$).$ When these parts need to be replaced, consumers often purchase after$-$market parts instead of OEM replacement parts because they may be cheaper or of better quality, and may enhance the performance or appearance of the vehicle.

Acme Auto Parts Ltd$.$ is an after$-$market automotive parts manufacturer established in $2000.$ It$$s shares were listed on the Toronto Stock Exchange in $2016.$ The corporation$$s headquarters are in Oakville, Ontario. It has manufacturing plants in Oakville and four other Canadian and US locations. Each location is organized as a separate division. The corporation manufactures electrical components and provides parts to US and Canadian national retail chains that specialize in providing both sound advice and reliable parts to clients with higher$-$than$-$average disposable incomes, like car and truck hobbyists, as well as heavy truck fleet owners. It has several regional warehouses and divisional offices across Canada and the US$.$ It has a reputation for producing high$-$quality parts that are innovative, reliable, and efficient, and backing what it sells through a generous warranty and refund policy.

Acme has weathered a recent economic downturn well enough. Demand for its type of electrical auto parts has remained relatively strong. The corporation has two main competitors, both headquartered in Asia. Though still ranked as the number one after$-$market electronic parts supplier in Canada in terms of total sales dollars, and number four in the US$,$ its competitors are slowly gaining ground. Acme is considered well$-$managed and is respected for the high quality of its electrical components. It does not compete by supplying a full range of after$-$market automotive products, but by identifying new niche markets for electrical components. It enhances its product line by continually searching for innovations in design and performance.

Acme has maintained very good relations with its suppliers and retail chains. These chains actively promote the brand as good value$-$for$-$money and provide valuable feedback to Acme about retail customer purchasing trends and requests for new products. Unlike its competitors, the Acme sales force is well$-$trained to not only sell existing products, but to glean new ideas from customers and communicate these back to Acme management for consideration.

The corporation recognizes that long$-$term success largely depends on continued promotion of Acme products by these retail chains, which means that the chains must be able to continue to earn high gross profits on sales of these same products. However, increased competition from lower$-$priced electrical components produced by Acme$$s Asian competitors has begun to cut into Acme$$s sales and profit margins. In the past, Acme has relied on research and development and the North American patent process to maintain its market share. A few extremely successful product innovations were responsible for most of the past sales and profit levels. However, increased complexity of component design and supply chain issues have created longer timelines to move new products from conception to production. Also, at least one of its competitors$$ activities border on patent infringement but legal remedies are costly$,$ time$-$consuming, and often unsatisfactory.

Acme$$s manufacturing facilities and processes are state$-$of$-$the$-$art. Once products have been successfully designed and tested, they are able to be manufactured very quickly and inexpensively, and in small batches. Acme$$s distribution costs are lower than competitors because its manufacturing plants are closer to customers. In recent years, the threat of shortages of rare, very expensive metals used in the manufacture of many of its products has required the corporation to increase its raw materials inventories. Rapidly developing economies, particularly China, are demanding increasing amounts of these precious metals, and have begun to lock up supplies from African and other producer nations.

Required:

$1.$ Prepare a strategy map for Acme Auto Parts Ltd$.$ Identify one objective for each of the four perspectives. Show specific cause$-$and$-$effect relationships among the objectives.

$2.$ Prepare a balanced scorecard for Acme Auto Parts Ltd$.$ that flows logically from your responses to part $1.$ Provide one performance measure for each objective.