Wright company plans to grow by producing high-quality robotic vacuum cleaners delivered to customers at a price acceptable to their customers and in a timely manner. Wright’s vacuum cleaners are differentiated in the market due to their use of new robotic technology using artificial intelligence. Wright is competing against many other manufacturers who produce vacuum cleaners using old technology. To succeed, Wright must continue to produce high-quality and high-tech vacuum cleaners relative to competitors through innovation and design improvements and aggressive research and development.

An analysis of Wright’s operating-income changes between 2018 and 2019 shows the following:

Operating income for 2018 $2,000,000

Add due to industry-market-size 20,000

Deduct growth component (120,000)

Deduct price-recovery component (40,000)

Add productivity component 200,000

Operating income for 2019 2,060,000

Questions:

1) Please identify Wright's strategy and why. 

2) Describe briefly key measures that you would include in Wright's balanced scorecard. You can list at-least 5 measures. 

3) Was Wright’s gain in operating income in 2019 consistent with the strategy you identified and why? 

Please explain your answer by developing clear links between strategy and the three sources of changes in operating income in the table above.

Answer rating: 100% (QA)

1 The increasing popularity of intelligent and connected vacuum cleaners offering voice control and smart navigation features is expected to drive the demand for robotic vacuum cleaners Technical upgr... View the full answer