Ronaldson Promotional Material Company choose cost leadership strategy to instead of their previous high quality goods strategy. There are two different strategies and they bring to different performance measurement such as customer target and internal-process. This report will deeply discuses the effect of the strategy changed. 1.0 Introduction
In this case, Ronaldson Promotional Material Company decide to cost leadership strategy instead of their previous high quality goods strategy. In this report, firstly, it will discuss the differences between these two different strategies. It focuses on how the difference cost of can affect the marketing target and profitable production. Secondly, it will analyses the measurement from four perspectives by the balanced scorecard. There are financial, customer, internal-business-process and learning-and-growth. In this part, it concentrates on analysis of the each perspectives and forecasts the benefits of this strategy. In addition, it compares the different business performance measurement between the current strategy and previous strategy.
2.1 Cost Leadership Strategy in Ronaldson Promotional Material Company Cost leadership strategy can be defined as an organisation’s ability to achieve lower costs relative to competitors through productivity and efficiency through productivity and efficiency improvements, elimination of waste, and tight cost control (Horngren, Datar, Foster, Rajan & Lttner, 2009, p. 464). In this case, Ronaldson Promotional Material Company uses the cheap promotion items and cheap advertising slogans to instead of the higher quality advertisement. It reduce their cost on the production, and then their customers will be changed, because there is a different quality production and then the customers’ demand need to be changed. In addition, the price will be decreased because the lower cost, that may increase the quantity of production sales. It means there is still profitable...
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