Erin is the manager of gardening supplies wholesaler SpringTime Inc. The company's vision is to become the leading supplier of gardening materials west of the Mississippi River. In assessing the firm's current state, Erin has determined that the firm could differentiate itself from competitors with an easy-to-use online ordering system and a two-day delivery guarantee. To accomplish this, Erin has determined that SpringTime must spend the next two quarters honing its capabilities for sourcing materials quickly and improving its web development competencies. According to the balanced scorecard approach, what is wrong with Erin's thinking?

Question

Quizplus · Accepted Answer

In the balanced scorecard approach, the four questions asked by managers are 1) "How do customers view us?" 2) "How do we create value" 3) "What core competencies do we need?" and 4) "How do shareholders view us?" Erin has determined that SpringTime will create value through its online ordering system and needs core competencies related to sourcing supplies and web development. But she has not addressed how customers and shareholders view the company's products or services and where they should be improved (e.g., quality, speed…) and how customers and shareholders might perceive and value this new service.

Erin Is the Manager of Gardening Supplies Wholesaler SpringTime Inc