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Microcom Inc.
a) Financial – Microcom is currently operating at a loss of $1,000,000 and struggling to survive in a very competitive market. It is therefore imperative that Microcom strategizes to increase profits. This can be done by looking at what is driving the net loss. Are sales too low? Are expenses to high? Which expenses – variable and/or fixed? From this information, Leming can then make decisions on how to drive up profits.
Customer – Customers drive up sales and could also drive up costs when they are not satisfied with the product by returning them, exchanging them and complaining about them. The strategy here is how to satisfy the customers. This could be done by providing better quality product and services.
Business Process – It has been determined that low product quality is a main driving force behind Microcom’s operating loss. From that, Leming needs to put in processes to ensure quality is measured at all stages of the production cycle from components provided by suppliers to the finished product.
Learning and Growth – Even after Microcom fulfills the prior three objectives, the company needs to continuous monitor them in order to achieve greater efficiency and effectiveness. There is always room for improvement and by continuously learning about its business, Microcom will not only avoid potential letdowns but it would be able to achieve beyond what it has set out for.
b) Financial Measures – revenue growth, cost reduction, quality costs reduction
Customer Measures – number of complaints, returns, exchanges
Business Process – number of rework, scrapped units, supplier ...