La Quintas Balanced Scorecard for 2009

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La Quintas Balanced Scorecard for 2009 CHAPTER 13 STRATEGY, BALANCED SCORECARD, AND STRATEGIC PROFITABILITY ANALYSIS Solution Exhibit 13-16A Customer Preference Map for Corrugated Boxes [pic] 3. Measures that we would expect to see on a La Quinta’s balanced scorecard for 2009 are Financial Perspective (1) Operating income from productivity gain, (2) operating income from growth, (3) cost reductions in key areas. These measures evaluate whether La Quinta has successfully reduced costs and generated growth through cost leadership. Customer Perspective (1) Market share in corrugated boxes market, (2) new customers, (3) customer satisfaction index. The logic is that improvements in these customer measures are leading indicators of whether La Quinta’s cost leadership strategy is succeeding with its customers and helping it to achieve superior financial performance. Internal Business Process Perspective (1) Productivity, (2) order delivery time, (3) on-time delivery, (4) number of major process improvements. Improvements in these measures are key drivers of achieving cost leadership and are expected to lead to more satisfied customers and in turn to superior financial performance Learning and Growth Perspective (1) Percentage of employees trained in process and quality management, (2) employee satisfaction. Improvements in these measures aim to improve La Quinta’s ability to achieve cost leadership and have a cause-and-effect relationship with improvements in internal business processes, which in turn lead to customer satisfaction and financial performance. Solution Exhibit 13-16B presents the strategy for La Quinta for 2009. Solution Exhibit 13-16B Strategy Map for La Quinta for 2009 [pic] 13-17 (20 min.) Analysis of growth, price-recovery, and productivity components (continuation of 13-16). 1. La Quinta’s operating

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