Question

Balanced Scorecard

Heatherstone Corporation manufactures stone tiles for kitchen counters and floors. Its strategy is to manufacture high-quality products at reasonable prices, and to rapidly deliver products following sales. Heatherstone sells to both hardware stores and contractors. To avoid holding large inventories of finished goods, Heatherstone manufactures products based on orders from customers. The factory setup enables workers to perform multiple functions, including receiving orders, running different machines, inspecting for quality, packaging, and shipping final product.

Required

Given Heatherstone’s strategy, describe the financial and nonfinancial measures that you would include in its balanced scorecard-based management control system, justify why you picked the measures you did. (ensure you address all four BSC perspectives: See exhibit 19.5) (8 marks)

Answer 1