[Instant Solution] Significantly Less Expensive

[Instant Solution] Significantly Less Expensive


The CK&M Company manufactures a robotic vacuum called the Robo2000. The company sells the vacuum to discount stores throughout the country. The Robo2000 is a basic robotic vacuum with a remote and is significantly less expensive than the robotic vacuum that requires a smartphone and app offered by the competitor, Stone Manufacturing. Furthermore, CK&M has experienced production problems that have resulted in significant rework costs. Stone’s model has an excellent reputation for quality.

  • Is CK&M’s current strategy that of product differentiation or cost leadership?
  • What about the strategy of Stone Manufacturing?

CK&M would like to improve quality and decrease costs by improving processes and training workers to reduce rework. CK&M’s managers believe that increased quality will increase sales.

  • Develop an appropriate strategy to achieve this goal.
  • For each of the 4 perspectives, propose criteria that you would include in a balanced scorecard for CK&M.

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