Accounting Information
Question a:
According to the case, we can see that Norwalk Pharmaceutical Division of Chadwick was respected for the high quality of its products. And also, it focuses on customers’ feedback and what kind of new products desired by their customers. So, the overall strategy of Norwalk is differentiation. According to the business strategy that John Greenfield sketched out, invest in discovery of new compounds and unique mix of technical and commercial skills should not be included. Because the development cycles cost too much and indentify new applications for exiting compounds is much, much less expensive and efficient in earning profit. And develop unique mix of technical and commercial skills do not mean customers’ satisfaction, but means difficult and expensive in developing. Balanced scorecard measures Financial measures | Increased market share and ROECash flowQuarterly sales growth and operating incomeWorking capital | Customer measures | Percent of sales from new productsPercent of sales from proprietary productsCustomer complaint rateOn-time delivery | Internal business measures | Engineering efficiencyActual introduction schedule vs. planCycle time, cost index for technical compoundsInventory turns by product class | Innovation measures | Time to develop next generationProcess time to maturityRevenue from new products introduced in last 3 yearFocus on products that equal 70% sales |
Question b:
There would be different between Chadwick and its divisions of Balanced Scorecard. First of all, such as the Norwalk Pharmaceutical division, it developed, manufactured and sold ethical drugs for human and animal use while Chadwick Inc. is a diversified producer of personal consumer products and pharmaceuticals. As they focus on different products, their targets and strategies would be different as well. Secondly, according to the case, the reason for Chadwick’s long-term success highly depends on how
According to the case, we can see that Norwalk Pharmaceutical Division of Chadwick was respected for the high quality of its products. And also, it focuses on customers’ feedback and what kind of new products desired by their customers. So, the overall strategy of Norwalk is differentiation. According to the business strategy that John Greenfield sketched out, invest in discovery of new compounds and unique mix of technical and commercial skills should not be included. Because the development cycles cost too much and indentify new applications for exiting compounds is much, much less expensive and efficient in earning profit. And develop unique mix of technical and commercial skills do not mean customers’ satisfaction, but means difficult and expensive in developing. Balanced scorecard measures Financial measures | Increased market share and ROECash flowQuarterly sales growth and operating incomeWorking capital | Customer measures | Percent of sales from new productsPercent of sales from proprietary productsCustomer complaint rateOn-time delivery | Internal business measures | Engineering efficiencyActual introduction schedule vs. planCycle time, cost index for technical compoundsInventory turns by product class | Innovation measures | Time to develop next generationProcess time to maturityRevenue from new products introduced in last 3 yearFocus on products that equal 70% sales |
Question b:
There would be different between Chadwick and its divisions of Balanced Scorecard. First of all, such as the Norwalk Pharmaceutical division, it developed, manufactured and sold ethical drugs for human and animal use while Chadwick Inc. is a diversified producer of personal consumer products and pharmaceuticals. As they focus on different products, their targets and strategies would be different as well. Secondly, according to the case, the reason for Chadwick’s long-term success highly depends on how