Strategy and Balance Scorecard Analysis of Delictrends Ltd

This essay provides an analysis of Delictrends Ltd's strategy and performance using the balanced scorecard framework. It examines the company's focused differentiation strategy in the context of purchasing and selling T-shirts, particularly targeting the teenage market. The analysis considers factors affecting the company's financial performance, such as the decrease in customer base, changes in pricing, and increased administrative costs. The balanced scorecard is used to explain the company's strategy from four key perspectives: financial, customer, internal business process, and learning and growth. The essay highlights the causes behind changes in cost, price, customer numbers, and the unique aspects of their T-shirt production process, as well as the quality aspects of their products.

Running head: STRATEGY, BALANCE SCORECARD
Strategy, Balance Scorecard
Name of the Student:
Name of the University:
Author’s Note:

1STRATEGY, BALANCE SCORECARD
Table of Contents
Answer to question 1:.................................................................................................................3
Answer to question 2:.................................................................................................................4
References:.................................................................................................................................5

2STRATEGY, BALANCE SCORECARD
Answer to question 1:
Cost and management accounting helps the management of a business to take certain
strategic decision (Shen, Chen and Wang 2016). To perform with financial and operational
Excellencies, a company needs to formulate certain strategies which help them to beat the
challenges and competitions in the market. In the given case study, Delictrends Ltd is
purchasing and selling T-Shirts with their management’s vision to capture a huge market
focusing on teenagers. From the information available it can be noticed that their customer
base has been decreased in the year 2019. Many other factors affecting their financial
performance can be analyzed as below.
From the above analysis it can be concluded that they are having focused
differentiation strategy. They are applying their own trending designs on the T-Shirt and they
are focusing only the teenager customer group. They have improved their quality and reduced
their price to serve more quality products to their customers. Though the number of

3STRATEGY, BALANCE SCORECARD
customers has been decreased marginally, total number of T-Shirt sales has been increased
significantly. All those factors helped them to make more profit in 2019.
Answer to question 2:
Balanced scorecard helps in explaining the strategy of a company from four key
perspectives (Zizlavsky 2014). As Delictrends Ltd is having a Focused Product
differentiation strategy, the Balanced Scorecard of Delictrends Ltd should explain the
strategies taken by them and their operational and financial performance. Their financial
perspective should include the causes behind significant decrease in cost of T-Shirts,
marginal increase in price and the reasn behind increase in administrative costs. Their
customer perspective should describe the reason behind fall in number of customers. Internal
business process perspective should describe the process of making their T-Shirts unique.
The learning and growth perspective of Delictrends should include the quality aspect of their
T-Shirts.

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References:
Shen, Y.C., Chen, P.S. and Wang, C.H., 2016. A study of enterprise resource planning (ERP)
system performance measurement using the quantitative balanced scorecard approach.
Computers in Industry, 75, pp.127-139.
Zizlavsky, O., 2014. The balanced scorecard: Innovative performance measurement and
management control system. Journal of technology management & innovation, 9(3), pp.210-
222.