Description
You are playing the role of the divisional manager of the new e-bike division of Fox Factory Holding Corporation. The divisional manager is preparing to request funding to introduce the product and begin sales. Three options have been identified (note that these are fictitious assumptions for the course):
Produce the new e-bike internally,
Outsource manufacturing to another manufacturer, and
License the design to an existing company for royalties on future sales.
Note: Please use the most recent Quarterly ResultsLinks to an external site. (Form 10-Q) published under Financial Information section on the Fox Factory Investor Overview website. Please use the earnings announcement for relevant required information, such as “Fox Factory Holding Corp. Announces Third Quarter 20XX Financial Results.”
You will now submit your case study and recommendation to the CEO for Fox Factory’s plan to produce e-bikes for the domestic market.
In your project,
Complete a one-page Executive Summary introduction with your recommendation among the three options.
The Executive Summary should be present at the beginning, followed by other explanations and reviews.
Elaborate on the situational assessment of Fox Factory, including key financial information.
Review each of the three options, including the costs, benefits, and risks of each item (spending, headcount, and capital).
Explain why your recommendation makes the most financial sense for the company.
Revise the Balanced Scorecard Excel sheet, OMM622_Balanced Scorecard_Template.xlsx, created in Week 5 with any feedback from your faculty( I will forward the feedback once I receiver it).
Revise the sheet only for the recommended option. Include five goals and associated KPIs using the recommended template.
The Case Study Recommendation final project,
must be 6–8 double-spaced pages in length, including the Executive Summary page, but not including title and references pages.
must be formatted according to APA Style as outlined in the Writing Center’s APA Formatting for Microsoft Word resource.
must include the Excel sheet, OMM622_Balanced Scorecard_Template.xlsx, that you worked on Week 5. Rename it to OMM622_Balanced Scorecard_Final Project_Your Name.xlsx after doing the revisions for your recommended option ( I will forward the feedback once I receiver it).
must include a separate title page with the title of the paper in bold font, names of the student, institution, and instructor, along with the course name, course number, and due date.
must utilize Academic Voice
must include an introduction and conclusion paragraph.
Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
must include a separate references page formatted according to APA Style as outlined in the Writing Center.
Carefully review the Grading Rubric important points below:
Completes an Executive Summary Introduction With Recommendation Among the Three Options
Elaborates on the Situational Assessment of Fox Factory, Including Key Financial Information
Reviews Each of the Three Options, Including Costs, Benefits, and Risks of Each Item (Spending, Headcount, and Capital)
Explains Why the Recommendation Makes the Most Financial Sense for the Company
Revises the Balanced Scorecard Excel Sheet Created in Week 5 With Feedback From the Faculty ( I will send the feedback when I receive it)
I attached the week 5 assignment without the feedback.
Unformatted Attachment Preview
BALANCED SCORECARD
STRATEGIC OBJECTIVE
KEY PERFORMANCE
INDICATORS
Increase the company’s
profitability
Net profit margin
Increase the compnay’s revenue
changes in the company’s net
revenue
INTERNAL
PROCESSES
Have the best process efficiency
%Processes optimized
Customer/ Market
Produce Internally
have the highest customer
ratings
LEARNING AND GROWTH
FINANCIAL
Category
Increase employee expertise
Increase word of mouth
marketing among the company’s
customer base
KPI TARGET VALUES
KPI ACTION PLAN DETAILS
OF PROGRAMS/INITIATIVES
BUDGETS
YEAR 1
YEAR 2
YEAREXAMPLES
3
Produce the new e-bike internally
10% increase 10% increase 10% increase while adhering to the quality control
measures to have the most
The budget for producing the
competitive products in the e-bike new e-bikes internally is $160
market.
million.
15% increase 15% increase 15% increase
100% process 100% process 100% process
optimization optimization optimization
%Order Errors
reduce errors
by 20%
average customer ratings
Increase in
average
customer
ratings by
10%
#New customers
reduce errors reduce errors
by 20%
by 20%
Increase in
average
customer
ratings by
10%
Increase in
average
customer
ratings by
10%
Increase in the Increase in
Increase in
average
the average the average
customer base customer
customer
by 10%
base by 10% base by 10%
The net profit margin and changes
in the company’s revenue offer an
indication of the company’s
financial growth.
Train employees to effectively
produce the new e-bikes internally.
10% of the proposed budget
will go towards training
employees.
Process optimization and error
reduction are essential in
guaranteeing excellent service
delivery to the company’s customers
Introduction of quality measures to
improved product quality to create
value for customers’ money
15% of the porposed budget
will be used to improve and
maintain product quality
Customer rating and an increase in
the company’s customer base are
indicators of improved product
quality
10% of the proposed budget
will go towards training
employees.
A high number of Customer
complaints indicates that the
company’s sales forces is
underperforming. Secondly,
employee turnover rates indicates
employees’ satisfaction rates. Lastly,
the number of errors in the
production process indicates
employees’ level of expertise.
5% decrease 5% decrease 5% decrease
in employee in employee in employee
turnover rates turnover rates turnover rates
Have skilled and bestperforming employees
KPI SELECTION RATIONALE
SELECTION RATIONALE
% employee turnover rates,
reduction in number of customer reduce errors reduce errors reduce errors
Train employees to effectively
by 20%
by 20%
complaints and a reduction in % by 20%
produce the new e-bikes internally.
errors
reduce
reduce
reduce
customer
customer
customer
complaints by complaints by complaints by
10%
10%
10%
Good quality e-bikes will ensure
customers get value for their money,
and thus resulting in an incerease in the
company’s customer base.
CUSTOMER/MARKET
Training employees will equip them
with the expertise they need to
effectively produce the new e-bikes
Better trained employees will
effectively handle everyday tasks
resulting in improved satisaction rates
and low employee turnover rates, low
number of customer complaints and a
reduction in errors in the production
process.
LEARNING AND GROWTH
Producing the e-bike internally will
result in a full control over the
production process and an opportunity
to cut expenses resulting higher sales
and an opportunity to increase the
company’s profit margin.
FINANCIAL
Category
INTERNAL
PROCESSES
KPI SELECTION RATIONALE
CAUSE-EFFECT RELATIONSHIP
3
BALANCED SCORECARD
Outsource
INTERNAL PROCESSES
FINANCIAL
Category
STRATEGIC OBJECTIVE
Increase the company’s profitability
Increase the company’s revenue
Have the best service delivery in the
market
KEY PERFORMANCE
INDICATORS
The Net profit margin
changes in the company’s net revenue
CUSTOMER/MARKET
LEARNING AND GROWTH
Increase word of mouth marketing
among the company’s customer base
Have the best sales employees in the
industry
YEAR 1
YEAR 2
10% increase 10% increase 10% increase
15% increase 15% increase 15% increase
100%
sheduling
adherance
100%
sheduling
adherance
100%
sheduling
adherance
% customer complaints
reduce
customer
complaint
s by 10%
reduce
customer
complaints
by 10%
reduce
customer
complaints
by 10%
reduce
errors by
20%
Increase in
average
customer
ratings by
10%
reduce
errors by
20%
Increase in
average
customer
ratings by
10%
reduce
errors by
20%
Increase in
average
customer
ratings by
10%
average customer ratings
KPI ACTION PLAN DETAILS
YEAR 3EXAMPLES OF PROGRAMS/INITIATIVES
%Scheduling adherence
%Order Errors
have the highest customer ratings
KPI TARGET VALUES
#New customers
Increase in
Increase in
Increase in
the average the average the average
customer
customer
customer
base by 10% base by 10% base by 10%
% sales employee turnover rates
5% decrease
5% decrease 5% decrease
in sales
in sales
in sales
employees
employees
employees
turnover
turnover rates turnover rates
rates
BUDGETS
Outsourcing the production of e-bikes
to reduce production risks and avoid
the high initial production costs, thus
enabling the company to generate
higher profit margins.
The budget for outsourcing the
production of e-bikes is $130
million
Train employees to effectively
provide the best services to the
company’s customers
10% of the proposed budget will
go towards training employees.
Train the sales force to ensure they
have the skills needed to effectively
handle customer’s needs
10% of the proposed budget will
go towards training employees.
Train the sales force to ensure they
have the skills needed to effectively
handle customer’s needs
10% of the proposed budget will
go towards training employees.
LEARNING AND GROWTH
Have the best sales employees in the
industry
% reduction in number of customer
complaints
reduce
reduce
reduce
customer
customer
customer
complaints complaints by complaints by
by 10%
10%
10%
Train the sales force to ensure they
have the skills needed to effectively
handle customer’s needs
10% of the proposed budget will
go towards training employees.
An increase in the company’s profit
margin and net revenue will
highlight the effectiveness of the
decision to outsource the production
of e-bikes
Outsourcing will enable the
company to avoid risks associated
with producing the bikes internally
and to avoid the initial costs of
producing the e-bikes, thus enabling
it to generate higher profit margins.
% scheduling adherance, # customer
complaints and % errors are
indicators of the effectiveness with
which the company is executing its
customer service plan
Training improves their skillset, thus
resulting in a reduction in errors and
improved customer satisfaction
levels.
Customer rating and an increase in
the company’s customer base are
indicators of excellent service
delivery
Excellent customer service will
ensure customers get value for their
money, and thus resulting in an
incerease in the company’s customer
base.
A high number of Customer
complaints indicates that the
company’s sales forces is
underperforming, and employee
turnover rates indicates employees’
satisfaction rates.
Better trained employees will
effectively handle everyday tasks
resulting in improved satisaction
rates and low employee turnover
rates and a reduction in errors in the
production process.
INTERNAL PROCESSES
FINANCIAL
CAUSE-EFFECT RELATIONSHIP
CUSTOMER/MARKET
Category
SELECTION RATIONALE
LEARNING AND GROWTH
KPI SELECTION RATIONALE
Better trained employees will
effectively handle everyday tasks
resulting in improved satisaction
rates and low employee turnover
rates and a reduction in errors in the
production process.
LEARNING AND GROWTH
A high number of Customer
complaints indicates that the
company’s sales forces is
underperforming, and employee
turnover rates indicates employees’
satisfaction rates.
3
BALANCED SCORECARD
License the Design
STRATEGIC OBJECTIVE
YEAR 2
KPI ACTION PLAN DETAILS
YEAR 3EXAMPLES OF PROGRAMS/INITIATIVES
10% increase 10% increase 10% increase
Increase the company’s sales revenue
The company’s sales revenue
15% increase 15% increase 15% increase
INTERNAL
PROCESSES
%Net profit margin
KPI TARGET VALUES
YEAR 1
Have the best brand in the e-bike
market
The company’s sales revenue
15% increase 15% increase 15% increase
CUSTOMER/M
ARKET
Increase the company’s profitability
KEY PERFORMANCE
INDICATORS
Ensure high customer satisfaction
levels
% customer ratings
95%
customer
ratings
95%
customer
ratings
LEARNING AND
GROWTH
FINANCIAL
Category
Have the best design team
% design errors
0% design
errors
0% design
errors
Licensing the design of e-bikes to an
existing company for royalties on
future sales.
BUDGETS
$ 5 million used to market the
company
conduct customer surveys to ascertain
their needs and ensure their needs are
prioritized
$1 million for customer surveys
95%
customer
ratings
conducting customer surveys indent to
ascertain their perception of the ebikes produced by the companies with
licenses
$1 million used to conduct the
surveys
0% design
errors
Train employees to ensure they have
the best skills needed to effectively
design the e-bikes
$1 million used to train
employees
By licensing the production of the
bike the company will generate
revenue without incuring signifcant
initial and subsequent production
costs.
Improved brand loyalty enables a
company to increase its revenue
Improved brand loyalty enables a
company to increase its revenue
customers’ ratings will inform
whether the companies licensed to
produce the e-bike are meeting the
quality standards
Better feadback from customers
result in improved brand loyalty
% design errors will indicate the
effectiveness of the company’s
design team
well trained employees will result in
low number of errors.
INTERNAL
PROCESSES
FINANCIAL
An increase in the company’s profit
margin and net revenue will
highlight the effectiveness of the
decision to license the design of ebikes to an existing company for
royalties on future sales.
CUSTOMER/M
ARKET
Category
CAUSE-EFFECT RELATIONSHIP
LEARNING AND
GROWTH
KPI SELECTION RATIONALE
SELECTION RATIONALE
3
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