Strategic Models Essay Example | Topics and Well Written Essays - 2500 words

Strategic Models - Essay Example The balanced scorecard includes qualitative insights in addition to quantitative measures like financial statements to give the decision makers a bird's eye view of the past health and also the future course of action of the company. While financial measures like Return on Investment, sales and profit values, continue to be critical, new units like quality measures (warrantee/replacement/return/refund costs), employee skill and satisfaction measures (attrition/training/redeployment cost), future growth measures (R&D costs) are also taken into account. Wells Fargo and company is a diversified financial services company based at San Francisco, California and offers a range of financial products. The company has been termed as one of the safest banks in the world. (The World's Safest Banks 2007, October 2007) Wells Fargo bank used Balanced Score Card to identify its future growth path. Within 3 years of implementing the insights it got from a BSC, it was voted as the best online bank. As a result of the BSC, it increased its customer base by 4.5 times, and also decreased its cost per customer by as much as 22%. Additionally, it was able to add over 750,000 online customers over a 2 year period. (Beiman I. and Johnson J.C., n.d.) The conventional manufacturing strategy model states that there i... (San Francisco, February2001) Wells Fargo bank used Balanced Score Card to identify its future growth path. Within 3 years of implementing the insights it got from a BSC, it was voted as the best online bank. As a result of the BSC, it increased its customer base by 4.5 times, and also decreased its cost per customer by as much as 22%. Additionally, it was able to add over 750,000 online customers over a 2 year period. (Beiman I. and Johnson J.C., n.d.) Strategic Models - 2 Sand Cone Model: (Ferdows & De Meyer) Introduction The conventional manufacturing strategy model states that there is a trade-off among the four basic manufacturing capabilities- Quality, Dependability, Speed and Cost, unless there is slack in any one of the capabilities. However, the Sand Cone model proposed by Ferdows and De Meyer suggests that there is a hierarchical relationship amongst the four given capabilities. While from a short term perspective, advance in one of the capabilities may require the decision maker to trade off any one or more of the capabilities, it is indeed possible to achieve excellence in all the four capabilities in an hierarchical, staged manner. In order to create a long term manufacturing capability, the decision makers should aim to enhance quality of the manufactured items. Once this drive has achieved a set of milestones, the dependability of the manufacturing system has to be taken care of. Once these two capabilities have been assimilated, the next capability requiring attention would be flexibility, or reaction speed. Finally, once these three capabilities have been fixed, the decision makers should strive to achieve cost reduction. If this flow is maintained, it is possible for a