Case Study #2 - Using the Balanced Scorecard to Assess and Enhance Magna PC's PerformanceIntroduction:This case study will provide students an opportunity draw upon their accounting and business...

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Answered 63 days AfterFeb 03, 2024

Answer To: Case Study #2 - Using the Balanced Scorecard to Assess and Enhance Magna PC's...

Sandeep answered on Apr 06 2024
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Instructions
    Case Study Project Assignment: Using the Balanced Scorecard to Assess and Enhance Magna PC's Performance
    Instructions:
        Read the case study thoroughly. Research and review textbook and other m
aterials related to the balance scorecard, including its structure, underlying logic, and use. Imagine that you are Magna PC's corporate controller. Address the following questions fully, yet succinctly.
    1    Based on the case study information, answer the following questions related to Magna's customer strategy. Based on the case study information, answer the following questions related to Magna's customer strategy on a Word document. Be sure to number the items and use Times New Roman 12 pt font.
        a.    Describe Magna's strategy in terms of how it competes for customers.
        b.    How does Magna plan to efficiently and reliably deliver value to its customers?
        c.    Is innnovation important in the PC industry, please explain.
    2    Based on Magna's strategy and the data included in the case, prepare a balanced scorecard for Magna in the format shown in Exhibit 1 below. Allocate all of the appropriate measures to the proper balance scorecard areas. Add DataMax's actual numbers to the balanced scorecard where available. Use the data provided to calculate and list in the appropriate section(s) the following ratios for Magna and DataMax. Note, be sure to list all applicable items, not just the calculated ratios.
        a.    Net profit margin after tax
        b.    Return on invested capital
        c.    Average sales price per PC
        d.    Cost of Goods Sold (COGS) per PC produced
        e.    Number of PCs produced per employee
    3    Write a professional letter addressed to the CFO using the balance scorecard you prepared to respond to the following items.
        a.     Deduce why Manga may not have been able to successfully implement its strategy.
        b.    Describe the information you would need to collect as the corporate controller to confirm your deductions.
        c.    Provide well-reasoned suggestions as to how Magna might improve its performance. Support your recommendations with the data and calculations. Also draw from...
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