Running head: DELTA/SIGNAL CASE

Delta/Signal Company Report

Student’s Name

Institution

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 DELTA/SIGNAL CASE 2

Introduction

After reading the case study (Delta/Signal Case), there are main objectives identified for

Delta/Signal company to reach its goals successfully. The resources were directed on sales

increase in the luxury market through the improvement of customers’ involvement into the sale

process to create good quality and products that last for longer periods. The case study reveals

that most of Delta/Sigma competitors were going into Asia since they discovered some

investment opportunity. This movement could leave OEMs in the USA and Europe up for grabs,

and Delta/Signal would have to capitalize on the “lack of competitive interest in the luxury

sector” (Narayanan et al., 2013).

The best strategy that was chosen for Delta/Signal Corp was Cost Leadership. This

strategy was preferred because it would assist Delta/Signal Corp. to develop a competitive

advantage in the market hence increasing sales, overall turnover and support all developmental

plans. This strategy recognized after an analysis of delta/signal’s financial statement and other

three competitors (Vulferam AG, Odawa System Corporation, and Shagimaw Corporation). The

metrics presented the major requirement for enhancement; hence.

Different objectives were supposed to be chosen from the four categories (financial,

customers, Internal process, and learning and growth), then included in the balanced scorecard.

Some of these objectives included (OL-11-improve understanding of product costs). This

objective could help the product’s value to be accounted for in financial statements hence

reporting requirements which are supposed to be met. Another objective was (OP-15-reduce

administrative cost) was chosen because the workers understand their product well thus, no extra

money would be required on administrative cost. After selection of the best objectives, strategy

map was created where by the objectives were linked from bottom to top. Only 15 objectives

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 DELTA/SIGNAL CASE 3

were included in the map because they had a good relationship and they could link up with each

other. The figure below shows Strategy Map with the fifteen selected objectives that are used to

create the scorecard to implement Delta Signal’s strategy.

Finances
OF-1 Increased OF-6 Improve Operating
OF-9 Increase Sales
Asset Turnover Income Margin %
MF-9 Sales

Customer
OC-3 Competitive OC-5 Improve
OC-10 Reputation As
Price for Customers Customer Satisfaction
Leading Low-Cost Supplier

Internal Process OP-3 Develop Products OP-15 Reduce

OP-6 Improve OP-11 Leverage
OP-1 Align Co. Spending with Low Costs Administrative
Assembly Line Supplier
with BSC Objectives Costs
Efficiency Technology

OP-16 Reduce Investment

in Working Capital OP-17 Reduce Plant
Overhead Costs

Learning & Growth

OL-9 Improve Low-Cost OL-11 Improve Understanding

l Skills
Sourcing Employee of Product Costs

Figure 1: Strategy Map

Even though there were about twenty options of objectives to select from, only fifteen were

chosen because it is hard to realize success in many areas while using too many objectives.

The budgeting of $25 million was worked through, focusing much on the initiative that

would eventually attain the outlined goals. Since it was hard to realize accurately what each

initiative would accomplish, the process of trial and error was employed from time to time. The

effort was put into realizing the type of initiatives that were driving the value from time to time,

thus adjusting the initiatives’ budget at the start of every round to achieve the outlined objectives

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 DELTA/SIGNAL CASE 4

efficiently. The decisions began to derive success with the great improvement taking place

between the 4th and 5th period. The metric category of Customer Rank Company Guarantee Best

in Class” was set out and “Innovative trade Marketing Program” was left out since it did not

have strategy simulation. This led to an increase in sale, gross margin and “Best in Class”

The metrics which displayed less improvement in every period included “product with

leading performance” and clients who would recommend the firm. Moreover, the investment in

the Low-Price Trade Marketing Program” was avoided because it could make the luxury vehicle

accessible at more marketplaces. In relative to “Customer in Feedback Data Capture Project,”

financial initiative was invested, which previously prevailed a rise in number; but after that, it

stagnated for six periods. When this movement was realized, the initiative was no longer funded

because it did not have sustained substantial effect. Furthermore, a drop of sale was recognized

from period 7 to 8 because no decisions were made to make changes in these periods. There was

an increase in financial support to “Technology Product Trends Identified” and "Customers in

Company Sponsored Training" initiatives to attain scorecard objectives.

Benefits and Problems of Using Balanced Scorecard and Strategy Maps to Implement

Strategy

A balanced scorecard and strategy map approach gives a clear preparation to what

Delta/Signal company should measure to balance perspectives of finances. One of the

advantages of using a balanced scorecard and a strategy map to implement strategy is that these

approaches give the management of the company a full image of business operations thus,

improved processes, decisions, timeframe, and better solutions. Moreover, a balanced scorecard

assists to bring in line measures of performance with the strategy of an organization. However,

the two approaches have some problems. For example, strategy map and balanced scorecard fail

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 DELTA/SIGNAL CASE 5

to address uncertainty and risks in an organization. They also do not outline actual perspective of

customers. Furthermore, it can be overwhelming to use the balanced scorecard to implement a

strategy in a company.

Conclusion

After the analysis of Delta/signal Case study, it can be concluded that development would

only occur after changes are made to several initiatives that were not bringing any value to the

company. Practically, a company cannot be satisfied with its initiative if it does not yield any

profit. Therefore, metrics have to be applied to identify if the resources and finances are utilized

properly. This will determine if an increase in financial metrics would be achieved or not.

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 DELTA/SIGNAL CASE 6

References

Narayanan V.G., Brem L., & Packard M. (2013). Delta/signal corp. Harvard Business School. 1-

15.

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