Analysis of growth, price recovery, and productivity components Strategy, balanced scorecard, merchandising operation. Roberto & Sons buys T shirts in bulk, applies its own trendsetting silk screen designs, and then sells the T shirts to a number of retailers. Roberto wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Roberto T shirt. Roberto presents the following data for its first two years of operations, 2010 and 2011.
1. Is Roberto ‘s strategy one of product differentiation or cost leadership? Explain briefly.
2. Describe briefly the key measures Roberto should include in its balanced scorecard and the reasons it should do so. Suppose that the market for silk screened T shirts grew by 10% during 2011. All increases in sales greater than 10% are the result of Roberto’s strategic actions.Calculate the change in operating income from 2010 to 2011 due to growth in market size, product differentiation, and cost leadership. How successful has Roberto been in implementing its strategy? Explain.