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Mountain High Bikes (MHB) wants to implement a balanced scorecard. Its mission statement reads, "We build high-quality, reliable bikes at competitive prices." The company's competitive strategy is to continuously improve the functionality, reliability, and quality of its bikes, while holding prices at levels similar to competitors. The company operates three subunits organized around the product lines for the three types of mountain bikes it currently produces. A fourth bike line in development includes a finished design, with engineers currently working on the plans for the manufacturing process. MHB sells directly to bike shops and operates an Internet site that allows bike shops to place orders for customized products.
A. Describe the implementation cycle for the balanced scorecard at MHB.
B. Describe the four perspectives of the balanced scorecard and list one or more strategic objectives for each perspective that are likely to be important for MHB.
C. Pick one strategic objective for each perspective in part (B) and identify two or more potential measures. Explain how each measure would link to improved financial performance.
D. Describe the pros and cons of implementing a balanced scorecard for MHB.
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