Session 7, Transworld Auto Parts Case Study

The Chief Executive Officer, the highest-ranking person in a company responsible for making major decisions and leading the organization.

Balanced Scorecards are performance management tools that look at a company's performance from various perspectives. This helps make strategic decisions and monitor progress.

A subsidiary is a company controlled by another. They are separate entities with their own management, but the parent company has majority ownership and control.

Tier 1 manufacturers are original equipment manufacturers (OEMs) that make parts for other companies. They are the top-level suppliers in a supply chain.

Original Equipment Manufacturer (OEM) parts are made by the original company that manufactured a product.

Aftermarket parts are produced and sold by companies other than the product's original manufacturer.

Strategic decisions are choices made by a company that impact its long-term direction and success. They consider factors like growth, competition, and resources.

Non-financial goals are objectives that go beyond financial performance, such as improving customer satisfaction or employee engagement.

A situation in which a company must lower its prices to remain competitive, especially when facing unpredictable raw material costs and customer demands.

The process of combining multiple products or services into a smaller, more streamlined range.

The practice of managing suppliers effectively to ensure timely deliveries and cost optimization.

The ability to produce goods efficiently, using available resources effectively.

The cost of goods sold, including raw materials, labor, and manufacturing overheads.

Improvements in processes and equipment designed to enhance efficiency and quality.

The uncertainty in the market, making it difficult to predict customer demand and production schedules.

The process of designing products that are affordable while maintaining quality and functionality.

The features most valued by customers when choosing a car, ranked from most important to least important.

The features most valued by car manufacturers (OEMs) when developing their products, ranked from most important to least important.

For end-users, comfort, low cost, and quality are the top three desired attributes in a car, with different rankings based on the customer category - luxury, economy, or mid-size.

For OEMs, the most important attributes are price, customer service, and on-time delivery, with variations based on the specific product segment.

The value proposition defines what a customer or OEM values most in a product. This can vary by target customer segment, impacting product development and marketing.

Represents the cost associated with producing goods sold, excluding the cost of materials and labor. It covers indirect expenses like rent, utilities, and depreciation.

Expenses related to selling and managing a business. This includes marketing, sales, and administrative costs.

This is the profit earned after deducting the cost of goods sold (COGS) and selling, general, and administrative (SGA) expenses from revenue.

This column represents the total revenue from all the product categories. It shows the company's overall financial performance.

This column represents the total cost of goods sold (COGS) across different product categories. It reflects the overall cost of producing goods.

A type of competitive analysis that considers the cost of ownership of a product over its lifetime. This includes initial purchase price, maintenance, repairs, and other factors.

A type of competitive analysis that focuses on the initial purchase cost of a product.

A competitor analysis approach that uses a two-dimensional matrix to visually represent different competitors and their strengths in terms of initial cost and lifetime cost. This helps understand where each competitor stands in the market.

A type of competitor analysis that groups competitors into different segments based on their target customer groups. This helps understand the broader market landscape and competitor dynamics.

A segment of the market that prioritizes low upfront cost when making a purchase decision. They may be budget-conscious and value-oriented.

A segment of the market that prioritizes luxury and premium features over cost. They are willing to pay a premium for high-quality and exclusive products.

A customer profile or representative that is used within a competitive analysis to understand different target groups and their priorities. This helps tailor strategies and marketing efforts to specific customer segments.

A process of gathering and analyzing information about competitors to understand their strengths, weaknesses, strategies, and market position. This provides insights for developing competitive advantages and winning in the market.

A visual representation of the cause-and-effect relationships between strategic objectives, illustrating how success in one area leads to success in another.

A key element of a Balanced Scorecard, it's a broad area of focus for an organization's strategy, like customer service excellence or innovation.

A specific statement describing what an organization must achieve to succeed in its strategic theme.

A measurable way to track an objective's progress. It quantifies how well you're doing.

The desired level of performance or rate for each measure.

Any key action plan or program required to achieve the objective.

A strategic theme in a Balanced Scorecard focused on delivering exceptional customer experiences.