Strategy, balanced scorecard, merchandising operation. Ramiro & Sons buys T-shir...

Strategy, balanced scorecard, merchandising operation. Ramiro & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Ramiro wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Ramiro T-shirt. Ramiro presents the following data for its first two years of operations, 2012 and 2013.

Administrative costs depend on the number of customers Ramiro has created capacity to support, not on

the actual number of customers served. Ramiro had 4,300 customers in 2012 and 4,200 customers in 2013.

1. Is Ramiro’s strategy one of product differentiation or cost leadership? Explain briefly.

2. Describe briefly the key measures Ramiro should include in its balanced scorecard and the reasons for doing so.