E-Appliances manufactures an MP3 player called the Mini. The company sells the player to discount stores throughout the country. This player is significantly less expensive than similar products sold by E-Appliances’ main competitor, but the Mini offers less storage space. E-Appliances has recently experienced production problems that have resulted in significant rework costs. The competitor model has an excellent reputation for quality, but is considerably more expensive. E-Appliances would like to improve quality and decrease costs by improving processes and training workers to reduce rework. The managers believe increased quality will increase sales.

Draw a strategy map and explain the cause-and-effect relationships among the strategic objectives you would expect to see in E-Appliances balanced scorecard.

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