The candidate invested in celebrity endorsements from years 13-16 to develop a resource strength for their shoe company. This proved an effective marketing strategy, as profits increased each year endorsements were used. However, celebrity endorsements were easily copied by competitors. The candidate's balanced scorecard could have been improved to track both financial and customer satisfaction metrics to better guide strategic decisions. Developing a balanced scorecard incorporating both leading and lagging indicators would provide a more comprehensive performance overview.

1. B) Analyze the actions you took to develop a resource strength
at a key point
A resource strength is a resource that a company possesses that
can help the company exploit and develop sustainable
competitive advantages (Thomas).During the last few years of
the simulation I decided to invest in celebrity endorsements. In
years 13 we started off investing small 60 and year 14 was 265,
year 15 325 and year 16 went down to 130. As you can see from
the chart below that as we started to use celebrity endorsements
our profits increased, especially between years 14 and 15. As
you can see the use of celebrity endorsements was a very
effective way to market and sale more shoes.
year 12
year 13
year 14
year 15
year 16
year 17
$ 48,625.00
$ 33,554.00
$ 79,667.00
$ 91,034.00
$ 92,952.00
$ 55,490.00
B1) Analyze how competitively powerful that strength
To determine if the strength was competitively powerful we
need to look at the four tests of a competitive power:
Is the resource valuable? When determining if the resource is
valuable, the resource needs to contribute to the effectiveness of
the company’s strategy. Once we started using celebrity
endorsements the sales started to go up, while at the same time
keeping the prices low. In year 14 cash receipts from sales were
$447,124, year 15 $487,736 and year 16 476, 226. In the years

2. 14 and 15 comfortable shoes invested the most out of anyone on
celebrity endorsements, year 16 we decrease the amount that we
spent so the sales started to decrease.
Is it something that rivals lack? During the simulation, yes this
is something that the rivals lacked because although some
competitors had celebrity endorsements, no other company
invested as much as comfortable shoes until year 17.
Is the resource hard to copy? We did not pass this test because
this is something that the other competitors could do, as long as
the other shoe companies have the finances they could invest
more money in celebrity endorsements.
Can the resource be trumped by different types of resources and
capabilities—are there good substitutes available for the
resource? This resource can’t be trumped by other resources
because investing in celebrities that are affiliated with a
specific market is way to get more customers and more sales.C)
Evaluate your approach to managing an organizational culture
An organizational culture defined as the values and beliefs that
a company exhibits. There are four functions that an
organizational culture needs to fulfill:
In order for Comfortable shoes to create an organizational
identity (establishes who the company is and what is stands for)
we felt that the employees made the company, so with this we
made sure that the employees felt they were a part of the
company. We made sure that we invested in our employees to
make them feel motivated to be a part of the team, not only did
we invest with salaries. Comfortable shoes also implemented an
incentive pay program, for example in year 11 and 12 the
incentive pay was 1.20 per non rejected shoe. We also
continually invested in best practices training; in the North
American market Comfortable shoes invested 1000 per worker
in year 11. We also felt that by making sure our employees
were in an environment where they were motivated, that this

3. would increase the morale of the employees making them work
better and smarter. Comfortable shoes knew that without the
employees that the company could not be successful.
In order for Comfortable shoes to create a collective
commitment (focusing on what is important), we felt in order to
focus on what was important that both leadership and regular
employees had to have knowledge of what was expected.
Comfortable shoes created a creating a mission and vision
statement that was communicated to everyone. Comfortable
shoes mission is: To be top seller of shoes and understand and
satisfy the needs of its customers.
In order for Comfortable shoes to create a sense making device;
(decisions made by the company are consistent with the
culture). Just as in determining the collective commitment we
had to have a mission and vision statement that was followed by
everyone in the organization. Comfortable shoes also needed to
have policies and procedures in place; everyone in the
organization would know the organizational hierarchy and their
particular responsibilities.
In order for Comfortable shoes to create social system stability;
(solving conflicts using a problem-focused approach rather than
blame); we felt that providing an environment where employees
felt comfortable communicating any conflicts that this would
help better solve. The environment we created was positive and
supportive so that we could have a way we could communicate
effectively and solve conflicts without placing blame. We pride
ourselves in our employees and want to make sure that they
have all tools they need to work effectively.C1) Compare your
approach with proven management practices
· Staff the organization with managers and employees capable
of executing the strategy well.
Comfortable shoes employ managers and employees who have
qualifications and experience that is in line with the business of
the company. Comfortable shoes made sure that training
programs were readily available for new employees.

4. · Build the organizational capabilities required for successful
strategy execution
In this case, Comfortable shoes should strive to fulfill the set
objectives based on what it can possibly do. This means that we
will not come up with overambitious ways of realizing the set
objectives. Comfortable shoes felt that collaboration is the key,
whether it is internally or externally.
· Create a strategy supportive organizational structure.
Comfortable shoes will come up with a structure of ensuring
that the laid down objectives are realized using the said
measures and techniques. This organizational structure can
involve both the top management and employees. The structure
should be able to show how far the company has gone in
fulfilling its set ambitions and what is remaining with plans to
execute what has remained (Mintzberg 2003).
· Institute policies and procedures that facilitate strategy
execution.
Such policies and procedures should be left to the department
within Comfortable shoes the issue of strategy execution. The
team should be in a position to know what policies are viable
and which ones would be effectively used to attain desired
results.
· Adopt best practices and business processes that drive
continuous improvement in strategy execution activities.
By investing in best practices training, Comfortable shoes will
enforce through having an innovative and skilful workforce who
will have the knowledge on continuous improvement in strategy
execution activities. In addition, having top managers with a
vast experience concerning strategy execution activities could
create a positive impact in the overall process.
· Install information and operating systems that enable company
personnel to carry out their strategic roles proficiently.
These IT devices will help the employees to interlink and share
resourceful information regarding the execution of set
activities. Comfortable Shoes plans to stay up to date on

5. hardware and software. All personnel will be assigned their own
personal user ID and password for security purposes.
· Tie rewards and incentives directly to the achievement of
strategic and financial targets.
Comfortable Shoes has come up with a way of rewarding the
best performing employees as a way of instilling motivation
towards the realization of the set objectives. This will also keep
the rest of the workers on toes, as they would expect to be
rewarded should their hard work be recognized as outstanding.
Rewarding should be done through promotion, salary increment,
and organization of parties just for appreciation (Carl 2012).
Some of these rewards will include:
· Free shoes
· Bonuses
· Gift cards
· Merit raises
· Instill a corporate culture that promotes good strategy
execution.
Comfortable shoes lay down a working and performing culture
so that the entire organizational fraternity can follow suit. The
corporate culture should be such that all employees understand
the need to perform outstandingly in the company. This will
ensure that the process of strategy execution is implemented
successfully. The culture that Comfortable shoes want is to
make sure the employees know that are a part of a valuable
team.
D) Evaluate your promotion of creativity and innovation during
the simulation
Forces that drive change are a major element that all companies
in the footwear industry must examine. For the footwear
industry, product innovation is a key driving force. Customers’
preferences change and footwear companies must adapt and
offer a variety instead of just beyond plain shoes to compete in
the market. To keep things fresh and interesting to customers,

6. footwear companies must pay attention to the wants in needs of
the customers in their market segment, they must be willing to
add new styles, features, and materials to their offerings to
entice new customers and keep existing customers. Innovation
is the creation of something new that makes money; it finds a
pathway to the consumer.
Comfortable Shoes was able to surpass many of its competitors
in the earlier rounds of the simulation because of its research
into innovative products based on customer demand.
Comfortable Shoes test marketed new shoe designs every year
in different regions and, based on the response from the region,
either expanded the product to other regions or scrapped the
product completely. The fluctuation in models offered over the
eight years of the simulation was due, in part, to regional
response to models. One region’s sales would reflect a positive
reaction to the shoe, but when expanded into the other markets,
the overall reaction was negative – so the shoe was taken out of
the models offered
Comfortable shoes was very innovative in working with
employees, we decided to incorporate a plan that allowed
employees to be a part of the decision making. Brainstorming
sessions, suggestion box and allowing for a better
organizational culture that fosters an environment of creativity
and innovation.E) Analyze the effectiveness of the balanced
scorecard employed in the simulation in terms of how its use
affected individual performance
The balance scorecard provides a single number that can be
compared between companies to identify its position in the
market. Balance scorecard is considered as the main indicator
for evaluating your performance in the market. The balanced
scorecard is used extensively in the industry for measuring the
performance. Its popularity encourages and evaluates the
executives to manage properly and to consider the performance
criteria even at the same time.
Most important the financial performance needs to be evaluated

7. effectively because all other decisions are depended upon it and
decision. The net profit and the income statement can be
evaluated for measuring the financial performance and on its
basis the decision should be taken. With the help of the
financial performance of the company and measuring the
performance of overall activities the market effectiveness of the
company, the financial risk, and the market productivity can be
evaluated in an effective and efficient manner.
Comfortable shoes did not very well in utilizing the balance
scorecard. If we had paid more attention to the balance
scorecard we could have put into place a continuous
improvement program. We could have utilized the information
to determine how we were doing financially, for example had
we utilized this tool we could have foreseen a dramatic drop in
net profit from $92,252 to $55, 490 from year 16 to 17. Another
example of how we could have utilized the balanced scorecard,
we could have determined how good we were at satisfying our
customers, delivery time was something that changed a couple
of times throughout the simulation. The scorecard could have
let us know if the customer was satisfied with the time that they
were getting their shoes.E1) How would develop a balanced
scorecard that ensures appropriate emphasis on both leading and
lagging indicators.
If I were given the opportunity to develop and create my own
balanced scorecard, the first thing I would do would be to
provide data that focuses on a company’s short-term and long-
term goals and objectives. In order for a BSC to reflect the
actual position of a company it would need to consider
performance drivers and outcome measures (leading and lagging
indicators). For this purpose we would have to include both
indicators in the BSC. A leading indicator is defined as a
measurable economic factor that changes before the economy
starts to follow a particular pattern or trend. Leading indicators
are used to predict changes in the economy, but are not always
accurate. A lagging indicator is defined as a measurable

8. economic factor that changes after the economy has already
begun to follow a particular pattern or trend. This would allow
for the company and/or team members to see a more
comprehensive picture of the company’s current standings as
compared to their goals. Lagging indicators need long-term
based information in order to validate trends predicted.
Leading indicators need short-term based information to
identify patterns and predict long-term trends. In order for the
BSC to correctly indicate the status of a company it needs to
reflect both leading and lagging indicators.
References
Mauborgne R. (2000). Blue ocean strategy: How to create
uncontested market space and make competition irrelevant. New
York, NY: Oxford University Press
Mintzberg H.(2003). Strategy Safari: the complete guide
through the wilds of strategic management. New York, NY:
Oxford University Press
Thompson, A. (2011). Crafting and Executing Strategy (18th
ed). McGraw-Hill Learning
Solution
s. Retrieved from
http://online.vitalsource.com/books/0077771680/id/UB4-6

9. B. Resource Strengths
(0) Unsatisfactory
(1) Needs Revision
(2) Satisfactory
The candidate does not provide a plausible analysis of the
actions the candidate took to develop a resource strength at a
key point during the last four years of the simulation.
The candidate provides a plausible analysis, with insufficient
support, of the actions the candidate took to develop a resource
strength at a key point during the last four years of the
simulation.
The candidate provides a plausible analysis, with sufficient
support, of the actions the candidate took to develop a resource
strength at a key point during the last four years of the
simulation.
Criterion Score: 1.00
Comments on this criterion: The response discusses investing in
celebrity endorsements and clearly states,"As you can see the
use of celebrity endorsements was a very effective way to
market and sale more shoes." Additional discussion is needed
about the specific strength that celebrity endorsements helped to
develop.
B1. Competitive Power

10. (0) Unsatisfactory
(1) Needs Revision
(2) Satisfactory
The candidate does not provide a plausible analysis of how
competitively powerful the strength was.
The candidate provides a plausible analysis, with insufficient
support, of how competitively powerful the strength was.
The candidate provides a plausible analysis, with sufficient
support, of how competitively powerful the strength was.
Criterion Score: 1.00
Comments on this criterion: The work provides a logical
analysis of the company's success with celebrity endorsements.
Further development is needed to provide a plausible analysis of
the strength of the competitive power identified in aspect B.
C. Organizational Culture
(0) Unsatisfactory
(1) Needs Revision
(2) Satisfactory
The candidate does not provide a logical evaluation of the
team’s approach to managing an organizational culture that
supports strategic plan execution.
The candidate provides a logical evaluation, with insufficient
support, of the team’s approach to managing an organizational
culture that supports strategic plan execution.
The candidate provides a logical evaluation, with sufficient

11. support, of the team’s approach to managing an organizational
culture that supports strategic plan execution.
Criterion Score: 1.00
Comments on this criterion: The work discusses investing in
employees with salary increases and incentives, developing a
mission statement, creating a sense making device and
supporting a comfortable communicative work environment.
Additional specific discussion is needed about culture changing
approaches.
C1. Approach Comparison
(0) Unsatisfactory
(1) Needs Revision
(2) Satisfactory
The candidate does not provide a logical comparison of the
team’s approach with proven management practices.
The candidate provides a logical comparison, with insufficient
detail, of the team’s approach with proven management
practices.
The candidate provides a logical comparison, with sufficient
detail, of the team’s approach with proven management
practices.
Criterion Score: 1.00
Comments on this criterion: The submission provides a good
analysis of staffing the organization with capable managers and
employees, installing information and operating systems, tying

12. rewards and incentives to staff achievements, and instilling a
corporate culture that promotes strategy. However, the analysis
of #2 building organizational capabilities, #3 creating a strategy
supportive structure, #4 instituting policies and procedures and
#5 adopting best practices and business processes are lacking
detailed support. Further clarification and development is
needed.
D. Creativity and Innovation
(0) Unsatisfactory
(1) Needs Revision
(2) Satisfactory
The candidate does not provide a logical evaluation of the
candidate’s promotion of creativity and innovation during the
simulation.
The candidate provides a logical evaluation, with insufficient
support, of the candidate’s promotion of creativity and
innovation during the simulation.
The candidate provides a logical evaluation, with sufficient
support, of the candidate’s promotion of creativity and
innovation during the simulation.
Criterion Score: 1.00
Comments on this criterion: The work discusses the company's
lack of creativity and innovation during the simulation. The
response thoughtfully concludes: "one of things that we could
have done to be innovative was to create a gym shoe and have a

13. celebrity such as Labron Game endorse the gym shoe." Further
development is needed to identify the specific promotions that
could have been taken to encourage creativity and innovation.
E. Balance Scorecard Effectiveness
(0) Unsatisfactory
(1) Needs Revision
(2) Satisfactory
The candidate does not provide a plausible analysis of the
effectiveness of the balanced scorecard employed in the
simulation in terms of how its use affected individual
performance.
The candidate provides a plausible analysis, with insufficient
support, of the effectiveness of the balanced scorecard
employed in the simulation in terms of how its use affected
individual performance.
The candidate provides a plausible analysis, with sufficient
support, of the effectiveness of the balanced scorecard
employed in the simulation in terms of how its use affected
individual performance.
Criterion Score: 1.00
Comments on this criterion: A detailed discussion of why a
company would use a balanced scorecard is presented. The
response notes that the company was not very effective using
the balanced scorecard and how better utilization could have
improved customer satisfaction, finances and continuous

14. improvement efforts. Additional discussion is needed of how
the scorecard affected the company's performance.