Store24 Ban Boredom

[Your Name]
[Instructor Name]
[Course Number]
[Date]
Store24 Balanced Scorecard
The data provided in Exhibit 4 indicates that the “Ban Boredom” strategy that was drafted and implemented by Store24 in 1998 was not only poorly conceived but also not well implemented. First, while drafting the strategy, Store24 top management assumed that the performance of each store depends on the surrounding population and the existing competitors within half-a-mile radius, which is contrary to the result provided by the date. A Pearson’s correlation analysis shown in Table 1 below indicates that there is a weak positive correlation between population and controllable contributions (ρ=0.0213) and number of competitors and controllable contributions (ρ=0.074). This result indicates that the strategy, which was anchored on the impact of the surrounding population, per capita income, and number of competitors was not well thought out.
Table SEQ Table \* ARABIC 1: Correlation analysis
 

Future Controllable Contribution

Ban Boredom Score

Population

0.021314994

-0.427308922

Per capita Income

-0.026886626

-0.332666195

Competitors

0.07403105

-0.179837969

Moreover, the Ban Boredom strategy was implemented alongside “Cause You Just Can’t Wait” (CYCJW) strategy, with the assumption that managers and crew who were skilled on the later strategy would successfully implement the first. However, the regression analysis presented in Table 2 below shows a contrasting relationship between the two strategies and future controllable contributions. Consider the regression model below.
Equation SEQ Equation \* ARABIC 1: Regression Model
Y=-21864-81.383X1+52.049X2+18442.07X3-1744.13X4+ε
Where:
Y=Future controllabel contribution
X1=CYCJW score
X2=Ban Boredom score
X3=Crew skill
X4=Managers skills
From the regression model in Equation 1, every percentage decrease in CYCJW score result into 81.38 increase in controllable contribution, while other variables are kept constant. On the other hand, every percentage increase in Ban Boredom strategy score results into a corresponding increase in controllable contribution...