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Nordstrom, Inc: Analysis and comment 2009 annual report

1. What is Nordstrom's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?

2. Page 3 of the annual report summarizes six measures that Nordstrom collectively refers to as its scorecard. Do these measures constitute a balanced scorecard? Why or why not?

3. Identify four measures that Nordstrom could include in the financial perspective of a balanced scorecard. How do the measures that you have chosen differ from one another? Ideally, should each measure increase or decrease overtime?

4. Identify for measures that Nordstrom could include in the customer perspective of a balanced scorecard. Feel free to create measures that are not explicitly mentioned in the annual report. What statements in the annual report motivated your choices? Ideally, should each of your measures increase or decrease overtime?

5. Identify for measures that Nordstrom could include in the internal business process perspective of a balanced scorecard. Feel free to create measures that are not explicitly mentioned on the annual report. What statements in the annual report motivated your choices? Ideally, should each of your measures increase or decrease overtime?

6. Identify four measures that Nordstrom could include in the learning and growth perspective of a balanced scorecard. Feel free to create measures that are not explicitly mentioned in the annual report. What statements in the annual report motivated your choices? Ideally, should each of your measures increase or decrease overtime?

7. Create four hypothesis statements (in "if-then" form) that demonstrate four of the causal links between measures that you have chosen.

Solution Preview

Attached is the 2009 annual report.

1. What is Nordstrom's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?

Customer intimacy. This is clear in the first paragraph of the presidents' letter to the shareholders. "We follow, first and foremost, a customer strategy at Nordstrom - not a price, brand, technology or any other corporate strategy. We believe it is this singular focus on our customer that has kept us disciplined..." (2009 Annual Report)

2. Page 3 of the annual report summarizes six measures that Nordstrom collectively refers to as its scorecard. Do these measures constitute a balanced scorecard? Why or why not?

What they are referring to as their "scorecard" is their dashboard of favorite measures of performance. It is not "balanced" in any way. Porter and Norton's Balance Scorecard balances measures across four perspectives, financial, customer, internal business process and learning and growth. Scorecards can be balanced in other terms such as a balance of internal versus external measures, hard versus soft measures and so forth. In any case, the measures that Nordstrom provides do not appear balanced by any focus.

3. Identify four measures that Nordstrom could include in the financial perspective of a balanced scorecard. How do the measures that you have chosen differ from one another? Ideally, should each measure increase or decrease ...

Solution Summary

Annual report needed to respond is included in solution. Response is in everyday language and clear measures suitable for novices.

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