Assessing Krystal Company by Using a Balanced Scorecard

1080 Words Feb 7th, 2018 4 Pages
Since its incorporation in 1932, the company has pursued regional expansion in the Southeastern portion of the United States. This focus would help it to achieve a concentration of successful locations rather than a diffusion of locations largely overshadowed by nearby McDonald's and Burger King restaurants. By engaging a strategic process of territorial expansion within the region, the company would achieve a competitive market share versus the above mentioned fast food giants. o Revenues and costs Revenue and costs speak to a secondary strategic objective, which is the need to balance its low consumer cost strategy with some of Krystal's recent financial troubles. Revenues, The Krystal Company History reports, would be eroded throughout the industry in the mid-90s as a result of pricing wars. In 1994, the History reports, the company's revenues climbed to more than $248 million but because of a poor proportion between costs and pricing, the company's profits declined by 6.9%. (The Krystal Company History) o Profitability This is an issue because profitability is, of course, another critical strategic objective. This tertiary objective would also be impacted by legal troubles relating to poor employee relations and, in…
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