Target Performance Performance Actual Objectives Measures Financial Perspective Increase shareholder value Operating-income changes from price recovery Operating-income changes from growth Cost savings due to reduced packaging size $1,000,000 $1,500,000 $200,000 $250,000 $40,000 $50,000 Customer Perspective Increase market share Market share of overall candy bar market 8% 7.8% Increase the number of new Number of new product offerings product offerings Increase customer acquisitions due to sustainability efforts Percentage of new customers surveyed who required recycled paper options 35% 40% Internal-Business-Process Perspective Reduce time to customer 3 days Average design time Internal quality rating (10-point scale) 3 days Increase quality 7 points 8 points Increase use of recycled materials Recycled materials used as a percentage of total materials used 30% 32% Learning-and-Growth Perspective Increase number of professional Number of chocolatiers 6 chocolatiers Increase number of women and Percentage of women and minorities in the workforce minorities in the workforce 40% 38% 1. Was Gardini successful in implementing its strategy in 2017? Explain your answer. 2. Would you have included some measure of customer satisfaction in the customer perspective? Are these objectives critical to Gardini for implementing its strategy? Why or why not? Explain briefly. 3. Explain why Gardini did not achieve its target market share in the candy bar market but still exceeded its financial targets. Is "market share of overall candy bar market" a good measure of market share for Gardini? Explain briefly. 4. Do you agree with Gardini's decision not to include measures of changes in operating income from productivity improvements under the financial perspective of the balanced scorecard? Explain briefly. 5. Why did Gardini include balanced scorecard standards relating to environmental and social perfor- mance? s the company meeting its performance objectives in these areas? Required
Target Performance Performance Actual Objectives Measures Financial Perspective Increase shareholder value Operating-income changes from price recovery Operating-income changes from growth Cost savings due to reduced packaging size $1,000,000 $1,500,000 $200,000 $250,000 $40,000 $50,000 Customer Perspective Increase market share Market share of overall candy bar market 8% 7.8% Increase the number of new Number of new product offerings product offerings Increase customer acquisitions due to sustainability efforts Percentage of new customers surveyed who required recycled paper options 35% 40% Internal-Business-Process Perspective Reduce time to customer 3 days Average design time Internal quality rating (10-point scale) 3 days Increase quality 7 points 8 points Increase use of recycled materials Recycled materials used as a percentage of total materials used 30% 32% Learning-and-Growth Perspective Increase number of professional Number of chocolatiers 6 chocolatiers Increase number of women and Percentage of women and minorities in the workforce minorities in the workforce 40% 38% 1. Was Gardini successful in implementing its strategy in 2017? Explain your answer. 2. Would you have included some measure of customer satisfaction in the customer perspective? Are these objectives critical to Gardini for implementing its strategy? Why or why not? Explain briefly. 3. Explain why Gardini did not achieve its target market share in the candy bar market but still exceeded its financial targets. Is "market share of overall candy bar market" a good measure of market share for Gardini? Explain briefly. 4. Do you agree with Gardini's decision not to include measures of changes in operating income from productivity improvements under the financial perspective of the balanced scorecard? Explain briefly. 5. Why did Gardini include balanced scorecard standards relating to environmental and social perfor- mance? s the company meeting its performance objectives in these areas? Required
Chapter9: Projecting Financial Statements
Section: Chapter Questions
Problem 2EP
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Question
Balanced scorecard, environmental, and social performance. Gardini Chocolates makes custom-labeled, high-quality, specialty candy bars for special events and advertising purposes. The company employs several chocolatiers who were trained in Germany. The company offers many varieties of chocolate, including milk, semi-sweet, white, and dark chocolate. It also offers a variety of ingredients, such as coffee, berries, and fresh mint. The real appeal for the company’s product, however, is its custom labeling. Customers can order labels for special occasions (for example, wedding invitation labels) or business purposes (for example, business card labels). The company’s balanced scorecard for 2017 follows. For brevity, the initiatives taken under each objective are omitted.
Transcribed Image Text:Target
Performance Performance
Actual
Objectives
Measures
Financial Perspective
Increase shareholder value
Operating-income changes from
price recovery
Operating-income changes from
growth
Cost savings due to reduced
packaging size
$1,000,000
$1,500,000
$200,000
$250,000
$40,000
$50,000
Customer Perspective
Increase market share
Market share of overall candy bar
market
8%
7.8%
Increase the number of new
Number of new product offerings
product offerings
Increase customer acquisitions
due to sustainability efforts
Percentage of new customers
surveyed who required recycled
paper options
35%
40%
Internal-Business-Process Perspective
Reduce time to customer
3 days
Average design time
Internal quality rating (10-point
scale)
3 days
Increase quality
7 points
8 points
Increase use of recycled
materials
Recycled materials used as a
percentage of total materials used
30%
32%
Learning-and-Growth Perspective
Increase number of professional
Number of chocolatiers
6
chocolatiers
Increase number of women and
Percentage of women and
minorities in the workforce
minorities in the workforce
40%
38%
Transcribed Image Text:1. Was Gardini successful in implementing its strategy in 2017? Explain your answer.
2. Would you have included some measure of customer satisfaction in the customer perspective?
Are these objectives critical to Gardini for implementing its strategy? Why or why not? Explain
briefly.
3. Explain why Gardini did not achieve its target market share in the candy bar market but still exceeded
its financial targets. Is "market share of overall candy bar market" a good measure of market share for
Gardini? Explain briefly.
4. Do you agree with Gardini's decision not to include measures of changes in operating income from
productivity improvements under the financial perspective of the balanced scorecard? Explain
briefly.
5. Why did Gardini include balanced scorecard standards relating to environmental and social perfor-
mance? s the company meeting its performance objectives in these areas?
Required
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