Studio 1510 is a high-end salon located at the heart of the city centre. It is owned by a couple of highly talented stylists. The salon mostly focuses on hairstyling services and offers only limited spa services. It also consults many beauty magazines and fashion shows all over the country to remain up to date with the latest trends in hairstyling. The owners make sure that all their stylists are constantly trained on the latest styling techniques. Studio 1510 has a very loyal clientele, and most of them are impressed that the stylists use 100 per cent naturally derived hair products. The sale of these hair products also forms a substantial part of the revenue. The business has been profitable since it was set up 15 years ago, but it has started facing increased competition from a couple of salons and spas that have recently opened in the city centre. These salons and spas are equally skilled at hairdressing but also provide spa services. They boast of professional skincare products, private spa areas and medispas. Faced with intense competition and sluggish profitability, the owners are looking at increasing Studio 1510’s offerings and designing a balanced scorecard for the company to improve its internal functions.

Required

1. What are the various non-financial performance measures for Studio 1510’s balanced scorecard?

2. Despite the various merits of the balanced scorecard approach, academics are particularly critical of this approach. Discuss some of the criticisms that academics level at the balanced scorecard approach.