Comtex Company provides cable and internet services in the Greater Boston area. There are many competitors that provide similar services. Comtex believes that the key to financial success is to offer a quality service at the lowest cost. Comtex currently spends a significant amount of hours on installation and post-installation support. This is one area that the company has targeted for cost reduction. Comtex’s balanced scorecard for 2022 follows.

Required

1 Was Comtex successful in implementing its strategy in 2022? Explain.
2 Do you agree with Comtex’s decision to include measures of developing innovative services (research and development costs) in the internal-business-process perspective of the balanced scorecard? Explain briefly.
3 Is there a cause-and-effect linkage between the measures in the internal-business-process perspective and the customer perspective? That is, would you add other measures to the internal-business-process perspective or the customer perspective? Why or why not? Explain briefly.

4 Why do you think Comtex included balanced scorecard measures relating to employee safety and community engagement? How well is the company doing on these measures?

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Objectives Financial perspective Increase shareholder value Measures Operating-income changes from productivity Operating-income changes from growth Increase in revenue Target performance Actual performance $2 400 400 $800 000 $520 000 $250 000 $50.000 $24 000 from new customer acquisition Customer perspective Increase customer satisfaction Positive customer survey responses 70% 65% Increase customer acquisition New customers acquired through company 475 350 sponsored community events Internal-business-process perspective Develop innovative services Increase installation efficiency Increase community involvement Decrease workplace injuries customer Number of new programs with community organisations Number of employees injured in the workplace Research and 5% 6% development costs as a percentage of revenue Installation time per 5 hours 4.5 hours 12 15 <3 7