1. You work for the management consultancy part of a major accountancy firm and have been asked to advise a client on their management accounting and control systems. This month, you are working for an industrial company, manufacturer of toys for children. It is headquarter in London, but all its production processes take place abroad in less developed countries due to cheap labour, particularly, in handmade products. The company presented a steady and sharp growing financial performance over the last years. However, during its quarterly board meeting, questions were risen regarding its production process and the reputational damage that inadequate labour conditions in different countries could have for its brand and image in Europe. Both executive and non-executive directors believe that company should strengthen its social corporate responsibility footprint and design performance metrics aligned with both financial and non-financial metrics. The newly appointed CFO was made aware of these requests and contracted your consultancy firm to help in this transition. She would like to construct and adopt a balance scorecard (BSC) approach to performance management and identify key performance indicators for the major categories of business activity. Required: In preparation for your first team meeting, you must draft a briefing note to explain: a) The main principles of performance management systems and how the BSC approach is aligned or not to each of them. 18 marks) b) How a balanced Scorecard may be constructed to suit the industrial manufactory company financial and non-financial objectives, with an illustration of the sort of measures that could be considered in each dimension (two per quadrant). [10 marks! c) Given the multi-territoriality of the company, how the BSC would aligned the perspective of multiple stakeholders in a single performance measurement system and what possible challenges exist in this transition process. 17 marks