(a) CAE Limited is preparing its balanced scorecard for the past quarter. The balanced scorecard contains four perspectives: Financial, Customer, Internal Business Process and Learning and Growth. Through its strategic management planning process, CAE Limited has selected two specific objectives for cach of the four perspectives; these specific objectives are listed in Table 3. Table 3: CAE Limited Strategic Objectives Ref. Specific Objective 1 Increase sales of core product line 2 Improve post-sales service 3 Improve employee job satisfaction 4 Increase number of customers 5. Increase plant safety 6. Increase market share 7 Increase pross margins 8. Improve employee product knowledge CAE Limited has collected key performance indicators (KPI) to measure progress toward achieving its specific objectives. Table 4 contains the KPIs and corresponding data that CAE Limited has collected for the past quarter. -- Ref. 1. 2. 3. 4 5 6. 7 8 4. Table 4: CAE Limited Key Performance Indicators Key Performance Indicators Goal Actual Employee turnover rate 7% 9% Number of plant accidents 4 3 Sales revenue growth-core product line $2,000,000 $2,250,000 Hours of employee training provided 2,425 2,250 Gross margin growth percentago 22% 25% Market share percentage 13% 20% Average repair time 1.7 days 1.1 days Number of customers 130,000 125.000 Required: Prepare a balanced Scorecard report for CAE Limited, using the format provided in Table 5. Table 5: CAE Balanced Scorecard Report CAE Limited Balanced Scorecard Report For Quarter Ended December 31 Perspective Objective Goal Actual Goal Achieved? (YA Financial Customer Internal Business Processes Learning and Growth ii. Notes on completing scorecard: 1. For each of the specific objectives listed (Table 3), place that objective under the appropriate perspective heading in the report. Select a KPI from the lists of KPIs (Table 4) that would be appropriate to measure progress toward cach objective. (There are two specific objectives for each perspective and one KPI for each of the specific objective), Indicate in the Inst column of the report if the associated KPI goal has been achieved (Y=Yes and N=No). (10 marks) 111 (6) Results from CAE Limited's most recent year of operations is presented in Table 6. Table 6: CAE Operating Results for Year Ended December 31+ Ref 1 2 3. 4. Item Operating Income Total Assets Current Liabilities Sales TTS 8,060 15.500 4,000 31.000 The management of CAE Limited requires a Target Rate of Return on investments of 15%. Required: 1. Calculate the following measures: Sales Margin Capital Turnover Return on Investment (ROI) Residual Income (RI) 11 111 IV. (8 marks) 2. Comment on CAE's performance over the last year, (4 marks) 3. Explain to CAE's management which performance measurement, ROI or RI, promotes goal congruence and why