Amstrong Stores (Armstrong) is a listed business with a chain of 126 general department stores in South Postland. The company is known for the high quality of its products, mainly food and clothing. The majority of its goods are sourced from trusted manufacturers and branded under the company's own 'Stronharm' label.

Currently, Armstrong faces a tough competitive environment with all the major players in its market trying to secure their positions. Poor economic conditions worldwide have significantly affected South Postland. Consumer spending is falling throughout the economy and there is no immediate likelihood of a resumption of growth.

Armstrong's chief executive office (CEO) has recently conducted a strategic review of the business in the context of the current economic recession. She gas identified the following strategy as critical for Armstrong's success:

Focus on key customers - those who are occasional shoppers but not currently loyal to the business.

Ensure Armstrong's offering addresses their needs.

Cut out costs that do not address these customers' priorities.

Amend current processes to meet this new focus.

Build for the future with a programme of sustainable development.

The company now needs to address the impact of this new strategy on its performance measurement systems. Armstrong uses a balanced scorecard to assess its strategic performance and the scorecard is used to connect the business strategy with it more detailed performance measures. The CEO has asked you to consider the implications of the new strategy for the performance measures used by the business.

Currently, Armstrong uses economic value added (EVA^TM), earnings per share (EPS) growth, and share price performance to monitor its financial performance. The company supplied data in Appendix 1, which the CEO wishes to see used to assess the financial performance from the shareholders' perspective. She has asked that you explain the problems of capturing performance with these particular metrics and also how they may affect management's behaviour.

Appendix 1 - Financial data for Armstrong Stores

	2020	2021
Operating profit	$505.7 m	$435.1 m
Interest	$40.2 m	$77.6 m
Profit before tax	$465.5 m	$357.5 m
Profit for the year	$353.8 m	$271.7 m
Average number of shares in issue	1600	1600
EVATM	$306 m	$110 m
Share market information
South Postland market index	1,115.2	724.9
Retailing sector index	2,450.7	1,911.5
Armstrong Stores (average share price)	$2.45	$2.08

The four perspectives of the balanced scorecard are financial, _______, internal business process, and innovation and learning. Focus on key customers directly addresses the _______ perspective. Suitable performance measurement would segment the market, such as by customer age and gender, and identify the changing _________ within each segment. Suitable performance measures from the customer perspective would be levels of repeat business measured as repeat visits per_______and customer _______scores. Customer satisfaction scores could also provide some insight in_______

Cost-cutting connects to the internal business process perspective. Suitable performance measures would be efficiency savings generated by ___________ unnecessary processes/ products.

Program of sustainable development connects to the_________ perspective. Suitable performance measures would be the_______ of energy use of the business.

The year-on-year performance of Armstrong has __________, with earnings per share A__________by__________. This view is consistent with EVA^TM in 2021 fallen by ________ from 2020. The positive EVA^TM in 2021 is also consistent with its share price decline of _________compared to a fall in the retail sector of _________