Balanced Scorecard, environmental and social performance. Cerebral Chocolates makes custom-labeled, high-quality, specialty candy bars for special events and advertising purposes. The company employs several chocolatiers who were trained in Germany. The company offers many varieties of chocolate, including milk, semi-sweet, white, and dark chocolate. It also offers a variety of ingredients, such as coffee, berries, and fresh mint. The real appeal for the companys product, however, is its custom labeling. Customers can order labels for special occasions (for example, wedding invitation labels) or business purposes (for example, business card labels). The companys balanced scorecard for 2013 follows. For brevity, the initiatives taken under each objective are omitted.

Objectives	Measures	Target Performance	Actual Performance
Financial Perspective:
Increase shareholder value	Operating-income changes from price recovery	$500,000	$750,000
	Operating-income changes from growth	$100,000	$125,000
	Cost-savings due to reduced packaging size	$20,000	$25,000
Customer Perspective:
Increase market share	Market share of overall candy bar market	8%	7.8%
Increase the number of new product offerings	Number of new product offerings	5	7
Increase customer acquisitions due to sustainability efforts	Percentage of new customers surveyed who required recycled paper options	35%	40%
Internal-Business-Process Perspective:
Reduce time to customer	Average design time	3 days	3 days
Increase quality	Internal quality rating (10-point scale)	7 points	8 points
Increase use of recycled materials	Recycled materials used as a percentage of total materials used	30%	32%
Learning-and-Growth Perspective:
Increase number of professional chocolatiers	Number of chocolatiers	5	6
Increase number of women and minorities in the workforce	Percentage of women and minorities in the workforce	40%	38%

Question 1. Was Cerebral successful in implementing its strategy in 2013? Explain your answer.

Question 2. Would you have included some measure of customer satisfaction in the customer perspective? Are these objectives critical to Cerebral for implementing its strategy? Why or why not? Explain briefly.

Question 3. Explain why Cerebral did not achieve its target market share in the candy bar market but still exceeded its financial targets. Is market share of overall candy bar market a good measure of market share for Cerebral? Explain briefly.

Question 4. Do you agree with Cerebrals decision not to include measures of changes in operating income from productivity improvements under the financial perspective of the balanced scorecard? Explain briefly.

Question 5. Why did Cerebral include balanced scorecard standards relating to environmental and social performance? Is the company meeting its performance objectives in these areas?