Cool Runnings Ltd (CR), is an organiser staging events on behalf of clients across Tasmania. Before the onset of COVID-19, beginning 2020, CRs stated strategic objective is to: provide advice and access to resources in the creation, staging, promotion and operation of events.

It then communicated this objective externally, through a variety of advertising and promotional materials during early 2020. The company defined a client strategy as follows:

1. CR focuses on growing revenue and profits through increased support to its existing clients

2. Customer loyalty: We want the customers to visit us throughout the year and come to CR for the complete range of their event organising needs.

3. To create this loyalty:

• Our Brand must satisfy the customers aspirations and goals, and
• Our advice and support must promote customer loyalty.

4. We must do a superb job of defining our customers needs.

The engagement with clients was considered extremely important. Key attributes were availability of consultants in the offices in Hobart, Launceston, Devonport, and Burnie on short notice. Professional on-site visits are considered essential. High quality, in-office engagement was captured by an explicit vision of the five elements of the perfect engagement:

1. Great looking offices with professional impact

2. Clients welcomed by knowledgeable, friendly consultants

3. Clear communication of agendas, minutes of meetings, and action lists

4. Event organisers with good event organising knowledge

5. A sincere thanks and diarising of the next meeting

As a result of the COVID-19 pandemic, CR experienced a massive decline in the number of clients visiting their offices, with some events being cancelled. CR did not qualify for the Job keeper grant and have decided to reduce their number of offices, and to embark on a voluntary employee redundancy program. In the later part of 2020, CR experienced a resurgence in customer interest in organising events. However, the nature of engagement with customers have changed to mostly zoom meetings, with several recurrent events now being staged online.

To be sustainable, the company determined that it would have to reinvent itself in offering services to their clients. The company also identified a clear need to be socially responsible in arranging safe and secure events which are compliant with government directives on public gatherings. CR was reasonably successful in responding to the COVID-19 pandemic, resulting in servicing a few new customers which filled the void left by cancelled events to some extent.

The table below summarises the target and actual performance for 2020.

Objectives	Measures	Target performance	Actual performance
Financial perspective
Increase shareholder value	Operating profit changes from productivity improvements	$0		$40,000
	Operating profit changes from growth in existing customer services	$500,000		$-200,000
Customer perspective
Increase growth of existing customer services market share	Market share in providing services to existing customers	90%		95%
Internal-business-process perspective
Improve professional impact of offices	Number of stores	75%		100%
Communication of meeting agendas	Days notice	5 days		2 days
Learning and growth perspective
Develop professional office engagement skills	Percentage of employees trained in professional office engagement with clients	90%		30%
Enhance customer service	Percentage of employees trained in event organisation	85%		15% (1st quarter)

Required

1. Explain whether CR was successful in implementing its strategy in 2020. If not, offer possible reasons why not. Write half a page.

[7 marks]

2. Evaluate CRs balanced score card and offer a critique of why the company did not reach its target market share in 2020? Explain what other measures you might want to add under the customer perspective and why. Write half a page.

[7 marks]

3. Evaluate the learning-and-growth perspective. Do you think employee training and satisfaction are now less important for CR? In your answer consider the impact of COVID-19 and the redundancy program. Explain fully by considering CRs social responsibilities and sustainability strategies in the business context. Write half a page.