Determine for each measur A to J
Explan the Solution
O EXERCISE 124 Building a Balanced Scorecard @ 012-4 Lost Peak ski resort was for many years a small, family owned resort serving day skiers from nearby towns. Lost Peak was recently acquired by Western Resorts, a major ski resort operator. The new owners have plans to upgrade the resort into a destination resort for vacationers. As part of this plan, the new owners would like to make major improvements in the Powder 8 Lodge, the resort's on the hill cafeteria. The menu at the lodge is very limited-hamburgers, hot dogs, chili, tuna fish sandwiches, pizzas, french fries, and packaged snacks. With little competition, the previous owners of the resort felt no urgency to upgrade the food service at the lodge. If skiers want lunch on the mountain, the only alternatives are the Powder 8 Lodge or a brown bag lunch brought from home. As part of the deal when acquiring Lost Peak, Western Resorts agreed to retain all of the current employees of the resort. The Page 557 manager of the lodge, while hardworking and enthusiastic, has very little experience in the restaurant business. The manager is responsible for selecting the menu, finding and training employees, and overseeing daily operations. The kitchen staff prepare food and wash dishes. The dining room staff take orders, serve as cashiers, and clean the dining room area Shortly after taking over Lost Peak, management of Western Resorts held a day-long meeting with all of the employees of the Powder 8 Lodge to discuss the future of the ski resort and the new management's plans for the lodge. At the end of this meeting, management and lodge employees selected the following performance measures to be used in creating a balanced scorecard: a Weekly Powder 8 Lodge sales b. Weekly Powder 8 Lodge profit c. Number of menu items d. Dining area cleanliness as rated by a representative from Western Resorts management e. Customer satisfaction with menu choices as measured by customer surveys f. Customer satisfaction with service as measured by customer surveys Average time to take an order h. Average time to prepare an order i Percentage of Kitchen staff completing a reimbursed cooking course at the local community college j Percentage of dining room staff completing a reimbursed hospitality course at the local community college Required: 1. Using the above performance measures, construct a balanced Scorecard for the Powder 8 Lodge User Exhibit 12-9 as a guide. Use arrows to show causal links and indicate with a + or - whether the performance measure should increase or decrease. Exhibit 129 suppets how Jagaar might reflect this strategy in its balanced Scorecard. Each measure contains a parenthetical + or - to indicate if the goal is to increase or decrease the measure. The exhibit also contains arrows that link the measures togsther on a cassand- affect basis. Each link can be read as a hypothesis in the form "If we improve this measure, then this other performance measure should also improve." Starting from the bottom of Exhibit 12-9, we can read the link between performance measures as follows. EXHIBIT 12-9 A Possible Balanced Scorecard for Jaguar Financial Residual Income ) Contribution margin per car sold () Customer Customer surveys: satisfaction with options available 1) Luxury car market share percentage (+) Internal Business Processes Number of options available (1 Average number of errors per vehicle Average time to properly install an option (-) Learning and Growth Employee retention Average training our pet employee >
