Fisher & Paykel manufactures medical equipment in its facility in Auckland which has high fixed costs. The market for medical equipment is competitive so Fisher & Paykel's strategy is to differentiate their products by providing consumers with unique features. Fisher & Paykel uses innovation, and lean manufacturing techniques to gain a competitive advantage.

In the 2020/21 fiscal year, Fisher & Paykel planned to achieve their strategy by improving yields and reducing defects in its manufacturing operations. Fisher & Paykel's balanced scorecard for the just completed fiscal year 2021 as well as its performance in 2020 follows:

Objectives	Measures	Actual 2020 Performance	Target 2021 Performance	Actual 2021 Performance
Financial Perspective
Increase shareholder value	Operating Income changes from productivity improvements	$30,000,000	$13,000,000	$37,000,000
	Operating Income changes from growth	$48,000,000	$100,000,000	$200,000,000
Customer Perspective
Increase market share	Market share in non-invasive ventilators	50%	55%	60%
Internal Business Perspective
Improve manufacturing quality	First Pass Yield (measure of good units with no rework)	99.1%	99.2%	98.8%
Reduce delivery time to customers	Order delivery time	27 days	24 days	40 days
Learning and Growth Perspective
Develop process skills	Percentage of employees trained in process quality management	89%	90%	85%
Enhance information system capabilities	Percentage of manufacturing processes with real time feedback	84%	85%	83%

Fisher & Paykel Data	Actual 2019 Performance	Actual 2020 Performance	Target 2021 Performance	Actual 2021 Performance
Operating Revenue	1,070,000,000	$1,263,000,000	$1,500,000,000	$1,971,000,000
Net Assets	$913,000,000	$973,000,000	$1,200,000,000	$1,520,000,000
Operating Income	$209,000,000	$287,000,000	$400,000,000	$524,000,000

1. Is Fisher & Paykel's balanced scorecard useful in helping the company understand why it reached its target market share in 2021? If it is, explain why. If it is not, explain why not. What other measures might Fisher & Paykel use to better understand its' performance in relation to its strategy.

2. Explain to Fisher & Paykel's management about the cause-and-effect linkages between the different measures in their Balanced Scorecard. Include in your memo an analysis of the problems between the Internal Business Perspective and the Customer Perspective. Do you think employee satisfaction and the development of new products are critical for Fisher & Paykel to implement its strategy? Why or why not? Explain.

refer:

https://www.stuff.co.nz/national/the-detail/300099977/the-detail-preparing-for-coronavirus-paid-off-for-fisher--paykel-healthcare