Gentle Breeze Inc., is considering installing a balanced scorecard to monitor its progress toward long-term goals. One metric is expected to be customer retention which currently is 70%.

Over the next year, the company hopes to increase customer retention by two percentage points. To accomplish this change, the company plans to spend $800,000 in a special advertising campaign. The market research department estimates that a one percentage point increased in retained customers will increase the gross margin ratio by 0.8 percentage points. Sales are expected to be $40,000,000 per year. Last years gross margin ratio was 40%.

A) Discuss the key of the process that will lead to the successful implementation of Gentle Breezes balanced scorecard.

B) Should the advertising campaign be launched? Explain your recommendation.