Graino Ltd (‘the Company’) was founded in 2011 by its owner Eddie who had once been a pet shop owner. At that time, Eddie had spotted a gap in the market and so developed a grain free food for dogs. Eddie believed his product would be a success because he knew that dogs are carnivores but as most of the mass-produced dog foods on the market are full of cereals they are very difficult for dogs to digest. Whilst grain free dog foods are much more expensive than the massproduced equivalents they are also much more nutritious, so pets do not need to be fed as much. Now, less than a decade later, Graino Ltd has sales revenues of around £40m each year and employs 102 people. The company does not manufacture its pet foods (as this is done on its behalf by a contract manufacturer) – however, it does market and distribute its dog foods and related products within the UK and has created a brand that is known for being natural, luxurious, and of higher quality than the rest. Presently, Graino Ltd only distributes its products via independent bricks and mortar pet shops. The product cannot be found in supermarkets, convenience stores or online only retailers. This is because Eddie and the Directors believe that independent pet shops are better at selling their products. As the products are different, they need explaining to customer. In a recent interview, Eddie stated that “We try to look after the independent trade...one of their threats is online discounters, so we don’t supply online-only vendors.’ A feature of the market is that there is a growing trend of pet owners trying to incorporate their pets into more and more aspects of their human lives (like holidays, nutrition, healthcare, and more). Graino has been able to tap into this, because increasingly, pet owners also want healthier foods for their pets and are prepared to ‘trade up’ to products which have a higher price point. Question 3 continues on the next page. 5R6Z0041_2021_R Page 9/11 Question 3 continued. As part of a recent strategic review, the company identified a new mission statement and a number of important long-term goals. The new mission statement reads ‘Focused on providing wholesome, all-natural and nutritionally-beneficial food for our four-legged friends – Graino sets out to ensure our pets diet suits their ancestral needs, and that they are provided with everything they need to live a long and happy life’. The Finance Director has been asked to find ways to help to turn this strategy into action. He has decided that the implementation of a Balanced Scorecard and Strategy Map would be appropriate. Required: 

(a) Briefly explain how the Balanced Scorecard can be used as a tool to turn ‘Strategy into Action’ (4 marks) 

(b) Evaluate the benefits of using a Balanced Scorecard and a Strategy Map within a company such as Graino Ltd. (9 marks) 

(c) Suggest and justify one critical success factor (CSF) and one key performance indicator (KPI) for each of the three non-financial perspectives of a Balanced Scorecard which could be used by Graino Ltd. (12 marks) Total 25 marks