Highland State Company provides cable and Internet services in Barcelona. There are many competitors that provide similar services. Highland State believes that the key to financial success is to offer a quality service at the lowest cost. Highland State currently spends a significant amount of hours on installation and post-installation support. This is one area that the company has targeted for cost reduction. Highland State's balanced scorecard for 2017 follows. Target Actual Objectives Measures Performance Performance Financial Perspective Increase shareholder value Operating-income changes from productivity $1,200,000 $400,000 Operating-income changes from growth $260,000 $125,000 Increase in revenue from new customer acquisition $25,000 $12,000 Customer Perspective Increase customer satisfaction Positive customer survey responses 70% 65% Increase customer acquisition New customers acquired through company sponsored community events 475 350 Internal-Business-Process Perspective Develop innovative services Research and development costs as a percentage of revenue 5% 6% Increase installation efficiency Installation time per customer 5 hours 4.5 hours Increase community involvement Number of new programs with community organizations; 15 Decrease workplace injuries Number of employees injured in the workplace Learning-and-Growth Perspective Increase employee competence Number of annual training-hours per employee 11 Increase leadership skills Number of leadership workshops offered Increase employee safety Percent of employees who have awareness completed safety certification training 100% 95% Required:+ 1. Was Highland State successful in implementing its strategy in 2017? Explain. (5) 2. Do you agree with Highland State's decision to include measures of developing innovative services (research and development costs) in the internal-business-process perspective of the balanced scorecard? Explain briefly. (3)~ 3. Is there a cause-and-effect linkage between the measures in the internal-business-process perspective and the customer perspective? That is, would you add other measures to the internal-businessprocess perspective or the customer perspective? Why or why not? Explain briefly. (9)- 4. Why do you think Highland State included balanced scorecard measures relating to employee safety and community engagement? How well is the company doing on these measures? (8)<