Martel company manufactures custom-labeled, high-quality and customized cakes for special business and social events. The companys strategy primarily focused on product differentiation and personal customer service. The company employs several bakers who were trained in Europe. The company offers variety of special rich cakes with cream, white and dark chocolate, nuts and berries. The real appeal for the companys product, however, is its unique labeling. Customers can order customized labels for special occasions (for example, wedding invitation labels) or business purposes (for example, business card labels). The companys balanced scorecard for the year 2019 is as follows.

Objectives	Measures	Target Performance	Actual Performance
Financial Perspective Increase shareholder value	Operating-income changes from productivity Cost savings due to reduced excess ingredients unused	$2,000,000 $30,000	$2,500,000 $45,000
Customer Perspective Increase in market share Increase number of new products Increase customer service time	Market share of overall confectionery market Number of new product offerings Delivery cycle time	10% 4 8 days	7.5% 6 6 days
Internal-Business Process Perspective Reduce number of rejections Reduce cycle time Increase quality	Yield Average design time Internal quality rating (10 point scale)	80% 4 days 7 points	90% 4days 6 points
Learning and Growth perspective Increase number of women in the workforce Develop process skills	Percentage of women in the workforce Percentage of staff trained	40% 92%	35% 94%

QUESTION 1: (Contd )

Required:

1. Explain how does the Balance Scorecard represent Martels business strategy.
2. Evaluate whether Martel was successful in implementing its strategy in 2019.
3. Discuss the possible reasons as to why Martel did not achieve its target market share in the confectionary market but still exceeded its financial targets.

d.Evaluate the suitability of a Balanced Scorecard as a performance management model for Martel, assuming that Martel continues with its existing strategy. Your answer should include a detailed explanation and justification of one key performance indicator (KPI) from each perspective of a balanced scorecard, and an explanation of the linkages between the perspectives.