Petrocal, Inc., refines gasoline and sells it through its own Petrocal gas stations. (Click the icon to view additional information.) Petrocal's balanced Scorecard for 2017 follows. For brevity, the initiatives taken under each objective are omitted. (Click the icon to view the balanced scorecard.) Read the requirements. ..... More info On the basis of market research, Petrocal determines that 60% of the overall gasoline market consists of "service-oriented customers," medium- to high-income individuals who are willing to pay a higher price for gas if the gas stations can provide excellent customer service, such as a clean facility, a convenience store, friendly employees, a quick turnaround, the ability to pay by credit card, and high-octane premium gasoline. The remaining 40% of the overall market are "price shoppers" who look to buy the est available. Petrocal's strategy is to focus on the 60% of service-oriented customers. Print Done Data table Actual Target Performance Measures Performance Objectives Financial Perspective Increase shareholder value $ Operating-income changes from price recovery Operating-income changes from growth 80,000,000 $ 85,000,000 60,000,000 $ 62,000,000 $ Customer Perspective 4% 3.8% 92 points Increase market share Market share of overall gasoline market Internal-Business Process Perspective Improve gasoline quality Quality index Improve refinery performance Refinery-reliability index (%) Ensure gasoline availability Product-availability index (%) Learning-and-Growth Perspective Increase refinery process capability Percentage of refinery processes with advanced 93 points 91% 91% 99% 99.5% 94% 95% controls Print Done - Requirements 1. Was Petrocal successful in implementing its strategy in 2017? Explain your answer. 2. Would you have included some measure of employee satisfaction and employee training in the learning-and-growth perspective? Are these objectives critical to Petrocal for implementing its strategy? Why or why not? Explain briefly. 3. Explain how Petrocal did not achieve its target market share in the total gasoline market but still exceeded its financial targets. Is "market share of overall gasoline market" the correct measure of market share? Explain briefly. 4. Is there a cause-and-effect linkage between improvements in the measures in the internal-business process perspective and the measure in the customer perspective? That is, would you add other measures to the internal-business-process perspective or the customer perspective? Why or why not? Explain briefly. 5. Do you agree with Petrocal's decision not to include measures of changes in operating income from productivity improvements under the financial perspective of the balanced Scorecard? Explain briefly. Print Done Requirement 1. Was Petrocal successful in implementing its strategy in 2017? Explain your answer. Petrocal was successful at implementing its strategy in 2017 for many reasons. Choose two reasons that support why Petrocal was successful or unsuccessful at implementing its strategy in 2017. Petrocal had financial success from implementing the strategy, however, that does not supersede deficiency in market share on the scorecard. The scorecard focuses on "service-oriented customers" by measuring process improvement, quality, market share, and financial success from product differentiation and charging higher prices for customer service. Petrocals is measuring "market share in the overall gasoline market" rather than in the "price-oriented customer" market segment which is an important scorecard measure. Based on the scorecard, it appears that Petrocal achieved all targets in the financial, internal business, and learning and growth perspectives, even though it missed the market share target