Please assist with thisQuestion:

Develop a BSC and strategic mapfor Anthonys Orchard. The company has a number of strategic goals; measuring performance towards those goals will be critical to its sustained success.Visit the Anthonys Orchard case study in the unit resources. Review again the current and historical financials. Consider that one of the companys key goals in its strategic plan is to exceed revenue of $25 million dollars by the year 2015.

Explain the potential value of a BSC to Anthonys Orchard. Describe specific ways that the introduction of a BSC can contribute to this organisation.

Develop a BSC that is aligned to the key goal in the strategic plan, i.e. exceeding revenue of $25 million dollars by 2015. Develop, quantify and justify suitable key performance measurement criteria for Anthonys Orchard in each of these four key areas:Financial,Customer,Internal Business Processes andLearning and Growth.

Note: State and justify all assumptions that you make in relation to the financial measurements use and reference them appropriately.

Interview With Anthony's Orchard CEO Bob Frost CEO Bob Frost discusses the general financial health of the company. Anthony's Orchard is a third-generation, family-owned orchard. We've been in business well over 60 years, having been established in the years following World War II. Throughout our history, the company has experienced periods of tremendous growth, as well as a few very lean years. I think our longevity can be attributed to a number of factors. In agriculture, so much is dependent on production. We have always enjoyed a geographic advantage, as our orchards are located in some of the best regions in the world for growing apples. Howeverand I think this is vitally important to notewe have never been satisfied to rely on that single advantage alone. Historically, our corporate culture has always been one of fostering innovation to support our inherent advantages. We have repeatedly shown a willingness to invest in technology aimed at improving the quality and volume of our products. Since I joined the company in 1990, we have made it a priority to invest in technologies aimed at improving our growing practices. I think this practice has proven to be an invaluable tool in helping us address fluctuations in weather conditions, competition, and a variety of other threats to our market and our organization. We are excited about our future, and have aggressive plans for it. Among these plans is expansion into a new product line. We hope to be producing and distributing Anthony's Orchard apple juice within the next 3 to 5 years. Ultimately, these and other strategic plans will depend on current and projected business conditions. We must remain mindful of cash flow, operating costs, and the threats associated with the natural environmental factors that affect our product line. We feel good about business conditions, but it is also very important to continually monitor those conditions and to consider them when developing and executing strategic plans. Budgeted Income Statement Net Revenue Less Cost of Goods Sold Gross margin Prepared Apple Products Pick your own apples Community Events $ $ $ 8,749,250 3,248,700 2,499,695 (7,692,215) 1,057,035 12% (2,682,356) 566,344 17% (1,536,073) 963,622 39% Less Admin Costs Interest on debts Net Income before taxes Income taxes (40%) Net Income *Includes CSA, Educational programs and festivals Sales in the Quarter 75% collected in this quarter 25% collected from last quarter Cash from sales Budgeted Cash Flows Quarter 2 Quarter 3 $ $ 3,624,411 ### 3,624,411 2,718,308 ### 2,718,308 950,000 906,183 ### 3,668,308 3,624,491 3,624,491 Less: Apple purchases Direct Labour Other ingredients Variable Overhead Fixed Factory overhead Admin Costs Income taxes 8,617,033 304,380 31,433 513,000 181,250 351,250 86,586 304,380 ### ### ### ### ### ### ### 31,433 513,000 181,250 351,250 86,586 Total Cash Expense Before Interest 10,084,933 1,467,900 ### Cash flow from operations (6,416,624) 2,156,512 ### Beginning Cash Balance Less: minimum cash reserve Cash available for operations 1,750,000 500,000 1,250,000 500,000 ### - ### 500,000 - New Short term borrowings Repayment of loan and interest Outstanding loan balance Interest at 3.5% per quarter Capital exp* Ending Cash balance 5,166,624 5,166,624 180,832 500,000 2,156,512 3,010,112 105,354 ### ### ### 853,601 29,876 500,000 Quarter 1 $ *Company is planning to purchase an apple press, which is expected to have a seven year liffe and no slavage value. Company Beginning Inventory Cost of goods processed Direct Labour cost Direct material cost Factory overhead cost Total Cost of processing COGS Budget Prepared Apple Products Pick your own apples Community Events 1,100,000 750,000 180,170 Available for sale less: Ending Inventory 913,140 4,522,575 2,264,000 7,699,715 2,657,856 2,657,856 1,530,903 8,799,715 (1,107,500) 7,692,215 3,407,856.00 (725,500) 2,682,356 1,711,073 (175,000) 1,536,073 Budgeted Balance Sheet Cash Accounts receivable Inventory: Prepared Apple Products Pick your own apples Community Events YE 9/30/11 $ 1,750,000 950,000 1,100,000 750,000 180,170 Total Inventory Fixed Assets Total Assets 2,030,170 2,830,000 7,560,170 Accounts Payable Long term debt Total Liabilities 1,475,000 2,150,000 3,625,000 Shareholder equity 3,935,170 Total Liabilities & Equities 7,560,170 *Note that Anthony's Orchard has long term debt for 30years, which it has not begun to pay back Administrative Budget Technology Marketing Executive Team Finance Facilities Procurement 430,000.00 300,000.00 300,000.00 175,000.00 125,000.00 75,000.00 1,405,000.00 1,530,903 Usage by operating Division Prepared Apple Products Pick your own apples Community Events Finance Marketing Executive Team Technology Procurement Facilities Transfer Pricing Marketing Technology 20% 15% 25% 10% 15% 5% 0% 5% 5% 100% Step down method Explore two options of allocating in the following order Technology, Marketing, Executive Team, Finance, Facilities, Procurement Executive Team, Finance,Technology, Facilities, Procurement, Marketing, 30% 30% 40% 0% 0% 0% 0% 0% 0% 100% Executive Team 30% 20% 25% 5% 5% 0% 5% 5% 5% 100% Total $ 14,497,645 (11,910,644) 2,587,001 18% (1,405,000) (316,140) 865,862 (346,354) 519,517 Quarter 4 Full year $ 3,624,411 14,497,644 2,718,308 10,873,232 906,183 3,668,549 3,624,491 14,541,781 181,250 351,250 86,586 8,617,033 913,140 94,300 1,539,000 725,000 1,405,000 346,344 619,086 13,639,818 3,005,325 901,724 500,000 500,000 1,169,662 950,000 1,385,663 no slavage value. Company uses a 85 cost of capital estaimate. This press will be purchased and owned by our Prepared Products Group Finance Facilities 15% 50% 10% 0% 5% 5% 5% 5% 5% 100% Procurement 40% 20% 15% 5% 5% 5% 5% 5% 0% 100% 30% 30% 15% 5% 5% 5% 5% 0% 5% 100% y our Prepared Products Group Cost of Apples Thousands of Pounds of Braeburn X Average Cost of Braeburn Thousands of Pounds of Honeycrisp X Average Cost of Honeycrisp Direct Materials 2010 Prepared Apple Products $ 6,000.00 362 2,172,000.00 3,950.00 360 1,422,000.00 3,594,000.00 Cost of Other Ingredients Cost per Case 0.4 179000 71,600.00 3,665,600.00 Direct Labour 2010 Prepared Apple Products Pick Your Own Apples Inspection, washing, peeling, coring Saucing Dicing Cooking Canning Total Hours per Case X Number of Cases Number of Labour Hours x Labour Rates Total labor Cost 0.24 0.10 0.10 0.12 0.10 0.66 179,000.00 118,140.00 8.80 1,039,632.00 8.80 - aterials 2010 Pick Your Own Apples Community Events $ 4,550.00 362 $ 362 1,647,100.00 225.00 360 - 81,000.00 1,728,100.00 ### - 1,728,100.00 - Direct Materials 2011 Prepared Apples Cost of Apples Thousands of pounds of Braeburn X average cost of Braeburn $ $ 6,300 358.00 2,255,400 Thousands of pounds of Honeycrisp X average cost of Honeycrisp $ 4,150 380.99 1,581,109 3,836,509 Cost of other ingredients Cost per case X number of cases $ 0 190,000 83,600 3,920,109 Inspection, washing, peeling, coring Saucing Dicing Cooking Cannin Total hours per case X # of cases # of lanor hours X labor rate Total Labor cost Net Revenue Less: Cost of Goods sold Less Admin Costs** Interest on debts Net Income before taxes Income taxes (40%) Net Income Direct Labour 2011 Prepared Apples Pick your own apples 0.20 0.08 0.04 0.12 0.10 0.54 190,000 102,600.00 $ 8.85 ### $ 908,010.00 - 2011 Income Statement Prepared Apples Pick your own apples $ $ 6,621,468 2,273,180 (5,909,619) 711,849 11% (1,909,575) 363,605 16% *Includes CSA, Educational programs and festivals 2011 Sales Cases sold Price/Case $ Prepared Apple Products Pick your own apples Community Events 157,654.00 17,486.00 4,397.00 42.00 130.00 480.00 Sales in the Quarter 75% collected in this quarter 25% collected from last quarter Cash from sales 2011 Cash Flows Quarter 2 $ 2,751,302 2,063,477 650,000 2,713,477 Less: Apple purchases Direct Labour Other ingredients Variable Overhead Fixed Factory overhead Admin Costs Income taxes 7,934,291 302,670 27,867 513,000 162,500 261,250 61,858 ### ### ### ### ### ### Total Cash Expense Before Interest 9,263,436 1,329,145 (6,549,595) 1,422,157 Beginning Cash Balance Less: minimum cash reserve Cash available for operations 3,392,286 500,000 2,892,286 500,000 ### - New Short term borrowings 3,657,673 Repayment of loan and interest Outstanding loan balance Interest at 3.5% per quarter Capital exp* Ending Cash balance 3,657,673 128,019 500,000 Quarter 1 $ Cash flow from operations ### ### 687,826 2,751,302 1,422,157 2,235,516 78,243 ### ### *Company is planning to purchase an apple press, which is expected to have a seven year liffe and no slavage value. Company COGS 2011 Prepared Apples Products Pick your Own Apples Beginning Inventory Cost of goods processed Direct labor cost Direct materials cost Factory overhead cost Total Cost of processing Available for sale Less: Ending inventory Cost of goods sold 908,010 3,920,109 2,189,000 7,017,119 2,635,075 2,635,075 7,017,119 (1,107,500) 5,909,619 2,635,075 (725,500) 1,909,575 Direct Materials 2011 Pick your own apples Community Events $ 4,700 358.00 $ 2,250 ### 1,682,600 2,500 380.99 805,500.00 1,725 ### 952,475 2,635,075 - ### 2,635,075 Community Events 8.85 - Community Events Total $ $ 2,110,560 11,005,208 (1,287,708) 822,852 39% 657,208.00 1,462,708.00 (9,106,901) 1,898,307 17% (1,405,000) (234,728) 618,579 (247,432) 371,147 ### 1,462,708.00 Actual Revenue $ 6,621,468 2,273,180 2,110,560 11,005,208 Quarter 3 $ Quarter 4 $ Full year 2,751,302 2,063,477 687,826 2,751,302 ### ### ### ### 11,005,208 8,253,908 2,713,478 10,967,383 302,670 27,867 513,000 162,500 261,250 61,858 ### ### ### ### 7,934,291 908,010 83,601 1,539,000 650,000 1,045,000 247,432 1,329,145 485,608 12,407,333 1,422,157 2,265,694 (1,439,950) 500,000 500,000 - ### ### ### 1,422,157 813,358 28,468 500,000 ### 1,048,087 ### 1,717,607 ffe and no slavage value. Company uses a 85 cost of capital estaimate. This press will be purchased and owned by our Prepared Products Gr Community Events 1,462,708 1,462,708 1,462,708 (175,000) 1,287,708 by our Prepared Products Group