Question 1 (15 marks) 1. Vic Corporation refines petrol and sells it through its own petrol gas stations On the basis of market research, Vic Corporation determines that 60% of the ov erall petrol market consists of "serviceoriented customers, medium to high in come individuals who are willing to pay a higher price for gas if the gas station s can provide excellent customer service, such as a clean facility, a convenienc e store, friendly employees, a quick tumarotend, the ability to pay by credit card, and high octane premium petrol. The remaining 40% of the overal market are "price shoppers" who look to buy the cheapest petrol available Vic Corporatio n's strategy is to focus on the 60% of service oriented customers. Vic Corporati on's balanced Scorecard for 2018 follows. For brevity, the initiatives taken und er each objective are omitted. Target Actual Objectives Measures Performance Performance Financial Perspective Increase shareholder value Operating income changes fro m price recovery $80,000,000 $85,000,000 43 Operating income changes fro m growth $60,000,000 $62,000,000 Customer Perspective Increase market share Market share of overall gasoli ne market 3.8% Internal Business Process Perspective Improve gasoline quality Quality index 92 points 93 points Improve refinery performan Refinery reliability index (N) 915 91% ce Ensure gasoline availability Product availability index (x) 99% 99.5% Learning-and-Growth Pers pective Increase refinery process ca Percentage of refinery process pability es with advanced controls 95% Required: 1. Was Vic Corporation successful in implementing its strategy in 2018? Expl ain your answer. (3 marks) 2. Would you have included some measure of employee satisfaction and em ployee training in the learning and growth perspective? Are these objectives crit ical to Vic Corporation for implementing its strategy? Why or why not? Explain briefly (4 marks) 3. Explain how Vic Corporation did not achieve its target market share in thet otal gasoline market but still exceeded its financial targets. is market share of overall gasoline market the correct measure of market share? Explain briefly. (4 marks) 4. Do you agree with Vic Corporation's decision not to include measures of ch anges in operating income from productivity improvements under the financial perspective of the balanced Scorecard? Explain briefly (4 marks) Question 1 (15 marks) 1. Vic Corporation refines petrol and sells it through its own petrol gas stations On the basis of market research, Vic Corporation determines that 60% of the ov erall petrol market consists of "serviceoriented customers, medium to high in come individuals who are willing to pay a higher price for gas if the gas station s can provide excellent customer service, such as a clean facility, a convenienc e store, friendly employees, a quick tumarotend, the ability to pay by credit card, and high octane premium petrol. The remaining 40% of the overal market are "price shoppers" who look to buy the cheapest petrol available Vic Corporatio n's strategy is to focus on the 60% of service oriented customers. Vic Corporati on's balanced Scorecard for 2018 follows. For brevity, the initiatives taken und er each objective are omitted. Target Actual Objectives Measures Performance Performance Financial Perspective Increase shareholder value Operating income changes fro m price recovery $80,000,000 $85,000,000 43 Operating income changes fro m growth $60,000,000 $62,000,000 Customer Perspective Increase market share Market share of overall gasoli ne market 3.8% Internal Business Process Perspective Improve gasoline quality Quality index 92 points 93 points Improve refinery performan Refinery reliability index (N) 915 91% ce Ensure gasoline availability Product availability index (x) 99% 99.5% Learning-and-Growth Pers pective Increase refinery process ca Percentage of refinery process pability es with advanced controls 95% Required: 1. Was Vic Corporation successful in implementing its strategy in 2018? Expl ain your answer. (3 marks) 2. Would you have included some measure of employee satisfaction and em ployee training in the learning and growth perspective? Are these objectives crit ical to Vic Corporation for implementing its strategy? Why or why not? Explain briefly (4 marks) 3. Explain how Vic Corporation did not achieve its target market share in thet otal gasoline market but still exceeded its financial targets. is market share of overall gasoline market the correct measure of market share? Explain briefly. (4 marks) 4. Do you agree with Vic Corporation's decision not to include measures of ch anges in operating income from productivity improvements under the financial perspective of the balanced Scorecard? Explain briefly (4 marks)
