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Requirement 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
Requirement 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. Petrocal include some measure of employee satisfaction and employee training in the learning and growth perspective. Petrocal's strategy and ability to charge a premium price is based on customer service. Trained and satisfied employees are to Petrocal for implementing its strategy using great customer service. These employees will have customers and cause the strategy to 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 cheapest gasoline available. Petrocal's strategy is to focus on the 60% of service-oriented customers. 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 \begin{tabular}{|c|c|c|c|c|} \hline Objectives & Measures & & \begin{tabular}{l} Target \\ erformance \end{tabular} & \begin{tabular}{l} Actual \\ Performance \end{tabular} \\ \hline \multicolumn{5}{|l|}{ Financial Perspective } \\ \hline \multirow[t]{2}{*}{ Increase shareholder value } & Operating-income changes from price recovery & $ & 80,000,000$ & $85,000,000 \\ \hline & Operating-income changes from growth & $ & 60,000,000$ & $62,000,000 \\ \hline \multicolumn{5}{|l|}{ Customer Perspective } \\ \hline Increase market share & Market share of overall gasoline market & & 4% & 3.8% \\ \hline \multicolumn{5}{|c|}{ Internal-Business-Process Perspective } \\ \hline Improve gasoline quality & Quality index & & 92 points & 93 points \\ \hline Improve refinery performance & Refinery-reliability index (\%) & & 91% & 91% \\ \hline Ensure gasoline availability & Product-availability index (\%) & & 99% & 99.5% \\ \hline \multicolumn{5}{|l|}{ Learning-and-Growth Perspective } \\ \hline Increase refinery process capability & \begin{tabular}{l} Percentage of refinery processes with advanced \\ controls \end{tabular} & & 94% & 95% \\ \hline \end{tabular}
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