Question
The City of McAllen, Texas, is embarking on an aggressive campaign to woo small businesses into the City. The Citys campaign initiatives include providing small
The City of McAllen, Texas, is embarking on an aggressive campaign to woo small businesses into the City. The Citys campaign initiatives include providing small business start-ups with a variety of incentives. To this end, Tom and Tina decided to open a Frozen-Yogurt Shop in the Nolana Area of the City. This business thrives so well that Tom and Tina agreed to expand its business to five additional locations across the City, prominently including the McAllen Downtown area. These entrepreneurs employed a manager named Yourself to manage the Downtown location. An important question that arose for Tom and Tina is the performance measures for managers across their business locations in McAllen. Specifically, they are considering two different sets of performances measure for Yourself. The first set would evaluate Yourself based on the cleanliness of the Downtown shop and the customer service provided to every customer walking into that location. The second set will use accounting numbers, including the profit of the location in Downtown.
Tom and Tina decide to hire your Consulting Company for advice on the pro and cons of each set of performance measures. As the Head of Management Planning and Control Advisory division, you report directly Diana Lewis, who is the Chief Executive Advisor of your company. She assigned Tom and Tinas consulting assignment to you. As usual, she wanted your responses in a memo. In that memo, you are required to do only two things. These are to:
- Reflect on each set of performance measures, and
- Discuss the pros and cons of each set of performance measures.
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