The Primary Lodge Company operate a chain of hotels across the UK. They believe they offer high quality rooms and excellent service to their guests. Due to the location of their hotels within the major cities, the majority of their guests have been business people but, due to Covid 19, their business had declined rapidly during 2020/2021. Many staff were furloughed and some staff were made redundant. Every effort was made to keep variable costs to a minimum. Fixed overheads have remained fairly constant over the period. There has been little investment made within the hotels over the period 2020/21 The Primary Lodge Co have a standard price per room within each of their hotels however they also offer some rooms at discounted prices via websites in order to improve the occupancy. The current average rate per room is 180 per night which is the fee for room only. They offer breakfast for an additional fee and have a bar which opens every evening offering alcoholic and non-alcoholic refreshments. Most guests make use of these facilities. The following financial data is available: 2019 (before effects of Covid 19) 2020 2021 Average rate per room 165 170 180 Overall operating profit margin 18% 15% 13.8% Operating profit margin on food and drink 45% 44% 43% ROCE 49% 48% 40% Non-Financial Information: Prior to the Covid 19 situation, occupancy rates were at an average of 85%. Due to lockdown it fell to 20% and is currently at 45%. The budgeted occupancy rate for the current year is 80%. During 2019, the chain of hotels employed over 500 staff. During 2020 and the early part of 2021, 420 staff were furloughed. A number of redundancies took place during 2021 and there are now 275 staff employed. All customers are requested to complete a customer satisfaction survey. Before Covid 19, their score was an average of 4.6 with 5 being excellent Currently it is 3.9. Comments made on the survey include: Our room looked as if it was in need of decorating There was mould in the bathroom The mattress was really uncomfortable The reading lamp did not work The website promises excellent service, we did not receive excellent service Service has declined since the last visit Action needs to be taken in order to improve performance to pre Covid 19 levels and one action being considered by the management team is the introduction of the Balanced Scorecard approach. Explain the theory behind the Balanced Scorecard approach and the four perspectives used.