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问答题(c) Discuss the difficulties of measuring qualitative factors of performance, suggesting appropriate solutions for BLA.(7 marks)

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问答题2.Victoria-YeelandLogistics(Victoria)isalogisticssupportbusiness,whichoperatesafleetoflorriestodeliverpackagesofgoodsonbehalfofitscustomerswithinthecountryofYeeland.Victoriacollectspackagesfromitscustomers’manufacturingsitesorfromthecustomers’portofimportationanddeliverstothefinaluserofthegoods.ThelorriesarerunandmaintainedfromasetofdepotsspreadthroughoutYeeland.TheoverallobjectiveofVictoriaistomaximiseshareholderwealth.ThedeliverybusinessinYeelandisdominatedbytwointernationalcompaniesandoneotherdomesticbusinessandprofitmarginsareextremelytight.Themarketissaturatedbytheselargeoperatorsandanumberofsmalleroperators.ThecostbaseofVictoriaisdominatedbystaffandfuel,withfuelpricesbeinghighlyvolatileinthelastfewyears.InordertoimproveperformancemeasurementandmanagementatVictoria,thechieffinancialofficer(CFO)planstousethebalancedscorecard(BSC).However,shehasbeenpulledawayfromthisprojectinordertodealwithanissuewithrefinancingthebusiness’principallendingfacility.TheCFOhasalreadyidentifiedsomesuitablemetricsbutneedsyou,asherassistant,tocompleteherworkandaddressanypotentialquestionswhichmightarisewhenshemakesherpresentationontheBSCtotheboard.TheCFOhascompletedtheidentificationofmetricsforthreeoftheperspectives(Appendix1)buthasyettocompletetheworkonthemetricsforthecustomerperspective.ThisshouldbedoneusingthedatagiveninAppendix2.Additionally,twoissueshavearisenintherewardmanagementsystematVictoria,oneinrelationtoseniormanagementandtheotherforoperationalmanagers.Currently,seniormanagementgetsafixedsalarysupplementedbyanannualbonusawardedbytheboard.Shareholdershavebeencomplainingthatthesebonusesarenotsuitable.Theoperationalmanagersalsogetbonusesbasedontheirperformanceasassessedbytheirmanagementsuperiors.Theoperationalmanagersareunhappywiththesystem.Inordertoaddressthis,ithasbeensuggestedthattheyshouldbeinvolvedinbonustargetsettingasotherwisethereisasenseofdemotivationfromsuchasystem.TheCFOwantsanevaluationofthissystemofrewardsinlightoftheintroductionoftheBSCandbestpractice.Required:

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问答题1.MerklandSportswear(MS)isthemarketleaderinsportswearinCeeland,sellingavarietyofsportswearproductsunderitsownwell-knownbrand.Itisprimarilyaproductdevelopmentandmarketingbusinessasitcontractsoutallofitsmanufacturingtothirdpartiesaroundtheworldanditmostlysellsitsproductsthroughthird-partyretailers.IthasonlyonestorewhichislocatedinthecapitalcityofCeeland.ThepurposeofthisstoreistoactasacentreforitsmarketingactivitiesandtobeatangiblerepresentationoftheMSbrand.However,themainmarketingactivityforMSistherecruitmentandpromotionofstarsportsmenandwomenasMSbrandambassadors.MStriestohavethemostwell-knownsportsstarineachofthe10mostpopularsportsinCeelandasanambassador.YouareaperformancemanagementadvisortoMS,broughtintothecompanybythechiefexecutiveofficer(CEO)tohelptheboardwithanumberofissues.ThefirstareawhichtheboardofMSrequiresyourinputisinareviewoftheexistingperformancedashboardforMS(Appendix1).ThedashboardisdeliberatelykeptfocusedasitisforboarduseandtheCEOhasindicatedthatthethreeperformanceheadingsof‘financial,designandbrand’willbekeptatthistime.Theboardhasacceptedthattheremayneedtobeuptotwometricsforeachof‘brand’and‘design’buttheywanttokeepthenumberoffinancialmetricsatthree.Themissionstatementofthebusinessisdesignedtobebroadlyappealing.Itis‘toinspireCeelanderstocompete’.Fromabusinessperspective,theaimsaremorefocused,MSaimstogrowasabusinessandtomaximiseshareholderwealth.TheCEOfurtherclarifiedthebroadstrategytoachievetheseaimssaying,‘Wewanttoinspirecompetitionnotjustinourcustomersbutalsowithinthecompany,toseekourgreatestcompetitiveadvantage.WewillachievethisbycreatinginnovativeproductswhichprovidereducedriskofinjuryandenhancedsportingperformancesupportedbythebestmarketingoperationinCeeland.Inordertoassistinprovidingmoredetailedstrategiestoachievetheseaims,theboardhasinstitutedareviewofthecompetitivepositionofMSbycommissioningaSWOTanalysis(Appendix2).TheCEOhasaskedthatyourfirsttaskbeareviewofthecurrentdashboardmetrics(Appendix1).YoushouldthenreviewtheSWOTanalysistosuggestchangestothedashboardmetricswithintheconstraintswhichtheCEOhasoutlined.Also,youaregivendetailsonarecentnewdevelopmentinthemarket.NushSportswear,oneofthemajorcompetitorsofMS,hasrecentlysufferedascandalwhichhasbeenwidelyreported.AninvestigativereporterdiscoveredthatoneofthesupplierswhomanufacturedsportsshoesforNushhadbeenusingchildlabour.Thecountryinwhichthemanufacturerworkedhadrulesprohibitingchildlabour,butenforcementwasveryweak.ThisstoryhasbeenwidelycoveredinthemediaandhasledtoconsumerboycottsandareviewbytheCeelandbusinessregulatorintoNush’ssourcingpolicies.Ithasbeendiscoveredthatthisiscommonpracticeinthesportsfootwearbusinesswheremanufacturingisoutsourcedtosuchcountries.MS’shareholdershavereactedwithalarmtothepotentialdamagethatthiscoulddotoMS’brand.Theyhaveaskedtheboardtoconsiderchangingtheirpolicyofoutsourcingfootwearmanufacture.Theboardisconsideringtwoalternativeresponses:1.Reviewandensurethatalloutsourcedfootwearmanufacturecomplieswithappropriateemploymenttermsandconditions(wherenecessarymanufacturingwouldmovetothird-partycompaniesincountrieswithappropriateregulationandenforcement);or2.CreateamanufacturingoperationforMSinordertohavefullcontrolofoperations.Inresponse1,thereviewofexistingthird-partymanufacturersisbeingperformedbyateamfromtheprocurementdepartment.Theyhavealsoconsideredtheimpactofmovingallfootwearsourcingtomorestrictlyregulatedenvironments.TheresultsofthisinvestigationaregiveninAppendix3andtheboardwantsanevaluationofthequalitativeandquantitativeimpactofthisresponse.Inresponse2,theboardisconsideringsettingupafactoryforthemanufactureofallMSfootwear.TheywanttounderstandtheimpactofthisonMS’existingperformancemetrics.First,theyneedaforecastoftheprofitfromthefactoryastherearethreedistincteconomicscenariosunderwhichitmightoperate(seeAppendix4fordetails).Second,theboardwantstoknowhowthenewfactorywillimpactontheexistingperformancedashboard.However,sincetheprobabilitiesoftheseeconomicscenariosareunderdebate,theboardhassaidthattheywantthisworktobeindependentoftheresultsoftheprofitcalculationfromAppendix4.Therefore,theboardwantsyoutouseanestimateof$103mprofitbeforeinterestandtaxfromthenewfactorytoevaluatetheimpactofthenewfactoryonthedashboard.(Thisestimateisbeforeproductdevelopmentandmarketingcostsasitonlyrepresentsthemanufacturingoperationatthefactory.)Finally,theconsultantwhodidtheSWOTanalysishasmentionedtotheboardthatiftheyarethinkingofreviewingtheirexistingstrategies,thentheyshouldconsiderusingthevaluechaintosecurecompetitiveadvantage.TheCEOthinksthatyoushouldassesstheimplicationsofusingthevaluechainfortheperformancemanagementofMS.(AnoutlineofthevaluechainisgiveninAppendix5.)Required:WriteareporttotheboardofMSto:

问答题(c) Give four detailed recommendations to reduce the probability of failure of Culam, providing suitablejustifications for your advice.(8 marks)