Actual Target Performance Performance Objectives Financial Perspective Measures Increase shareholder value Operating-income changes from productivity Operating-income changes from growth $800,000 $2,400,000 $520,000 $250,000 Increase in revenue from new customer acquisition $50,000 $24,000 Customer Perspective Positive customer survey Increase customer satisfaction 65% 70% responses New customers acquired through Increase customer acquisition company sponsored community events 475 350 Internal-Business-Process Perspective Research and development costs as a percentage of revenue Develop innovative services 5% 6% Increase installation efficiency Increase community involvement Installation time per customer Number of new programs with community organizations Number of employees injured in the workplace 5 hours 4.5 hours 12 15 Decrease workplace injuries Learning-and-Growth Perspective Increase employee competence Number of annual training-hours per employee Number of leadership workshops 10 11 Increase leadership skills offered Increase employee safety Percent of employees who have completed safety certification training awareness 100% 95% 2. 1. Was Comtex successful in implementing its strategy in 2017? Explain. 2. Do you agree with Comtex's decision to include measures of developing innovative services (research and development costs) in the internal-business-process perspective of the balanced scorecard? Explain briefly. 3. Is there a cause-and-effect linkage between the measures in the internal-business-process perspective and 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. 4. Why do you think Comtex included balanced scorecard measures relating to employee safety and com- munity engagement? How well is the company doing on these measures? Required

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Balanced scorecard, social performance. Comtex Company provides cable and Internet services in the greater Boston area. There are many competitors that provide similar services. Comtex believes that the key to financial success is to offer a quality service at the lowest cost. Comtex currently spends a significant amount of hours on installation and post-installation support. This is one area that the company has targeted for cost reduction. Comtex’s balanced scorecard for 2017 follows.

Actual
Target
Performance Performance
Objectives
Financial Perspective
Measures
Increase shareholder value
Operating-income changes from
productivity
Operating-income changes from
growth
$800,000
$2,400,000
$520,000
$250,000
Increase in revenue from new
customer acquisition
$50,000
$24,000
Customer Perspective
Positive customer survey
Increase customer satisfaction
65%
70%
responses
New customers acquired through
Increase customer acquisition
company sponsored
community events
475
350
Internal-Business-Process Perspective
Research and development
costs as a percentage
of revenue
Develop innovative services
5%
6%
Increase installation efficiency
Increase community involvement
Installation time per customer
Number of new programs with
community organizations
Number of employees injured
in the workplace
5 hours
4.5 hours
12
15
Decrease workplace injuries
Learning-and-Growth Perspective
Increase employee competence
Number of annual training-hours
per employee
Number of leadership workshops
10
11
Increase leadership skills
offered
Increase employee safety
Percent of employees who have
completed safety certification
training
awareness
100%
95%
2.

1. Was Comtex successful in implementing its strategy in 2017? Explain.
2. Do you agree with Comtex's decision to include measures of developing innovative services (research
and development costs) in the internal-business-process perspective of the balanced scorecard?
Explain briefly.
3. Is there a cause-and-effect linkage between the measures in the internal-business-process perspective
and 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.
4. Why do you think Comtex included balanced scorecard measures relating to employee safety and com-
munity engagement? How well is the company doing on these measures?
Required

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions