$19\mathrm{.}32$ Evaluate balanced scorecard design

Frieda's Fizz brews specialty soft drinks, including ginger beer and other flavours. Its vision is $\text{'}$To proudly produce and sell extraordinarily smooth, rich and delicious soft drinks to satisfy

kids of all ages'. The entity has a reputation for high quality and unique flavour, enabling it to sell soft drinks at a premium price to gourmet grocery stores in the local area. The entity's

managers plan to expand the business to other geographic regions, but they want to ensure that they maintain high quality as the entity grows. They have decided to implement a

balanced scorecard, and they have chosen the following balanced scorecard measures.

Financial perspective:

Breakdown of manufacturing cost per case: ingredients, direct labour, packaging materials and overhead

Operating profit per case

Return on investment

Customer perspective

Number of customer complaints relating to taste, freshness, package integrity, appearance and foreign objects

Quality index $($an internal measure of manufacturing quality, including microbiology and chemistry$)$

Percentage sales growth

Internal business process perspective:

Ratio of plant production hours to total available time

Throughput $($number of cases packaged$)$

Waste and scrap as a percentage of total production cost

Learning and growth perspective:

Number of work$-$related injuries

Number of training hours per employee

Number of community volunteer hours per employee

Required

$($a$)$ Explain why uncertainties exist about the best balanced scorecard measures for Frieda's Fizz. $($Do not discuss any of the measures already listed. Instead, focus on why any set of

measures might not provide ideal information and on why the managers cannot know with certainty which set of measures is best.$)$

$($b$)$ For the balanced scorecard perspective:

$($i$)$ Describe the strengths and weaknesses of the measures chosen for that category.

$($ii$)$ Reach a conclusion about the reasonableness of the set of balanced scorecard measures for that category.

$($c$)$ What are the pros and cons of implementing a balanced scorecard?

$($d$)$ How valuable do you think the balanced scorecard will be in helping the managers of Frieda's Fizz meet its vision? Explain.

$($e$)$ The managers of Frieda's Fizz want your evaluation of their proposed balanced scorecard. Use the information you learned from the preceding analyses to write a memo to the

managers presenting vour evaluation of: