Fitzgerald and Moon developed a framework for the design and analysis of performance management systems, particularly within the context of service industries. They based their analysis on three (3) building blocks, which have become known as the Building Block Model.

Required:

Discuss the Building Block Model as propounded by Fitzgerald and Moon. Please present your answer diagrammatically where applicable, clearly presenting and explaining into detail, all aspects of the model.

3B.

Discuss three (3) objectives of a Transfer Pricing System.