PROBLEM $1121$ Creating Balanced Scorecards that Support Different Strategies LO$114$The Midwest Consulting Group $($MCG$)$ helps companies build balanced scorecards. As part of itsmarketing efforts, MCG conducts an annual balanced scorecard workshop for prospective clients.As MCGs newest employee, your boss has asked you to participate in this years workshop byexplaining to attendees how a companys strategy determines the measures that are appropriatefor its balanced scorecard. Your boss has provided you with the excerpts below from the annualreports of two current MCG clients. She has asked you to use these excerpts in your portion of theworkshop.Excerpt from Applied Pharmaceuticals annual report:The keys to our business are consistent and timely new product introductions and manufacturingprocess integrity. The new product introduction side of the equation is a function ofresearch and development $($R&D$)$ yield $($e$.$g$.,$ the number of marketable drug compounds createdrelative to the total number of potential compounds pursued$).$ We seek to optimize ourR&D yield and first$-$to$-$market capability by investing in state$-$of$-$the$-$art technology, hiringthe highest possible percentage of the best and the brightest engineers that we pursue, andproviding world$-$class training to those engineers. Manufacturing process integrity is all aboutestablishing world$-$class quality specifications and then relentlessly engaging in preventionand appraisal activities to minimize defect rates. Our customers must have an awareness ofand respect for our brand image of being first to market and first in quality. If we deliver onthis pledge to our customers, then our financial goal of increasing our return on stockholdersequity should take care of itself.Excerpt from Destination Resorts Internationals annual report:Our business succeeds or fails based on the quality of the service that our front$-$line employeesprovide to customers. Therefore, it is imperative that we strive to maintain high employeemorale and minimize employee turnover. In addition, it is critical that we train our employeesto use technology to create one seamless worldwide experience for our repeat customers.Once an employee enters a customer preference $($e$.$g$.,$ provide two extra pillows in the room,deliver fresh brewed coffee to the room at $8$:$00$ A$.$M$.,$ etc.$)$ into our database, our worldwideworkforce strives to ensure that a customer will never need to repeat it at any of our destinationresorts. If we properly train and retain a motivated workforce, we should see continuousimprovement in our percentage of error$-$free repeat customer check$-$ins, the time taken toresolve customer complaints, and our independently assessed room cleanliness. This in turnshould drive improvement in our customer retention, which is the key to meeting our revenuegrowth goals.Required:$1.$ Based on the excerpts above, compare and contrast the strategies of Applied Pharmaceuticalsand Destination Resorts International$\mathrm{.}2.$ Select balanced scorecard measures for each company and link the scorecard measures usingthe framework from Exhibit $115.$ Use arrows to show the causal links between the performancemeasures and show whether the performance measure should increase or decrease overtime. Feel free to create measures that may not be specifically mentioned in the chapter, butnonetheless make sense given the strategic goals of each company$\mathrm{.}3.$ What hypotheses are built into each balanced scorecard? Why do the hypotheses differbetween the two companies?

$02$:$02$ Lun $10$ giu $q,$