Question $3($CLO $1\mathrm{.}2)$LunaTech Inc. manufactures a variety of high$-$end $3$D printers in a highly automated facility with significant fixed costs. The market for $3$D printers is competitive, with multiple companies offering comparable features and prices. LunaTech believes that achieving high$-$quality products at lower costs is crucial for meeting its target profitability. For $2022,$ the company aimed to enhance quality and lower costs by improving manufacturing yields and reducing defects. LunaTech planned to train its workers and empower them to take proactive steps in quality control. At present, a substantial portion of LunaTech's production capacity is used to manufacture defective products that cannot be sold. The company expects that higher yields will decrease the capacity needed to manufacture sellable units. However, LunaTech does not anticipate that simply improving manufacturing quality will lead to reduced costs, as many of its costs are fixed. To reduce fixed costs per unit, LunaTech could either lay off employees and sell equipment, or it could use the additional capacity to produce and sell more of its current products or upgraded versions of its products.Balanced Scorecard for Fiscal Year $2021$:Objectives MeasuresTargetPerformanceActualPerformanceFinancial PerspectiveIncrease shareholder valueOperating$-$income changes fromproductivity improvementsOperating$-$income changes fromgrowth$$1,200,000$$$1,700,000$$$500,000$$$700,000$Customer PerspectiveIncrease market shareMarket share in color laserprinters$6\%5\mathrm{.}1\%$Internal$-$Business$-$Process PerspectiveImprove manufacturing qualityReduce delivery time to customersYieldOrder$-$delivery time$85\%25$ days$88\%22$ daysLearning$-$and$-$Growth PerspectiveDevelop process skillsEnhance information$-$system capabilitiesPercentage of employeestrained in process and qualitymanagementPercentage of manufacturing processes with real$-$time feedback$93\%90\%95\%88\%$Required:a$.$Was LunaTech successful in implementing its strategy in $2020?$ Explain.From a financial perspective, Luna Tech set out to improve operating income through productivity and growth, but it did not meet its target.It achieved productivity improvements of only $$500,000,$ compared to a target of $$1,200,000,$ and growth of $$700,000,$ well below the target of $$1,700,000.$This suggests that the strategy did not deliver the financial results expected. From a customer perspective, the company set out to increase its color laser printer market share to $6\%,$ but it only reached $5\mathrm{.}1\%.$ There was some progress, but the target was not fully met. Third, from an internal business process perspective, Luna Tech excelled at improving its manufacturing processes. It exceeded its yield target, achieving $88\%$ instead of $85\%,$ and reduced its order lead time to $22$ days, better than the target of $25$ days. These achievements demonstrate progress in operational efficiency and product quality, which were central to the strategy, and our ultimate goal is to learn and grow. The company exceeded its employee training target by $95\%$ versus $93\%,$ and came close to its real$-$time feedback target by $88\%$ versus $90\%.$ These results highlight successful investments in employee development and technology improvements.Conclusion:LunaTechs performance in $2021$ was driven by operational improvements and employee development, but these improvements did not fully translate into higher revenues or profitability.To better execute on its strategy,LunaTech must focus on leveraging its operational strengths to drive better financial results and expand its market presence.b$.$Is LunaTechs balanced scorecard useful in helping the company understand why it did not reach its target market share in $2020?$ If it is$,$ explain why. If it is not, explain what other measures you might want to add and why?c$.$ What problems, if any, do you see in LunaTech improving quality and significantly downsizing to eliminate unused capacity?$1.$Required