Question 5 (20 marks) Read the scenario below and answer the questions that follow: A small town with a population of 35 000 has a community library. The nearest alternative library is 20 kilometers away. A further 20 000 people live within a 15-kilometre radius of the town. Of these, 5 000 people live nearer to the alternative library. The library has 25 000 registered users and, on average, each of the registered users borrows two books and one DVD every week. The library has 125 000 books and 50 000 DVDs on its inventory lists, though this is constantly changing as old items are removed and new items are added. To attract interest from a large range of potential users, the library offers a variety of types of books and DVDs; for some of the more popular items it has more than one copy. The library does not charge a fee to its users; it is funded by donations and by the government. However, it does need to measure its performance and is considering the use of a Balanced Scorecard. Required: 5.1 Explain the key features of the Balanced Scorecard approach to performance measurement. (6) 5.2 State two (2) perspectives of the Balanced Scorecard and, for each perspective, recommend, with reasons, one (1) performance measure that could be used to measure the performance of the library. (6) 5.3 Explain why non-financial performance measures are important in the service sector. (8)