Explain the differences between financial and nonfinancial performance measures and give two examples of each.
16.2 Identify four potential perspectives for a balanced scorecard and explain how they are related.
16.3 Allied Trucking moves produce from farms to markets. Its managers decided to implement a balanced scorecard around
the company’s vision statement: “We aim to be the industry leader in cost–effective and timely delivery of produce.”
Provide two potential strategic objectives and related measures for each of the four perspectives for the balanced scorecard for Allied Trucking.
16.4 Explain what core competencies are. How do they relate to organizational strategies?
16.5 Suppose that a car dealership decided it would no longer compensate employees with sales commissions, but instead pay
a salary with a bonus for high customer satisfaction ratings. What problems would you foresee from the dealership’s
financial perspective?
16.6 Describe the implementation process for the balanced scorecard.
16.7 What is strategic decision making? What role does it play in the balanced scorecard?
16.8 Search the Web to locate current information about the vision, mission, core values, or similar attributes
of McDonald’s and Wendy’s. (For hints about where to find this information, go to www.wiley.com/college/eldenburg.)
List the similarities and differences between McDonald’s and Wendy’s vision, mission, and core values.
16.9 Pick two public companies, go to their Web sites, and identify their major strategies. Pick one of these companies and go
to the Web site of a competitor in the same industry. For example, if you chose Staples, you might go to the Web site
of Office Max. Now compare the strategies of both companies, listing any similarities and differences. (For hints about
where to find this type of information, go to www.wiley.com/college/eldenburg.)
16.10 Explain why demand may increase for relevant and useful information in the future. What professional skills will help you
meet that need?
16.11 Explain why you will need to continuously learn new accounting techniques, as well as develop in–depth knowledge
about industries within which you work.
16.12 If managers choose the nonfinancial measures upon which they will be evaluated, they may be biased in their choices.
Explain and give an example of such a bias.
16.13 If it is difficult to accurately measure customer satisfaction because only customers who purchase items are surveyed,
should the measure be assigned more or less weight than a more accurate customer–related statistic such as market
share? Explain.
16.14 What is a performance target and why is it important to use them with a balanced scorecard?
16.15 What is a strategy map and how does it relate to the balanced scorecard?
