Airlines is a large internet service provider in Australia and NZ. It provides internet services...
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Accounting
Airlines is a large internet service provider in Australia and NZ. It provides internet services to regional areas of Australia and NZ through its satellites in the space. With a significant amount of people moving to these regional areas, the company has enjoyed a substantial growth in recent years. The company has a primary focus on financial performance and short-term profitability, and mainly uses financial measures to evaluate its business performance.
However, recently the company is experiencing a growth bottleneck, with a slow uptake in new customers signing up for the services, as well as existing customers cancelling contracts. A discussion with Airlines' management indicates the following issues:
1. Many of the regional areas are hard to reach, which creates significant logistic issues in relation to transporting hardware to these remote regions. Operational staff have limited understanding of these logistic challenges. Unfortunately, there seems to be insufficient organizational processes in place to tackle these logistic challenges.
2. You understand that the firm offers different internet plans with varying speeds and data allowances to customers. Given the focus on financial performance, sales personnel are encouraged to push high speed and large data allowance offerings, which results in customers overpaying for what they actually need.
3. You also understand that there have been increasing complaints on installation services, with customers complaining about unprofessional services. In some cases, the junction boxes were not properly sealed with wiring fully exposed. This poses a significant risk to customer safety.
Airlines Ltd. is seeking to develop a Balanced Scorecard that can be used to monitor and manage the performance of its business in light of the information above.
Required:
You are asked to develop one objective for each of the four perspectives of the balanced scorecard, and one related performance measure for each objective that can be used to evaluate performance. In addition, you need to explain the interrelations between the objectives. Specifically, you need to explain how achieving these related objectives will lead to better performance over the long term.
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