Evaluating the appropriateness of performance measures
Lo-End Inc., a chain of gasoline service stations, has a strategy of charging discount prices for its gasoline by providing very little service and charging relatively high prices for the goods in its attached mini-market. Its balanced scorecard performance measures include: Increase in operating income through cost reduction (Financial);market share in the overall gasolinemarket (Customer); wait-time at the pump (Internal Business Processes); and store manager and employee bonus based on number of customers served (Learning and Growth). Indicate whether each of these performance measures is appropriate, given Lo-End’s strategy.
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