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Perspective Objective OutcomesMeasures

2008 2009

FinancialPerformances

Achieve a good returnon capital for its

investors

Success

ROCE

13.4% 10.6%

Profit Margin

41.5% 35.4%

ExpansionTotal Restaurant

12 16

CustomerServices

Delighting thecustomers

Excellent Service

Average peak time waiting time(minutes)

14 22

Responsiveness

Number of new food linesintroduced

17 32

Turnover attributable to localdelivery business per restaurant

$70833 $109375

Internal ProcessExcel in critical

operationsProcesss Quality

Percentage of total cost of food

wasted to turnover

7.6% 9.5%

Number of letters of complaintreceived per restaurant

72 89

Total refunds per customer$1.72 $2.47

Learning &Growth

Empoweringemployees

Employees skills

Staff Training cost per staff

$2462 $2935

Average restaurant daily customercapacity

130 160

Total staff per restaurant

11 11.5

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Financial success whilst balancing expansion

In spite of the expansion carried out during current Gear (2009), the company has failed toachieve a good return on capital for its investors, because ROCE has fallen from 13.4% to10.6%. Profit margin has fallen significantly from 41.5% to 35.4% indicating that overall

expenses may have risen coupled with ineffectiveness of marketing and sales strategies.

Excellent customer service and responsiveness to changing customer requirements

The financial performance of the company was not underpinned by the drivers of futureperformance. Customers would prefer short waiting time especially during peak time but suchtime has increased from 14 minutes to 22 minutes. Customers experienced more food linesintroduced by the company which has increased from 17 new items to 32, and also experiencinga new service introduced in the local delivery business.

Excelling in critical operations

In order to establish customer loyalty, it is necessary to excel in business operations. In genericterms management need to focus on process quality and process cycle time. However, thecompanys process quality is called into question. The percentage of total cost of food wasted toturnover has increased significantly from 7.61 to 9.5% on year to year basis. Also, the numberof letters of complaint received per restaurant has increased from 72 to 89. As a result, the totalrefunds per customer have increased from $1.72 to $2.47. Management need to benchmark itsoperations against best practices in the industry.

Empowering employees

The new age companies compete in terms of building capabilities and innovation. Investmentsin employees skills, IT systems and organisational procedures would be paramount. Thecompany has moved forward in the right direction by increasing the training cost per staff from$2462 to $2925. Also, it has increased more staff per restaurant. As a result, the company hasgreater capacity to serve customers as shown by the average restaurant daily customer capacity.

Conclusion

Due to greater capabilities in employees skills, management should focus on rectifyingprevailing problems in process quality. By overcoming such short-comings, the company could

improve in establishing customer loyalty which in turn could significantly improved futurefinancial performance, thus meeting its main objective of providing good return on capital to itsinvestors.

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