Reference no: EM132640154

Ombrelloni Felici (OF) has a division of customised umbrellas called Ombrelli Pazzi. The marketing and creative team receive from the customer the draft concept of each new set of customised umbrellas to be manufactured. An outsourced team of designers create the prototypes of the umbrellas based on the concept prepared by the marketing and creative team. The prototypes of the umbrellas are then assessed by the marketing and creative team following the guidelines set by the customer. If the customer approves the prototype the design team has to prepare the setup for the production line. The production line is outsourced in a warehouse located in a Southeast Asian country and shipped to Australia. Before marketing and sales begin, samples of the customised umbrellas are subject to strenuous quality testing following the international safety standards for umbrellas. Once the new set of customised umbrellas is deemed safe the marketing and sales of the product begins. Currently, OF does not follow up customer satisfaction. Now OF is considering implementing a Balanced Scorecard (BSC) for the Ombrelli Pazzi division, focussing on the performance of each set of customised umbrellas.

Required

Question a) Recommend one measure for each one of the four perspectives of the BSC for the Ombrelli Pazzi division and justify why you have selected such measures.

Question b) The management at OF is also keen on rewarding the division manager based on how the division performs among the four measures you have recommended. However, there is a growing concern evaluating the division manager performance based on the four measures you have proposed will make the performance evaluation too subjective. Using the definition of subjectivity in performance evaluation provided in Castro (2017, p. 532)2 explain how, applied to the Ombrelli Pazzi division, subjectivity in performance evaluation can be mitigated.