ACC 4113 DECISION MAKING AND CONTROL
Group exercise on BSC
Bayu Resort was for many years, a family-owned resort located on Mount Kinabalu, serving
mountain climbers who come from all over Malaysia. Bayu Resort was recently acquired by
Palma Resorts, a major resort operator. The new owners have plans to upgrade the resort into
a destination resort for vacationers. As part of this plan, the new owners would like to make
major improvements in the Bayu Station Cafe, the resort’s on-the-hill cafeteria. The menu at
the lodge is very limited – beef burgers, hot dogs, tuna and egg sandwiches, fruit slices and
packaged snacks. With little competition, the previous owners of the resort had felt no
urgency to upgrade the food service at the lodge. If mountain climbers want lunch on the
mountain, the only alternatives are the Turus Station Lodge or a packed lunch bought
elsewhere and brought with them.
As part of the deal when acquiring Bayu Resort, Palma Resort agreed to retain all of the
current employees of the resort. The manager of the cafe, while hardworking and
enthusiastic, has very little experience in the restaurant business. The manager is responsible
for selecting the menu, finding and training employees, and overseeing daily operations. The
kitchen staff prepare food and wash dishes. The dining room staff take orders, serve as
cashiers, and clean the dining room area.
Shortly after taking over Bayu Resort, management of Palma Resort held a day-long meeting
with all the employees of the Bayu Station Café to discuss the future of the resort and the new
management’s plans for the cafeteria. At the end of this meeting, management and cafeteria
employees created a balanced scorecard for the cafeteria that would help guide operations for
the coming holiday season. Almost everyone who participated in the meeting seemed to be
enthusiastic about the scorecard and management’s plans for the cafeteria.
The following performance measures were included on the balanced scorecard for the Bayu
Station Café:
Weekly cafeteria sales
Weekly cafeteria profit
Number of menu items
Dining area cleanliness as rated by a representative from Palma Resort
management
Customer satisfaction with menu choices as measured by customer surveys
Average time to take an order
Average time to prepare an order
% of kitchen staff completing basic cooking course at the local community college
% of dining room staff completing basic hospitality course at the local community
college
Palma Resort will pay for the costs of staff attending courses at the local community college.
Required:
a. Identify the major problem faced by the Bayu Station Café.
(2 marks)
b. Using the above performance measures, construct a balanced scorecard for the
Bayu Station Café by assigning each measure to the relevant perspective of the
balanced scorecard. For each performance measure, develop one target. Also
identify one initiative for each perspective. Use arrows to show causal links
between the performance measures.
(14 marks)
c. Would the constructed balanced scorecard assist the cafeteria in resolving its
major problem identified in part (a) above?
(4 marks)
[Total: 20 marks]
