A local salon has reached the end of its second quarter of the fiscal year and is evaluating the financial perspective of its balanced scorecard. The salon has decided to make some changes this year to become more competitive in their local market. One of their objectives is to increase their revenues. What is an initiative that management can put in place to achieve this?
A) Increase add-on offerings to customers, and measure total revenues.
B) Increase the number of hours of operation, and measure the increased number of customers per week.
C) Research appropriate pricing models, and measure operating income margin.
D) Serve more customers, and measure the average customer satisfaction rating.

Question

Quizplus · Accepted Answer

This question requires familiarity with balanced scorecards, different perspectives, and the elements that comprise each. Choice A is correct because the initiative of increasing add-on offerings and then measuring the change in total revenues is the most effective way to achieve their objective. The remaining choices might help meet other objectives the company is interested in but not the one specified in the problem.

A Local Salon Has Reached the End of Its Second