Lost Peak ski resort was for many years a small, family-owned resort serving day skiers from nearbytowns. Lost Peak was recently acquired by Western Resorts, a major ski resort operator. The new owners have plans to upgrade the resort into a destination resort for vacationers. As part of this plan, the newowners would like to make major improvements in the Powder 8 Lodge, the resort’s on-the-hill cafeteria.The menu at the lodge is very limited—hamburgers, hot dogs, chili, tuna fish sandwiches, pizzas, frenchfries, and packaged snacks. With little competition, the previous owners of the resort had felt no urgencyto upgrade the food service at the lodge. If skiers want lunch on the mountain, the only alternatives are thePowder 8 Lodge or a brown bag lunch brought from home.As part of the deal when acquiring Lost Peak, Western Resorts agreed to retain all of the currentemployees of the resort. The manager of the lodge, while hardworking and enthusiastic, has very littleexperience in the restaurant business. The manager is responsible for selecting the menu, finding andtraining employees, and overseeing daily operations. The kitchen staff prepare food and wash dishes. Thedining room staff take orders, serve as cashiers, and clean the dining room area.Shortly after taking over Lost Peak, management of Western Resorts held a day-long meeting with allof the employees of the Powder 8 Lodge to discuss the future of the ski resort and the new management’splans for the lodge. At the end of this meeting, management and lodge employees created a balancedscorecard for the lodge that would help guide operations for the coming ski season. Almost everyone whoparticipated in the meeting seemed to be enthusiastic about the scorecard and management’s plans for thelodge.The following performance measures were included on the balanced scorecard for the Powder8 Lodge:a. Weekly Powder 8 Lodge salesb. Weekly Powder 8 Lodge profitc. Number of menu itemsd. Dining area cleanliness as rated by a representative from Western Resorts managemente. Customer satisfaction with menu choices as measured by customer surveysf. Customer satisfaction with service as measured by customer surveysg. Average time to take an orderh. Average time to prepare an orderi. Percentage of kitchen staff completing basic cooking course at the local community collegej. Percentage of dining room staff completing basic hospitality course at the local community college(Western Resorts will pay for the costs of staff attending courses at the local community college.)Required:1. Using the above performance measures, construct a balanced scorecard for the Powder 8 Lodge. UseExhibit 10–8 as a guide. Use arrows to show causal links and indicate with a or whether theperformance measure should increase or decrease.2. What hypotheses are built into the balanced scorecard for the Powder 8 Lodge? Which of thesehypotheses do you believe are most questionable? Why?3. How will management know if one of the hypotheses underlying the balanced scorecard is false?
Lost Peak ski resort was for many years a small, family-owned resort serving day skiers from nearby
towns. Lost Peak was recently acquired by Western Resorts, a major ski 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 Powder 8 Lodge, the resort’s on-the-hill cafeteria.
The menu at the lodge is very limited—hamburgers, hot dogs, chili, tuna fish sandwiches, pizzas, french
fries, 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 skiers want lunch on the mountain, the only alternatives are the
Powder 8 Lodge or a brown bag lunch brought from home.
As part of the deal when acquiring Lost Peak, Western Resorts agreed to retain all of the current
employees of the resort. The manager of the lodge, 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 Lost Peak, management of Western Resorts held a day-long meeting with all
of the employees of the Powder 8 Lodge to discuss the future of the ski resort and the new management’s
plans for the lodge. At the end of this meeting, management and lodge employees created a balanced
scorecard for the lodge that would help guide operations for the coming ski season. Almost everyone who
participated in the meeting seemed to be enthusiastic about the scorecard and management’s plans for the
lodge.
The following performance measures were included on the balanced scorecard for the Powder
8 Lodge:
a. Weekly Powder 8 Lodge sales
b. Weekly Powder 8 Lodge profit
c. Number of menu items
d. Dining area cleanliness as rated by a representative from Western Resorts management
e. Customer satisfaction with menu choices as measured by customer surveys
f. Customer satisfaction with service as measured by customer surveys
g. Average time to take an order
h. Average time to prepare an order
i. Percentage of kitchen staff completing basic cooking course at the local community college
j. Percentage of dining room staff completing basic hospitality course at the local community college
(Western Resorts will pay for the costs of staff attending courses at the local community college.)
Required:
1. Using the above performance measures, construct a balanced scorecard for the Powder 8 Lodge. Use
Exhibit 10–8 as a guide. Use arrows to show causal links and indicate with a or whether the
performance measure should increase or decrease.
2. What hypotheses are built into the balanced scorecard for the Powder 8 Lodge? Which of these
hypotheses do you believe are most questionable? Why?
3. How will management know if one of the hypotheses underlying the balanced scorecard is false?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
