Question

Question 1 (15 marks) 1. Vic Corporation refines petrol and sells it through its own petrol gas stations. On the basis of market research, Vic Corporation determines that 60% of the overall petrol market consists of "service-oriented customers," medium- to high-income individuals who are willing to pay a higher price for gas if the gas stations can provide excellent customer service, such as a clean facility, a convenience store, friendly employees, a quick turnaround, the ability to pay by credit card, and high-octane premium petrol. The remaining 40% of the overall market are "price shoppers" who look to buy the cheapest petrol available. Vic Corporation's strategy is to focus on the 60% of service-oriented customers. Vic Corporation's balanced Scorecard for 2018 follows. For brevity, the initiatives taken under each objective are omitted. Target Actual Objectives Measures Performance Performance Financial Perspective Increase shareholder value Operating-income changes from price recovery $80,000,000 $85,000,000 Operating-income changes from growth $60,000,000 $62,000,000 Customer Perspective Increase market share Market share of overall gasoline market 4% 3.8% Internal-Business-Process 13320 OH2O HDD 18