Problem 1-30. Page: 31 Ans1.

The balance Score card is a management Tool that provides stakeholders with a comprehensive measure of how the organisation is progressing towards the achievement of its strategic goals. Organisation often has a gap between strategy and action. Balance Score card is bridge to close this gap. Typical Key elements of Balance Score cards are mainly 4. a. Financial perspective Growth Profitability Share holder value Customer perspective Price Service Quality Internal Perspective Cycle Time Productivity Cost Learning and Growth New Skills Continuous improvement Intellectual Asset

b.

c.

d.

Ans2. Members of Lopezs Committee to prepare Airline Balance Score Card. a. b. c. d. Ans3. As per key elements specified the measurement would be, Financial - Measurements. Load factor Profitability Revenue Costs Marketing Operation(Ground Staff and crew) Human Resource Finance

Customer Measurements Competitive price Flight on time Customer satisfaction survey Customer Retention Request fulfillment time

Internal Measurements On ground time

On time departure.

Learning Measurements Ans4. In technical terms, Passenger load factor is defined as the number of passenger kilometers travelled as a percentage of the total seatKilometers available. So if an airline with 100 seats flies a distance of 1000 kilometers, the available seat kilometers are 100000. If 60 passengers travel the entire distance, the passenger- kilometers travelled is 60000 and the PLF is .6. This is a measure of capacity utilization. As airlines frequently have heavy fixed costs and are capital intensive, the efficiency with which assets are used is crucially important. This is an important efficiency measure, but it does not consider the pricing and the profitability at which the capacity is sold.It also implicitly assumes that the airlines Fleet is fully utilized in terms of number of kilometers flown. Ground crew alignment Revenue per employee Employee satisfaction Employee personal goal alignment (%)