University of the South Pacific

Faculty of Business and

Economics
School of Accounting and
Finance
AF201
Semester 2: Assignment Two

Name: Nishita Lin

Student ID: S11164035
Campus: Laucala Campus

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1). At the heart of every dynamic growing economy, is the strange beast referred to as an
“entrepreneur”. Fiji’s economic future depends on having enough entrepreneurs either locally or
internationally based, whose efforts are essential in order for the economy to grow healthier. In
the olden days, the manufacturer and supply of bread was mainly controlled by many Chinese
bakeries scattered throughout Fiji. Back then, bread wasn’t quite the staple food that it has
become but ever since, Dr Mere Saminsoni who is known to be one of Fiji’s well known
entrepreneur ventured into the bread making process and created her own bread company is now
seen as Fiji’s largest chain of bakeries that we call the “Hot Bread Kitchen” that has been in
operations for over the last 30 years. Like any other kind of business, Hot Bread Kitchen was
born out of an idea. Hot Bread Kitchen first started in 1982, whose on-going quality till today is
highly recognized by the public.

Due to the consistent fulfilment of Hot Bread Kitchen’s mission that includes:

 To be a modern and pre-eminent Pacific company

 Create economic opportunities through careers through food
 Provide a safe, enjoyable shopping experience and a hygienic bakery
 Provide best quality products at all times
 Promote bio-degradable plastics to address climate change and a sustainable environment

has led to an expansion in the number of outlets here in Fiji. The Hot Bread Kitchen has
significantly grown whereby it now has a total of 26 outlets throughout Fiji that employs over
500 staff of which more than 50% of the staff force consist of women. Due to its well-known
products, Hot Bread Kitchen is seen as Fiji’s popular bakery that continues to be successful,
growing into a chain of shops throughout Fiji.

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2).

Performance Measures
Objectives Lad Indicators Lead Indicators
1). Financial
 Improve profitability Product profitability (ROI) Number of new customers on
a monthly basis
 Increase in cash flow Cost cutting (cash budget) Number of new HBK outlets
opened

2). Customer
 Increase customer Customer lifetime value Number of new products
satisfaction. produced monthly.
 Timeliness Number of customers On-time delivery of products
retained

3). Internal Business

Processes
 Improve production Number of products currently Production cycle time
process under the development
 Improve the quality State of the art facilities Number of new facilities
of facilities provided purchased

4). Learning and Growing

 Improve knowledge Employee development plans Time spent on developing
& skills of employees employee programs
in operations

 Maintain a Employee survey Improve- employee’s

motivated &
prepared workforce working conditions

5). Sustainability.
 Practice using eco- Alternative forms of Improved brand name
friendly packages packaging

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  Be eco-conscious Employ more eco-friendly Incorporate being green in the
mission of the business
ways

3). The balance scorecard is a strategic approach and performance management system that
enables organizations to transfer a company’s vision and strategy into implementation which is
classified under four perspectives that is: financial, customer, internal business processes and
leaning and growing. Performance remuneration of employees using the BSC has two key
advantages. Firstly, it empowers the employees to have a clear understanding of what the

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company’s objectives. This will enable them to communicate and contribute in the
organizational system through their thoughts and actions. Secondly, is the possibility to serve as
a balanced tool of remuneration.

In most organizations, the performance element of salary or wages depends on a greater number
of criteria which can be derived from balance scorecard method. The BSC is a sophisticated tool
that enables a linkage between the reward system and performance as it indicates the different
department expectations without losing focus in their respective roles in the overall company’s
strategy and success.

The highest-level organizational scorecard is a suitable way of tying the balance scorecard
performance to rewards as this acts as a barometer for success and arbiter for bonuses. Under this
method, a certain percentage of incentive compensation is available to employees. Each measure
using the highest-level scorecard is assigned a weight for each of the four perspectives summing
up to a 100 percent, however, when assigning the highest weight to the lag and lead indicators,
their significance shouldn’t be high and not surpass the other indicators. Therefore, as the results
are tracked according to the BSC, the percentages payouts are calculated and then distributed as
a bonus payment to the staff of Hot Bread Kitchen.