This 25-mark question was based on the application of the balanced scorecard at a logistics support business, Victoria. This was the most popular of the section B questions and was generally well answered.

Part (a), for 5 marks, asked for a discussion of the links between the customer perspective (and four success factors were given in an appendix for this) and the three financial metrics also given in the appendix. Those candidates that showed how success under each factor linked to changes in each of the three metrics scored all the marks.

However, many candidates chose not to answer the question and instead discussed how the customer perspective factors aided achievement of the business strategy or else had a broadly positive effect on the financial position of the business.

These were inadequate answers from P5 candidates who are expected to be able to talk in detail about factors affecting ROCE, profit margin and revenue growth. Worryingly, many candidates assume that revenue growth automatically means profit margin improvement and so improvement in ROCE, without any further consideration of cost or capital implications.