i) Strategic issues that should engage the attention of the Board of Directors of Zuri Enterprises.
The strategy elements can be analyzed into three broad categories:

• Strategic Management – How the entity intends to generate and preserve value in terms of the following: strategy and objectives; business model.
• Business Environment – The internal and external environments in which the entity operates – i.e., trends and factors; principal risks and uncertainties; environmental, employee, social, community, and human rights matters.
• Business Performance and Position – How the entity has developed and performed and its position at the year-end: analysis of performance and position; key performance indicators (KPIs); employee gender diversity.
• Corporate Social Responsibility Issues.

(ii) How Balanced Scorecard can be used to measure performance in Zuri Enterprises.
The balanced scorecard approach is an approach to the provision of information to management to assist strategic policy formulation and achievement. The information provided may include both financial and non-financial elements, and cover areas such as profitability, customer satisfaction, internal efficiency, and innovation.
The scorecard offers four perspectives on performance:

• Financial
• Customer
• Innovation and Learning
• Internal Business Processes

Using Financial Perspective to Monitor and Measure Performance
How should Zuri Enterprises look to shareholders? Financial performance measures indicate whether the company’s strategy, implementation, and execution are contributing to bottom-line improvement. Typical financial goals have to do with profitability, growth, and shareholder value. Zuri Enterprises’ financial goals could simply be to survive, to succeed, and to prosper. Survival can be measured and monitored by cash flow, success by quarterly sales growth and operating income by division, and prosperity by increased market share by segment and return on equity.

Customer Perspective: How Do Customers See Zuri Enterprises?
Customers’ concerns tend to fall into four categories: time, quality, performance and service, and cost. To put the balanced scorecard to work, Zuri Enterprises should articulate goals for time, quality, and performance and service and then translate these goals into specific measures. Senior managers at Zuri Enterprises should therefore be assessed and monitored by percentage of sales from new products, on-time delivery to customer (defined by customers), improvement in the company’s Total Quality Management, becoming customers’ supplier of choice through partnerships with them, and developing innovative products tailored to customer needs.

Internal Business Perspective: What Must Zuri Enterprises Excel at?
Customer-based measures are important, but they must be translated into measures of what the company must do internally to meet its customers’ expectations. The internal measures for the balanced scorecard should stem from the business processes that have the greatest impact on customer satisfaction – factors that affect cycle time, quality, employee skills, and productivity.
Managers of Zuri Enterprises should attempt to identify and measure their company’s core competencies, the critical technologies needed to ensure continued market leadership, decide what processes and competencies they must excel at, and specify measures for each.

Innovation and Learning Perspective: Can Zuri Enterprises Continue to Improve and Create Value?
The customer-based and internal business process measures on the balanced scorecard identify the parameters that the company considers most important for competitive success.
Zuri Enterprises’ innovation measures should focus on the group’s ability to develop and introduce standard products rapidly, products that the company expects will form the bulk of its future sales. Its manufacturing improvement measure should focus on new products; the goal is to achieve stability in the manufacturing of new products rather than to improve manufacturing of existing products. Zuri Enterprises should use the percent of sales from new products as one of its innovation and improvement measures. If sales from new products are trending downward, managers can explore whether problems have arisen in new product design or new product introduction.
In addition to measures on product and process innovation, Zuri Enterprises should overlay specific improvement goals for their existing processes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (b)

       Measures which shareholders may seek to resolve any agency problems:

• Financial Rewards for Managers: One of the measures that can be taken to overcome this problem is the way of financial rewarding of the managers. The best way is to calculate their bonuses as a percentage of the realized profit of the company.
• External and Internal Audits: To resolve any agency problem and the development of the company, the external and internal audit is of great importance to be made. It helps to evaluate the efficiency of the company, to detect and stop the eventually inefficient operations as well as to protect the assets and the capital. The most effective way in this situation is to engage external audits who would periodically value the reality and objectivity of the company’s financial reports. Precise financial reporting is critical to ascertaining that the results are stated fairly and the management has not manipulated results for personal gain.
• Share Options: This gives directors and possibly other managers and staff the right to purchase shares at a specified exercise price after a specified time period in the future. The options will normally have an exercise price that is equal to, or slightly higher than, the market price on the date that the options are granted. Options can be used to encourage cautious directors to take positive action to increase the value of the company – for the benefit of shareholders.
• Performance-Related Bonuses: The performance-related elements of executive directors’ remuneration need to be carefully designed in order to ensure that the behaviors and actions that are promoted as a result of the targets are aligned with the long-term success of the company and the interests of shareholders and at the same time are stretching. Remuneration incentives should be compatible with risk policies and systems and criteria for paying bonuses should be risk-adjusted. However, non-executive directors should not be remunerated by shares or other performance-related elements since this will compromise their independence.
• Threat of Takeover: Another market force is the threat of takeover by another firm that believes it can enhance the target firm’s value by restructuring its controlling, processes, and funding. The constant threat of takeover tends to motivate management to act in the best interest of the firm’s owner.
• Annual General Meetings (AGMs): AGMs are a means to engage shareholders and allow them to participate actively in the running of their companies. This way, agency problems would be reduced since shareholders are involved in the decision making regarding their companies.