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HealthSmart sells wellness programs to employers to improve employee health and well-being, which helps companies increase their employee productivity, a major competitive advantage. HealthSmart's corporate strategy is focused on creating the best results in the industry by using a proprietary health behavior change system called the "transtheoretical method" (TTM). HealthSmart has invested nearly all of its capital into creating its TTM solution and training its clinicians, but that has left too little capital for effective marketing and promotion of the differential advantage that TTM creates. HealthSmart's chief marketing officer worries that without enough marketing budget to promote TTM, her company will not meet its revenue goals. Now, apply reading 8: "Using the Balanced Scorecard..." to resolve this problem by answering these questions:
What is the problem with HealthSmart's budgeting process? How would a balanced scorecard help HealthSmart resolve that issue?
How could a dynamic capital budgeting system (reference reading 6 from last week) contribute to a good balanced scorecard at HealthSmart?
How would the use of a balanced scorecard improve HealthSmart's ability to market TTM?
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