Written Group Project Report-Balanced Scorecard Analysis Essay Example
Written Group Project Report
Balanced Scorecard Analysis
Balanced scorecard is an important tool in ABC Company Limited. It provides essential means of determining performance of the company in various fronts. In respect of this aspect, the scorecard is an ideal supplement to conventional financial measures (Kaplan, & Norton 2013 p.12). In the case of ABC, the company applies four dimensions in measuring its performance. These dimensions include financial aspect, customer relations, business process as well as learning and innovation dimension.
The main aim of balanced scorecard is to help the firm in setting strategies particularly from these four dimensions. It provides the management with a well-defined overview of the current circumstances within the organisation. By understanding the actual situation of the company, management is able to formulate viable strategy to enhance desirable operation (Nørreklit, et al 2012 p. 45).
According to Balanced Scorecard, the firm attributes its financial success to factors such as continuous learning and innovation which determine the growth rate (Biazzo, & Garengo 2012 p.16). It implies that each of the four dimensions has significant value and contribution towards both profitability and sustainability of the ABC Company Limited.
Note that the major concern for ABC is utilising the limited financial resources to generate sufficient revenue while contributing positively towards reducing wastage. The company does this by buying food stuff that is about to expire from estates and preparing the same for resale to its customers. It acquires foodstuff at relatively low prices from households in different estates thus minimising wastage. In addition, it assists people by providing food at convenient locations hence facilitating efficiency and effectiveness at work. As a result, it contributes to economic development and environment conservation.
Balanced Scorecard Strategy Chart
Knowledge Development – This aspect represents learning and growth of company staff
Affordable food, Convenience and Curbing wastage represents business processes
Satisfaction, Loyalty and Goodwill are aspects of customer relationship
Business profitability indicates financial dimension of the balanced scorecard
Financial dimension – The main objective of any business is to generate returns and create sustainable market share. ABC performs well due to accessing foodstuff at low cost and selling the same at good profit.
Customer relationship dimension – The Company provides a good value to the customer by enabling them access food at cheap prices. Timely delivery of food at convenient place is also another aspect of ideal customer relationship. Consequently, the business creates consumer satisfaction hence increasing market share (Niven 2011 p. 28).
Business processes includes collecting foodstuff from different residential areas and preparing the same for resale. Transporting them to different places in order to reach the customer is also part of internal processes. It helps in reducing wastage of resources hence contributing to environmental conservation. Food that would have been thrown away is utilised hence wise use of available resources without wastage.
Learning and innovation – The business exposes the employees to accessing essential knowledge on reducing wastage and using the already available resources to generate revenue. Buying food at cheap prices and selling them to the public is an aspect of innovation. In respect of this, employees are able to develop innovation and entrepreneurship skills.
Biazzo, S., & Garengo, P. (Eds.). (2012). Performance Measurement with the Balanced Scorecard: A Practical Approach to Implementation Within SMEs (Vol. 6). Springer.
Kaplan, R., & Norton, D. P. (2013). Alignment: Using the balanced scorecard to create corporate synergies. Harvard Business Press.
Niven, P. R. (2011). Balanced scorecard: Step-by-step for government and nonprofit agencies. John Wiley & Sons.
Nørreklit, H., Nørreklit, L., Mitchell, F., & Bjørnenak, T. (2012). The rise of the balanced scorecard! Relevance regained?. Journal of Accounting & Organizational Change, 8(4), 490-510.
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