This document provides a summary of the balanced scorecard approach implemented by Tesco PLC. It examines the 4 perspectives of the balanced scorecard - financial, customer, internal business processes, and learning and growth. For each perspective, it outlines some of Tesco's key performance indicators and strategies. For example, under the financial perspective it discusses Tesco's profit margins and cost cutting measures, and under the customer perspective it mentions their loyalty clubcard program. The document also notes some criticisms of Tesco's approach, such as putting pressure on suppliers and employees.
Tesco. how to improve its balanced score card. mario samuel camacho compressedMario Samuel Camacho
This report describes the transition of Tesco from its old balanced scorecard to a new one, explaining the new categories and their results in management analysis.
MAS Holdings is a $1.6 billion Sri Lankan conglomerate and one of the world's largest apparel manufacturers. It was founded in 1987 and has 48 manufacturing facilities across 15 countries. MAS has diversified into other businesses like IT and owns brands like amanté. It is a leader in sustainable practices and was the first in its industry to achieve LEED Platinum certification for its Thurulie green manufacturing plant. MAS has over 74,000 employees worldwide and works with major brands like Nike, Marks & Spencer, and Victoria's Secret.
This document discusses the debate between standardization and customization in global marketing. It notes that while standardization allows companies to achieve economies of scale, full standardization may not be appropriate given variations across markets in customer preferences and regulations. Companies must determine the best combination of global and local activities. The document provides several examples of companies that take different approaches, such as McDonald's using a global brand but some localized products, and concludes that adjusting strategies to account for market variations enhances success.
Tesco is the biggest retailer in UK now. Having operations in 14 countries with 2,291 stores spread globally, Tesco employs 296,000 people. Now their focus is on “Creating value for customers, to earn their lifetime loyalty” and strives to “be energetic, be innovative and be the first for the customer”. So the 21st customer has taken a great leap over “pile high, sell it cheap “strategy and demanding nature of the customer has forced Tesco to continuously improve
The document provides an analysis of Tesco's strategic management through a PESTEL analysis, Porter's 5 Forces analysis, critical success factors, SWOT analysis, and value chain analysis. It examines Tesco's external environment and industry factors, identifies Tesco's critical success factors as strong branding, IT integration, and supplier management. The document also analyzes Tesco's strategic options and core competencies.
Tesco has grown to become the largest supermarket chain in the UK through innovations in supply chain management. The company adopted lean principles from Toyota to reduce waste and implement just-in-time inventory practices. This included point-of-sale scanning, centralized ordering and distribution, and automated warehouse control. While Tesco has achieved supply chain efficiencies through these methods, international expansion presents challenges in adapting practices to diverse global markets and suppliers.
The document provides an executive summary and situation analysis for Mr. POP, the second largest snack brand in Sri Lanka with 25% market share. The objectives for 2019/2020 include increasing revenue by 16.71% to LKR 817 million, market share to 30%, and consumer awareness. Mr. POP is manufactured and distributed by Shaw Wallace Ceylon Ltd, a subsidiary of Renuka Holdings PLC. Key competitors are Tipitip with 28.89% market share and Diana with 15.56%. Opportunities for growth include the expanding modern trade sector, while threats include imported snacks and consumer focus on health and essential goods due to economic instability.
Brandix Lanka Limited is a Sri Lankan apparel manufacturing company with a mission to help organizations conduct business efficiently and effectively using appropriate technologies. It has over 10,000 employees and produces a variety of apparel products. The company aims to become a leading global provider of branded clothing through a culture of integrity, teamwork, customer service, and commitment to learning and development.
Tesco. how to improve its balanced score card. mario samuel camacho compressedMario Samuel Camacho
This report describes the transition of Tesco from its old balanced scorecard to a new one, explaining the new categories and their results in management analysis.
MAS Holdings is a $1.6 billion Sri Lankan conglomerate and one of the world's largest apparel manufacturers. It was founded in 1987 and has 48 manufacturing facilities across 15 countries. MAS has diversified into other businesses like IT and owns brands like amanté. It is a leader in sustainable practices and was the first in its industry to achieve LEED Platinum certification for its Thurulie green manufacturing plant. MAS has over 74,000 employees worldwide and works with major brands like Nike, Marks & Spencer, and Victoria's Secret.
This document discusses the debate between standardization and customization in global marketing. It notes that while standardization allows companies to achieve economies of scale, full standardization may not be appropriate given variations across markets in customer preferences and regulations. Companies must determine the best combination of global and local activities. The document provides several examples of companies that take different approaches, such as McDonald's using a global brand but some localized products, and concludes that adjusting strategies to account for market variations enhances success.
Tesco is the biggest retailer in UK now. Having operations in 14 countries with 2,291 stores spread globally, Tesco employs 296,000 people. Now their focus is on “Creating value for customers, to earn their lifetime loyalty” and strives to “be energetic, be innovative and be the first for the customer”. So the 21st customer has taken a great leap over “pile high, sell it cheap “strategy and demanding nature of the customer has forced Tesco to continuously improve
The document provides an analysis of Tesco's strategic management through a PESTEL analysis, Porter's 5 Forces analysis, critical success factors, SWOT analysis, and value chain analysis. It examines Tesco's external environment and industry factors, identifies Tesco's critical success factors as strong branding, IT integration, and supplier management. The document also analyzes Tesco's strategic options and core competencies.
Tesco has grown to become the largest supermarket chain in the UK through innovations in supply chain management. The company adopted lean principles from Toyota to reduce waste and implement just-in-time inventory practices. This included point-of-sale scanning, centralized ordering and distribution, and automated warehouse control. While Tesco has achieved supply chain efficiencies through these methods, international expansion presents challenges in adapting practices to diverse global markets and suppliers.
The document provides an executive summary and situation analysis for Mr. POP, the second largest snack brand in Sri Lanka with 25% market share. The objectives for 2019/2020 include increasing revenue by 16.71% to LKR 817 million, market share to 30%, and consumer awareness. Mr. POP is manufactured and distributed by Shaw Wallace Ceylon Ltd, a subsidiary of Renuka Holdings PLC. Key competitors are Tipitip with 28.89% market share and Diana with 15.56%. Opportunities for growth include the expanding modern trade sector, while threats include imported snacks and consumer focus on health and essential goods due to economic instability.
Brandix Lanka Limited is a Sri Lankan apparel manufacturing company with a mission to help organizations conduct business efficiently and effectively using appropriate technologies. It has over 10,000 employees and produces a variety of apparel products. The company aims to become a leading global provider of branded clothing through a culture of integrity, teamwork, customer service, and commitment to learning and development.
Mott MacDonald is a global management and engineering consultancy firm with over 13,000 employees working on projects in 120 countries. The company aims to provide customer satisfaction through professional excellence, commercial success, and employee fulfillment, as stated in its mission. Mott MacDonald achieves this by employing skilled experts, promoting learning and development for employees, and involving employees in company performance and decision making to ensure their satisfaction and contribution to the company's success.
I. This book analyzes the evolution of organizational structures in large US companies from the 1800s to 1960. It focuses on four major companies that pioneered the "multidivisional" structure in the 1920s: Du Pont, General Motors, Standard Oil, and Sears.
II. In the 1800s, railroads developed more complex administrative hierarchies of field units, departments, and central offices to manage growth. Later, other industries integrated vertically through acquisitions or consolidation, but lacked strong administrative structures.
III. By the 1920s, centralized functional departments had become standard, but lacked flexibility. The four pioneering companies responded to new strategies of diversification and global expansion by decentralizing into product/regional divisions
The document discusses developing systems to involve stakeholders in strategic change planning. It outlines developing stakeholder engagement strategies that include brainstorming, focus groups, interviews, reviewing existing data and timelines. It also discusses evaluating stakeholder engagement systems by establishing effort levels, preferred engagement forms and frequencies. Proactive engagement allows issues to be addressed within high trust frameworks, unlike reactive engagement during problems or crises. Good stakeholder programs have timely information disclosure, understand stakeholder perspectives, and evaluate engagement effectiveness.
The document discusses corporate governance, including its meaning, scope, and evolution over time through various committees in India. It covers key aspects like the roles of the CEO, board of directors, and senior management. The agency theory around the principal-agent relationship is also summarized. Corporate governance aims to ensure a company is managed in the interests of all stakeholders through processes and systems. It has become increasingly important given corporate failures and seeks to restore transparency and accountability.
The VRIO framework is used to analyze a firm's internal resources and capabilities to determine if they can provide sustained competitive advantage. It involves assessing if a resource is valuable, rare, costly to imitate, and the firm is organized to capture its value. A resource that meets all four criteria can provide long-term competitive edge. The document then provides details on each element of the VRIO framework and how to identify a firm's key resources.
Unit v new business model and strategy for internet economyDeborah Sharon
The document discusses business models and strategies for internet and e-commerce firms. It describes four aspects of business models including revenue sources, cost drivers, investment size, and critical success factors. It also discusses the web strategy where firms collaborate around a technology platform. Key points of the web strategy include technological standards, increasing returns, and different strategic roles firms can play as shapers or adapters. Revenue sources for internet businesses are also summarized including advertising, subscriptions, affiliate marketing, and selling data.
This document provides an overview of Tesco, the largest retailer in the UK. It discusses Tesco's industry, competitors, strategies and financial performance. Tesco has over 2,400 stores worldwide, a 30% market share in the UK grocery market, and sales of over £22 billion in 2007. The document analyzes Tesco using various frameworks including Porter's five forces, resource-based view and SWOT analysis. It recommends Tesco focus on improving existing stores and potentially form strategic alliances to address weaknesses.
This document discusses an operations management report on Tesco. It begins with an introduction to operations management and Tesco's emphasis on effective operations. It then analyzes Tesco's type of operations as mass service and identifies its key processes as stocking shelves, deliveries, and checkout. The document evaluates Tesco's operations using a five performance objectives framework, finding its major strengths are speed, flexibility, and quality, while its weakness is in lean implementation perception. It concludes Tesco successfully manages its operations.
- The Amalean brothers started MAS Holdings 27 years ago in Sri Lanka with 30 employees and has since grown to be the largest apparel manufacturer in South Asia, employing over 60,000 people across 34 facilities worldwide.
- MAS has an annual turnover of over $1 billion as of 2012 through strategic partnerships with major brands like Victoria's Secret, Marks & Spencer, Nike, and Speedo.
- MAS Intimates' largest customer is Victoria's Secret, while Nike is the largest customer for MAS Active. MAS has established multiple production facilities across Sri Lanka to provide jobs and economic opportunities.
The VRIO framework evaluates a firm's resources according to four questions: value, rarity, imitability, and organization. Resources that are valuable, rare, costly to imitate, and supported by a firm's organization can provide sustained competitive advantage. Resources that are valuable and rare but easily imitated only provide temporary advantage. Resources that are not rare provide no advantage over competitors. The VRIO framework helps firms assess which resources provide opportunities to exploit environmental factors or neutralize threats.
Burberry has undergone two major shifts in its 150-year history: from an army trench coat maker to a men's wear company, and more recently in 1998 from a "me too" brand to a pioneer in new products and digital promotions. To understand the brand's personality, the author analyzes it using Kapferer's brand identity prism and Aaker's personality scale. Key aspects of Burberry's personality include sincerity, excitement, sophistication, and ruggedness. Burberry has changed its target market to younger millennials and expanded globally through digital marketing. Its main competitors are Louis Vuitton and Gucci, with similarities including heritage, use of digital media, and threats from counterfeiting. Burberry
Management Information System In Amazon Inc.MD Tamal
A report on “Impact of Management Information System in Amazon Inc.” under the requirement of B.B.A program (Course Title: Management Information System), Department of Finance and Banking, University of Barisal || 2019
Tata Motors, an Indian automotive manufacturing company, acquired an 80% stake in Trilix Srl, an Italian design and engineering firm, for €1.85 million. Trilix offers design and engineering services for the automotive sector, including styling, architecture, and packaging. The vertical merger allows Tata Motors to increase its styling and design capabilities globally and leverage Trilix's existing understanding of the Tata brand and relationship with the company from prior projects.
The document discusses a PESTEL analysis framework for analyzing macroenvironmental factors. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal factors. It provides questions to analyze each factor and how they may impact a business or industry. For example, key political factors would include government stability, laws and regulations. Understanding the external environment is important for strategic planning and identifying opportunities and threats.
- Core competencies are the main strengths or strategic advantages of a business that include pooled knowledge and technical capacities that allow a business to be competitive. They should provide potential access to markets and make a significant contribution to customer benefits. They are also difficult for competitors to imitate.
- Amazon's core competency is its cloud computing service AWS, which provides visibility and control of infrastructure through a unified interface. It allows viewing optional data from various AWS resources and grouping them for monitoring, troubleshooting, and controlling groups of resources. AWS also enables quick detection and resolution of problems through easy-to-use automation.
Ceylon Cold Stores established in 1866 and produces carbonated drinks under the Elephant House brand. It has since expanded its product range and relocated its manufacturing plant to Hanwella. Elephant House uses a hybrid layout for its plant consisting of both process and product layouts. This allows some flexibility to suit production needs. Its supply chain integrates suppliers to help meet demand and reduce costs through just-in-time practices and centralized purchasing. Going forward, Elephant House aims to sustain its market share through product innovation, brand loyalty, and continually improving key operations management areas.
This document provides an overview of strategic management and the resource-based view (RBV) of the firm. It discusses the key differences between the industrial organization model and RBV, defining resources and capabilities in RBV. VRIO framework is explained for assessing if resources can provide sustained competitive advantage. Criticisms of RBV are outlined along with suggestions for future research, such as further defining resources and developing a more subjective view of resource value in RBV theory.
This document provides an overview of international strategic alliances. It discusses the characteristics of strategic alliances, including independence of partners, shared benefits, and ongoing contributions between partners. It also describes the types of strategic alliances, such as functional alliances involving production, marketing, finance, or research and development. Additionally, it outlines the key stages in the life cycle of a strategic alliance - formation, operation, and end or development. The scope of strategic alliances can range from comprehensive alliances across multiple business functions to narrowly defined alliances within a single function.
This document provides an overview of strategic management concepts across 6 units. It discusses key topics such as defining strategy, tests of a good strategy, the strategy making process, external analysis tools like PESTEL and Porter's 5 Forces, internal analysis including resources/capabilities and core competencies, growth strategies like integration and diversification, and international strategies. Assessment techniques like SWOT, value chain analysis, and portfolio maps are also summarized. The document aims to provide a brief content overview of examination material on strategic management.
The Balanced Scorecard is a strategic planning and management system that monitors organizational performance against strategic goals. It was developed in the 1990s to provide a more balanced view of organizational performance than traditional financial measures. The Balanced Scorecard approach uses four perspectives - financial, customer, internal business processes, and learning and growth - to align business activities with an organization's strategic vision. Key to successful implementation is executive commitment, involvement of managers and employees, effective communication, and viewing it as a long-term change rather than a short-term project.
The document discusses the balanced scorecard framework. It describes the balanced scorecard as having four key business perspectives: financial, customer, internal process, and learning and growth. It provides examples of metrics that could be used for each perspective. Companies adopt the balanced scorecard to help with change, growth, and implementation efforts. The balanced scorecard helps align business activities with vision and strategy and provides a comprehensive view of organizational performance.
Mott MacDonald is a global management and engineering consultancy firm with over 13,000 employees working on projects in 120 countries. The company aims to provide customer satisfaction through professional excellence, commercial success, and employee fulfillment, as stated in its mission. Mott MacDonald achieves this by employing skilled experts, promoting learning and development for employees, and involving employees in company performance and decision making to ensure their satisfaction and contribution to the company's success.
I. This book analyzes the evolution of organizational structures in large US companies from the 1800s to 1960. It focuses on four major companies that pioneered the "multidivisional" structure in the 1920s: Du Pont, General Motors, Standard Oil, and Sears.
II. In the 1800s, railroads developed more complex administrative hierarchies of field units, departments, and central offices to manage growth. Later, other industries integrated vertically through acquisitions or consolidation, but lacked strong administrative structures.
III. By the 1920s, centralized functional departments had become standard, but lacked flexibility. The four pioneering companies responded to new strategies of diversification and global expansion by decentralizing into product/regional divisions
The document discusses developing systems to involve stakeholders in strategic change planning. It outlines developing stakeholder engagement strategies that include brainstorming, focus groups, interviews, reviewing existing data and timelines. It also discusses evaluating stakeholder engagement systems by establishing effort levels, preferred engagement forms and frequencies. Proactive engagement allows issues to be addressed within high trust frameworks, unlike reactive engagement during problems or crises. Good stakeholder programs have timely information disclosure, understand stakeholder perspectives, and evaluate engagement effectiveness.
The document discusses corporate governance, including its meaning, scope, and evolution over time through various committees in India. It covers key aspects like the roles of the CEO, board of directors, and senior management. The agency theory around the principal-agent relationship is also summarized. Corporate governance aims to ensure a company is managed in the interests of all stakeholders through processes and systems. It has become increasingly important given corporate failures and seeks to restore transparency and accountability.
The VRIO framework is used to analyze a firm's internal resources and capabilities to determine if they can provide sustained competitive advantage. It involves assessing if a resource is valuable, rare, costly to imitate, and the firm is organized to capture its value. A resource that meets all four criteria can provide long-term competitive edge. The document then provides details on each element of the VRIO framework and how to identify a firm's key resources.
Unit v new business model and strategy for internet economyDeborah Sharon
The document discusses business models and strategies for internet and e-commerce firms. It describes four aspects of business models including revenue sources, cost drivers, investment size, and critical success factors. It also discusses the web strategy where firms collaborate around a technology platform. Key points of the web strategy include technological standards, increasing returns, and different strategic roles firms can play as shapers or adapters. Revenue sources for internet businesses are also summarized including advertising, subscriptions, affiliate marketing, and selling data.
This document provides an overview of Tesco, the largest retailer in the UK. It discusses Tesco's industry, competitors, strategies and financial performance. Tesco has over 2,400 stores worldwide, a 30% market share in the UK grocery market, and sales of over £22 billion in 2007. The document analyzes Tesco using various frameworks including Porter's five forces, resource-based view and SWOT analysis. It recommends Tesco focus on improving existing stores and potentially form strategic alliances to address weaknesses.
This document discusses an operations management report on Tesco. It begins with an introduction to operations management and Tesco's emphasis on effective operations. It then analyzes Tesco's type of operations as mass service and identifies its key processes as stocking shelves, deliveries, and checkout. The document evaluates Tesco's operations using a five performance objectives framework, finding its major strengths are speed, flexibility, and quality, while its weakness is in lean implementation perception. It concludes Tesco successfully manages its operations.
- The Amalean brothers started MAS Holdings 27 years ago in Sri Lanka with 30 employees and has since grown to be the largest apparel manufacturer in South Asia, employing over 60,000 people across 34 facilities worldwide.
- MAS has an annual turnover of over $1 billion as of 2012 through strategic partnerships with major brands like Victoria's Secret, Marks & Spencer, Nike, and Speedo.
- MAS Intimates' largest customer is Victoria's Secret, while Nike is the largest customer for MAS Active. MAS has established multiple production facilities across Sri Lanka to provide jobs and economic opportunities.
The VRIO framework evaluates a firm's resources according to four questions: value, rarity, imitability, and organization. Resources that are valuable, rare, costly to imitate, and supported by a firm's organization can provide sustained competitive advantage. Resources that are valuable and rare but easily imitated only provide temporary advantage. Resources that are not rare provide no advantage over competitors. The VRIO framework helps firms assess which resources provide opportunities to exploit environmental factors or neutralize threats.
Burberry has undergone two major shifts in its 150-year history: from an army trench coat maker to a men's wear company, and more recently in 1998 from a "me too" brand to a pioneer in new products and digital promotions. To understand the brand's personality, the author analyzes it using Kapferer's brand identity prism and Aaker's personality scale. Key aspects of Burberry's personality include sincerity, excitement, sophistication, and ruggedness. Burberry has changed its target market to younger millennials and expanded globally through digital marketing. Its main competitors are Louis Vuitton and Gucci, with similarities including heritage, use of digital media, and threats from counterfeiting. Burberry
Management Information System In Amazon Inc.MD Tamal
A report on “Impact of Management Information System in Amazon Inc.” under the requirement of B.B.A program (Course Title: Management Information System), Department of Finance and Banking, University of Barisal || 2019
Tata Motors, an Indian automotive manufacturing company, acquired an 80% stake in Trilix Srl, an Italian design and engineering firm, for €1.85 million. Trilix offers design and engineering services for the automotive sector, including styling, architecture, and packaging. The vertical merger allows Tata Motors to increase its styling and design capabilities globally and leverage Trilix's existing understanding of the Tata brand and relationship with the company from prior projects.
The document discusses a PESTEL analysis framework for analyzing macroenvironmental factors. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal factors. It provides questions to analyze each factor and how they may impact a business or industry. For example, key political factors would include government stability, laws and regulations. Understanding the external environment is important for strategic planning and identifying opportunities and threats.
- Core competencies are the main strengths or strategic advantages of a business that include pooled knowledge and technical capacities that allow a business to be competitive. They should provide potential access to markets and make a significant contribution to customer benefits. They are also difficult for competitors to imitate.
- Amazon's core competency is its cloud computing service AWS, which provides visibility and control of infrastructure through a unified interface. It allows viewing optional data from various AWS resources and grouping them for monitoring, troubleshooting, and controlling groups of resources. AWS also enables quick detection and resolution of problems through easy-to-use automation.
Ceylon Cold Stores established in 1866 and produces carbonated drinks under the Elephant House brand. It has since expanded its product range and relocated its manufacturing plant to Hanwella. Elephant House uses a hybrid layout for its plant consisting of both process and product layouts. This allows some flexibility to suit production needs. Its supply chain integrates suppliers to help meet demand and reduce costs through just-in-time practices and centralized purchasing. Going forward, Elephant House aims to sustain its market share through product innovation, brand loyalty, and continually improving key operations management areas.
This document provides an overview of strategic management and the resource-based view (RBV) of the firm. It discusses the key differences between the industrial organization model and RBV, defining resources and capabilities in RBV. VRIO framework is explained for assessing if resources can provide sustained competitive advantage. Criticisms of RBV are outlined along with suggestions for future research, such as further defining resources and developing a more subjective view of resource value in RBV theory.
This document provides an overview of international strategic alliances. It discusses the characteristics of strategic alliances, including independence of partners, shared benefits, and ongoing contributions between partners. It also describes the types of strategic alliances, such as functional alliances involving production, marketing, finance, or research and development. Additionally, it outlines the key stages in the life cycle of a strategic alliance - formation, operation, and end or development. The scope of strategic alliances can range from comprehensive alliances across multiple business functions to narrowly defined alliances within a single function.
This document provides an overview of strategic management concepts across 6 units. It discusses key topics such as defining strategy, tests of a good strategy, the strategy making process, external analysis tools like PESTEL and Porter's 5 Forces, internal analysis including resources/capabilities and core competencies, growth strategies like integration and diversification, and international strategies. Assessment techniques like SWOT, value chain analysis, and portfolio maps are also summarized. The document aims to provide a brief content overview of examination material on strategic management.
The Balanced Scorecard is a strategic planning and management system that monitors organizational performance against strategic goals. It was developed in the 1990s to provide a more balanced view of organizational performance than traditional financial measures. The Balanced Scorecard approach uses four perspectives - financial, customer, internal business processes, and learning and growth - to align business activities with an organization's strategic vision. Key to successful implementation is executive commitment, involvement of managers and employees, effective communication, and viewing it as a long-term change rather than a short-term project.
The document discusses the balanced scorecard framework. It describes the balanced scorecard as having four key business perspectives: financial, customer, internal process, and learning and growth. It provides examples of metrics that could be used for each perspective. Companies adopt the balanced scorecard to help with change, growth, and implementation efforts. The balanced scorecard helps align business activities with vision and strategy and provides a comprehensive view of organizational performance.
The Balanced Scorecard is a framework that helps organizations visualize their strategy and translate it into operational objectives across four perspectives: financial, customer, internal processes, and learning and growth. It includes both financial and non-financial metrics that cover past, present, and future periods, as well as internal and external metrics that are causes and effects. The document provides an example of how Disney used the Balanced Scorecard across the four perspectives, including objectives, metrics, and targets for each perspective. It also outlines action plans and initiatives for each perspective.
Starbucks uses a balanced scorecard (BSC) approach to implement its strategy across the organization. The BSC framework includes four perspectives: financial, customer, internal business processes, and innovation, learning and growth. Starbucks' mission is to inspire and nurture the human spirit through coffee. It has over 23,000 stores globally and pursues strategic imperatives like penetrating new markets, leveraging its brand, being a social gathering place, being an environmental leader, and investing in employees.
The document discusses using a balanced scorecard and strategy map to drive corporate performance. It provides an overview of key components:
1) A balanced scorecard balances financial and non-financial metrics across four perspectives: financial, customer, internal processes, and learning and growth.
2) A strategy map translates a company's strategy and helps identify strategic objectives and key performance indicators (KPIs) within each perspective.
3) KPIs should be measurable, relevant to objectives, and help evaluate progress towards strategic goals. Different types of KPIs include productivity, quality, profitability and more.
The balanced scorecard is a model that evaluates business performance using measures of financial performance, internal operations, innovation/learning, and customer satisfaction. Pantaloon Retail Ltd. created a balanced scorecard with goals and measures in these four areas to help achieve their vision of 25% growth in sales and profits, including increasing customer satisfaction, reducing defects, and raising employee training and innovation. The balanced scorecard is intended to translate Pantaloon's strategy into operational objectives that drive both behavior and performance.
The document discusses the balanced scorecard framework introduced by Kaplan and Norton in 1992. The balanced scorecard measures a company's performance across four perspectives: financial, customer, internal business processes, and learning and growth. It focuses not just on financial measures but also human and long-term strategic factors that drive financial outcomes. Key performance indicators are identified for each perspective. The balanced scorecard establishes cause-and-effect relationships between performance drivers and outcomes. It provides managers a comprehensive view of business performance.
The document describes how EBSS, a joint venture between Toshiba, Accenture and Oracle Japan, used a Balanced Scorecard (BSC) approach to align its technology implementation initiatives with overall business strategy. With help from Infosys consultants, EBSS developed a BSC that identified key strategic initiatives and objectives. The BSC served as a framework to define implementation plans, business processes, and metrics to track financial, customer, internal process and growth goals. It helped EBSS successfully execute projects globally on time and budget by leveraging the strengths of its partner companies.
Philippines Airlines has been operating since 1941 and was the first airline to fly across the Pacific in 1946. It struggled during the Asian financial crisis in the late 1990s but recovered in 2000 under new management. Its vision is to maintain high aircraft standards and conduct safe, on-time, and cost-effective flight operations. Its mission is to become the dominant carrier in Asia. The airline uses a balanced scorecard to track its performance across financial, customer, internal business, and innovation/learning perspectives with objectives, measures, targets, and initiatives in each area.
The document provides an overview of the Balanced Scorecard framework developed by Robert Kaplan and David Norton in the early 1990s. It discusses that the Balanced Scorecard translates an organization's mission and strategy into a comprehensive set of performance measures across four perspectives: financial, customer, internal business processes, and learning and growth. The Balanced Scorecard helps organizations implement their strategies by setting objectives and measures for each perspective, and monitoring performance to drive continuous improvement.
The Balanced Scorecard is a strategic planning and management system that monitors organizational performance against strategic goals. It was developed in 1992 by Kaplan and Norton to provide a balanced perspective beyond just financial measures. The Balanced Scorecard approach suggests viewing an organization from four perspectives: financial, customer, internal business processes, and learning and growth. Key to implementation is obtaining executive support, involving leaders and employees, enhancing information systems, and monitoring progress.
The document provides information about Adidas, the largest sportswear manufacturer in Europe. It details the company's history, founders, mission, vision, core values, brand attributes, key markets, strengths, weaknesses, opportunities, threats, target markets, product positioning, marketing mix, and strategies. The document segments Adidas's market and presents information in their balance scorecard, including objectives, targets, measurements, and budgets.
This document provides an overview of managing corporate performance using the balanced scorecard approach. It discusses key components of performance management including identifying strategic objectives and key performance indicators across four perspectives: financial, customer, internal processes, and learning and growth. Strategy maps are presented as a framework to translate strategies into objectives and measures across each perspective. Examples are also given of strategy maps tailored for different corporate functions like HR, IT, finance and marketing.
The document discusses the balanced scorecard (BSC) framework. It provides a brief history of the BSC, noting that it was developed by Kaplan and Norton in the 1990s to link strategy with performance. The BSC uses four perspectives - financial, customer, internal processes, and learning and growth. It integrates strategic objectives and measures across these perspectives to monitor organizational performance and ensure goals are met. The document then provides an example of how a company developed its strategy map and objectives across each BSC perspective, along with related measures and targets.
University of Bradford, Sustainability Communication Aanchal Saxena
Development of a 3 month student-specific communications plan using Smith and Taylor’s SOSTAC planning system to get the campus users – the people, helping to make the University of Bradford as environmentally friendly as possible. The brand name discussed in this assignment is the 'Ecoversity' Brand.
The balanced scorecard translates a company's mission and strategy into objectives and measures across four perspectives: financial, customer, internal business processes, and learning and growth. It communicates how non-financial measures support financial measures and strategy. Objectives and measures are identified within each perspective to track performance and ensure the company's strategy is executed effectively. The perspectives are linked so that internal business processes and learning/growth objectives support customer objectives, which ultimately support financial objectives and strategy.
The document discusses the balanced scorecard approach and organizational capabilities. It presents the four perspectives of the balanced scorecard: learning and growth, internal business process, customer, and financial. It then lists and defines 12 key organizational capabilities such as talent, innovation, customer connectivity, and efficiency. For each capability, it provides an explanation and suggestions for ways to evaluate and track that capability within an organization.
The document discusses the balanced scorecard performance management system. It presents the balanced scorecard from four perspectives: financial, customer, internal processes, and learning and growth. It then provides examples of objectives and measures that could be used for each perspective when applying the balanced scorecard to a bank. Finally, it notes some potential limitations or challenges with the balanced scorecard approach.
The pressure is on marketing to quantify the benefits of the huge spend including brand) it incurs. It\'s not particularly difficult, although it is a fair amount of work. This presentation shows you how! Let me know if you need help!
1. The document discusses the supermarket group business in the UK, with four major players being Tesco, Asda, Sainsbury, and Morrison. It focuses the analysis on Morrison and evaluates its financial performance and dividend policy.
2. The business life cycle model is applied to analyze what stage Morrison is currently in. The four stages are start-up, growth, maturity, and decline. Financial strategy differs at each stage.
3. The analysis of Morrison is structured into three sections - identifying its stage in the business life cycle, analyzing its financial patterns and capital structure, and evaluating its dividend policy against relevant theories. A conclusion and recommendations will also be
The Role of Balanced Scorecard for Measuring Competitive Advantage of Contain...inventionjournals
This document discusses using the Balanced Scorecard (BSC) framework to measure the competitive advantage of container terminals. The BSC is a strategic planning and management system that incorporates both financial and non-financial metrics. It can help container terminal managers better understand strategic vision and employee contributions to strategic goals. The document outlines the key components of the BSC - financial, customer, internal business process, and learning & growth perspectives. It also discusses how the BSC has been applied to measure performance at Iranian container terminals, optimize terminal operations, and identify core competencies that provide sustainable competitive advantages.
This document examines the Balanced Scorecard Model within Strategic Management. It discusses the four perspectives of the Balanced Scorecard - financial, customer, internal processes, and learning and growth. It then discusses how organizations like the Kenya Red Cross implement the Balanced Scorecard and looks at some limitations and modern adaptations of the model.
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The document provides an overview of the balanced scorecard approach and its application to Spinneys Supermarket. It discusses the four perspectives of the balanced scorecard - financial, customer, internal business processes, and learning and growth. For the financial perspective of Spinneys, it analyzes objectives and metrics related to revenue growth, productivity, and profitability. Key financial ratios for Spinneys in 2011 and 2012 are also calculated and compared to industry averages. The balanced scorecard helps Spinneys evaluate and improve performance by considering both financial and non-financial factors.
World Leader in Performance Excellence
BMGI’s Business Excellence Roadmap provides a recommended engagement roadmap for organizations seeking to implement a business excellence program. It discusses business excellence and its benefits, including improved business performance, profitability, and competitive advantage. The roadmap includes assessments, quick win actions, an implementation plan, and establishing governance structures to ensure successful transformation.
An Overview of Corporate Finance and the Financial Environment.pdfCynthia Velynne
This document provides an overview of different types of business organizations: sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by one individual and have unlimited liability but are easy to form. Partnerships have two or more owners with unlimited liability but are also easy to form. Corporations have limited liability for owners, unlimited lifespan, and easy ownership transfer through stock shares, making them better able to raise capital. Most large businesses are organized as corporations to maximize value. Managing agencies is a potential problem for corporations that is addressed through governance structures.
This document discusses various multidimensional performance measurement models and tools, including the balanced scorecard, performance prism, activity-based budgeting, cash flow modeling, activity-based costing, quality management tools, value chain analysis, and customer relationship management. Real-world examples are provided for each tool to illustrate how companies have implemented them. While financial measures were considered most important by 71% of managers in one study, the document emphasizes that a combination of financial and non-financial metrics is needed to fully understand company performance across different dimensions.
INSTRUCTIONS Please read the case first and then answer specificall.docxmaoanderton
INSTRUCTIONS: Please read the case first and then answer specifically the proper questions asked
below. PLEASE ANSWER ALL THE QUESTIONS. PLEASE USE A SEPARATE SHEET OF PAPER TO ANSWER
YOUR QUESTIONS.
Backstory: General Electric Co. decided sustainability was a business opportunity rather than a cost and
pushed into the field in 2005 with its new initiative. But the products and services weren’t only for its
customers — they first transformed GE.
Key moves: GE began looking at sustainability as part of a demographic trend, realizing that scarcity would
increase with population growth. Energy and water use, waste, carbon emissions — all would decline
among the most efficient and sustainable companies. GE saw a profitable business opportunity in helping
companies along this sustainable path to offer environmental solutions.
GE also gambled that carbon would eventually be a cost, following the implementation of previous
regulatory regimes such as limiting acid rain. Although the precise way carbon would be regulated was
unknown, as it still is, the company had little doubt that regulation would happen. Rather than wait, GE
joined a climate coalition with nongovernmental organizations to press for a cap-and-trade system to
build certainty into the future.
Within the company, GE began engaging employees to see where energy savings could be found. That
might include turning off the lights when a factory was idle or even installing a switch so that lights could
be turned off. Ecomagination sold solutions within GE, whether the project involved installing LED lights
on a factory floor, recycling water at a nuclear facility or offering combined heat and power generation
units at a plant in Australia. Within GE, managers began to be measured on how much energy savings they
had achieved.
Impact: The company so far has saved $100 million from these measures and cut its greenhouse gas
intensity — a measure of emissions against output — by 41%, according to the company’s sustainability
report. The work inside GE became a proof of concept to external customers grappling with similar issues.
Ecomagination targeted C-level executives to build this business, since most problems cut across divisions
(improving energy efficiency, for example).
So far GE has invested $4 billion in this effort, much of it in research and development. But it reaped sales
of $17 billion in 2008, up 21% from a year earlier, and is striving for $25 billion in sales in 2010.
1. Describe the 3 Strategic Management Process GE used (please use terms that we had discussed
in class).
2. Explain the need for integrating and the use of strategic management for GE (Give 3 examples).
3. Please list 5 examples of strategic management that GE either can use or already is using.
4. What is the strategy formulation, implementation, and evaluation activities that GE can
potentially use to make its innovation better than what it is now (Give 3 recommendations).
5. If .
The document provides an overview of some of the most admired companies according to Fortune magazine. It discusses that these companies excel in areas like innovation, management quality, employee talent, product/service quality, long-term value, financial soundness, social responsibility, and use of corporate assets. It also notes that these companies focus on using technology to reduce costs and improve processes. The companies have been able to generate high stock returns due to their ability to create value for customers, employees, and other stakeholders, which allows them to generate strong cash flows.
Dynamic Capability Concept Of Strategic ManagementAlison Hall
The document discusses the dynamic capability concept of strategic management. It defines dynamic capability as an organization's ability to integrate internal and external competencies to manage rapid environmental changes. This concept extends the resource-based view by allowing organizations to adapt to technological changes. Dynamic capabilities provide competitive advantage through innovation, but are not easily transferable between organizations.
Double Performance Prism: innovation performance Measurement systems for manu...AM Publications
No performance measurement system currently takes into account the innovator dilemma which consists of the necessity of balancing between the exploratory and exploitative innovation activities. This balance remains a major challenge in innovation management. Although small and medium enterprises account for 95% of firms in developed countries, according to Web of Science database, only 1.5% of research papers on innovation and 0.5% of research papers on performance measurement focus on small and medium enterprises. Drawing on the Performance Prism of Andy Neely, this paper develops an innovation performance measurement system for manufacturing small and medium enterprises in order to achieve a balance of exploration and exploitation activities. This model, known as the Double Performance Prism, is based on stakeholder theory. It considers innovation as a solution to customers’ expressed and observed needs. It has been implemented in two manufacturing small and medium enterprises. As key results, an innovation success map and a 10-indicator Innovation Scoreboard emerged from the research and implementation. The aim of these results is to foster the development of an ambidextrous organization. Further quantitative studies will be necessary to validate the proposed innovation map.
This document summarizes a paper on non-quantitative measures for evaluating companies. It discusses:
1) Criticism of accounting information used for evaluations and limitations of popular valuation methods like discounted cash flow.
2) Identification of "value drivers" or non-financial factors that impact company value, including human capital, customer loyalty, and business relationships.
3) Emphasis on the important role that human factors like workforce, organization, and loyalty play in company valuation beyond just financial metrics.
The document discusses the adoption and use of the Balanced Scorecard performance measurement tool in Indian companies. It finds that around 45% of corporate India has adopted the Balanced Scorecard, which is comparable to its adoption rate in the US. Indian companies tend to focus most on the financial perspective but also include other perspectives like customers, internal processes, and learning/growth. The document evaluates the key benefits and challenges of implementing the Balanced Scorecard in Indian firms.
This document discusses value-based management (VBM) and its implementation. It defines VBM as a management approach that puts shareholder value creation as the core philosophy. VBM is intended to effectively link strategy, measurement, and operations to create shareholder value. The document outlines the generic VBM framework, key value drivers, example metrics like EVA and ROIC, and challenges in implementing VBM like gaining manager buy-in. It provides examples of successful VBM implementations at companies like Coca-Cola and notes that top management support is critical to smooth adoption of VBM.
This document provides an overview of seminar 2, which focuses on aligning strategy and marketing planning processes. It discusses key concepts like an organization's mission, values, vision, generic strategies, and core competencies. The seminar includes a guest speaker from Loadimpact.com and an assignment where students analyze Loadimpact's mission statement, strategy, and recent marketing activities to evaluate how well its actions align with its stated goals and values.
This document provides an introduction to the Beyond Budgeting Round Table (BBRT) model, which was developed as an alternative to traditional annual budgeting processes. It describes how the traditional budgeting model is no longer effective in today's rapidly changing business environment. The BBRT studied companies that had successfully moved away from budgeting and developed a new management model based on their best practices. This model emphasizes devolving accountability, adapting to changes, and using management processes better suited for the current business climate. The document outlines the key principles of the BBRT model and how it can help organizations overcome barriers to change and achieve sustained success.
Vodafone Group uses a balanced scorecard approach to manage performance across financial and non-financial perspectives. It has four main strategies: drive operational performance to enhance customer value; pursue growth in mobile data, broadband, and enterprise services; execute in emerging markets through low-cost offerings; and strengthen capital discipline to drive shareholder returns through cost efficiency programs. Key performance indicators are tracked across four perspectives: customer, financial, internal processes, and learning/growth. This balanced approach helps Vodafone make strategic decisions and continuously improve performance.
Stephan wants to make the living room and bathroom warmer on a cold March evening. The document outlines Stephan's preferences for the evening of March 3rd at 19:45 when it is 5 degrees Celsius outside - he wants the living room and bathroom to be cozier and warmer. Specifically for the bathroom, he prefers underfloor heating over radiators. The following slides will provide a paper prototype concept for controlling the temperature in these rooms to meet Stephan's conditions.
Green Bikes International Presentation FH WELS, Austria Manish Abraham
Green Bike is a research project held
at the University of Applied Sciences Upper Austria (FH Wels), that was aimed to develop a concept electric bike by following the development process model with reference architecture for embedded systems based on the Architectural blueprint for CIM Data base.You can read more at http://greenbikes.manishabraham.com/
The document describes a trainer bike designed for children ages 1-5 years old. It summarizes the key features of the bike, including that it has a steel frame and polymer wheels, weighs just over 2 kilograms, and has a 25 kilogram weight limit. It also describes different tests that could be done on the bike, including a weight test to determine the bike's structural integrity, a crash test to simulate crashes, and a long term test using rollers to simulate long term usage and exposure to different environments and stresses.
The document discusses testing various aspects of beamers and projectors, including:
- Measuring LCD memory effect by displaying test pictures for increasing durations and checking for darker spots.
- Testing lamp durability by frequently turning the projector on and off to shorten the test time and ensure the lamp lasts the designed 5000 hours.
- Testing resistance to different humidity and temperature conditions by placing the projector in a climate chamber and recording its status at various temperature and humidity levels.
- Testing the cooling fan by finding the projector's critical temperature and ensuring it shuts down before overheating to prevent damage from high temperatures.
Test pattern-for-lcd memory effect in projectorsManish Abraham
This document provides technical test patterns that can be used to calibrate and test video equipment, including color bars at different percentages, tone tests, lines, and black screens. The patterns are arranged from left to right and top to bottom to allow testing of the entire screen area.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
The Universal Account Number (UAN) by EPFO centralizes multiple PF accounts, simplifying management for Indian employees. It streamlines PF transfers, withdrawals, and KYC updates, providing transparency and reducing employer dependency. Despite challenges like digital literacy and internet access, UAN is vital for financial empowerment and efficient provident fund management in today's digital age.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Economic Risk Factor Update: June 2024 [SlideShare]
balance-score-card-for-tesco
1. The Balanced Scorecard
Tesco PLC
This essay presents an analysis of the way in which Tesco
implement the balanced scorecard. The strengths and
hindrances associated with this approach have also been
outlined with respect to this particular case study. The 4
perspectives of the balanced scorecard are examined in
detail, the conclusions of which are later divulged.
By Manish Abraham
3. The Balanced Scorecard
Financial
Vision & Internal
Customers Business
Strategy
Processes
Learning &
Growth
Page 3 of 23 Manish Abraham
4. The Balanced Scorecard
Introduction to the Balanced Scorecard
The Balanced Scorecard was first developed in the early 1990s by two researchers: Kaplan
and Norton (2001). The researchers Marr and Adam (2004) found that the balanced scorecard
was designed to be used as a strategic performance measurement and management
framework. Kaplan and Norton (1996) describe the originality of the balanced scorecard as:
“The balanced scorecard retains traditional financial measures. But financial measures tell the
story of past events, an adequate story for industrial age companies for which investments in
long-term capabilities and customer relationships were not critical for success. These
financial measures are inadequate, however, for guiding and evaluating the journey that
information age companies must make to create future value through investment in
customers, suppliers, employees, processes, technology, and innovation" (p.7).
In recent years, balanced scorecards have been proposed and widely used to measure
organisational performance from four different perspectives that help companies focus on
their critical areas, and to translate their strategy into action (Seraphim, 2006).
The balanced scorecard proposes that the organization is viewed from four perspectives, and
metrics, that it should collect information and examine it in relation to each of these
perspectives; Kaplan and Norton (2001) urged people to view the organisation from four
perspectives (the financial perspective, the customer perspective, the internal business
process perspective, and the learning and growth perspective). “These perspectives are
interlinked and layered: so that financial results are determined by customer satisfaction,
which are in turn determined by internal processes and, underneath these three layers, is the
foundation of the learning and growth perspective”(Marr and Adams 2004). The causal
relationship between these perspectives can then be visualised in strategy maps (Marr and
Adams 2004) p.18.
Page 4 of 23 Manish Abraham
5. The Balanced Scorecard
However, according to Marr and Adams (2004) a major weakness in the balanced scorecard
is the learning and growth perspective. The researchers Marr and Adams (2004) believe that
this latest attempt to evolve the balanced scorecard by Kaplan and Norton might have had an
adverse effect. Marr and Adams outline how Kaplan and Norton failed to acknowledge the
large body of writing on intangible assets and, therefore, produced an inconsistent,
incomplete, and potentially very confusing classification of intangible assets. However, in my
opinion the balanced scorecard also has other weaknesses, which mean that the balanced
scorecard will not always guarantee success. Many companies fail to put the required
measurements in place to make the balanced scorecard a success. Two reasons for this may
be:
(a) Time
The balanced scorecard takes time to implement and many companies may not have
the time or the sufficient resources to properly invest in this performance
measurement.
(b) Fee
It can be costly to implement the balanced scorecard. The organizational will have to
ensure that all employees are sufficiently trained and if they are not they will have to
send them on training courses which is costly. They may also have to improve their
production processes i.e. having new, up to date technology and machines that are of
high quality.
Page 5 of 23 Manish Abraham
6. The Balanced Scorecard
The Balanced Scorecard Today: Tesco PLC
Tesco was founded in 1919 by Jack Cohen when he began selling surplus groceries from a
stall in the East End of London (Tesco 2009). In 1932, Tesco Stores Limited became a
private limited company (Tesco 2009). Tesco floated on the stock exchange for the first time
in 1947 with an initial share price of 25p (Tesco 2009). Tesco introduced the Clubcard in
1995, which is a loyalty card for customers (Tesco 2009). This card has helped Tesco
evaluate its customers.
“Tesco is the UK’s leading food retailer in an extremely competitive market” (Vignali 2001).
For this reason it decided to expand operations across Europe, which also included expanding
to Ireland. According to Vignali (2001), Tesco entered the Irish food retail market by
choosing to purchase all Quinnsworth, Crazy Prices and Stewart’s stores in Ireland.
Tesco plc currently employs over 470,000 people across 14 countries (Tesco 2009). In 2009,
Tesco’s turnover exceeded £1 billion per week over the 12-month period (Microsoft, 2010).
The current share price is 427.55p, which exceeds its leading competitors share price of
332.40p (Tesco 2009). The company’s major shareholder is Legal & General Assurance
(Pensions Management Limited) (Tesco 2009). Tesco floats on the London Stock Exchange
under the symbol TSCO and it also floats on the Irish Stock Exchange as TESCO PLC.
While most people call their strategic planning and management systems a balanced
scorecard (Witcher and Chau, 2008), Tesco call it the Steering Wheel (Tesco 2009). This
organisational tool centers their business on the delivery of their core purpose (Tesco 2009).
The only difference is that there are five perspectives instead of four; the fifth perspective
being community (Tesco 2009). The editors of Strategic Direction (2009) found that at Tesco
“performance is reported quarterly to the board, and a summary report sent to the top 2,000
managers to cascade to staff” (p.5). The salary of senior management is created by the KPIs,
Page 6 of 23 Manish Abraham
7. The Balanced Scorecard
with bonuses established on a descending scale according to the level of success on the
steering wheel (Editors of Strategic Direction 2009)
However, according to ICMR (2005), Tesco’s ‘Steering Wheel’ was so successful in
fulfilling the company’s strategic objectives that the company forgot about HR policies and
procurement policies when the company began to grow rapidly. This resulted in Tesco paying
unduly low wages and having a high absenteeism rate. The balanced scorecard does appear
to have been a great success for Tesco as it is the largest British retailer.
Page 7 of 23 Manish Abraham
8. The Balanced Scorecard
Financial Perspective
“The Financial Perspective covers the financial objectives of an organisation and allows
managers to track the financial success of a company for example how wealth is created for
shareholders” (Advanced Performance Institute 2010). However, despite the need to provide
a balanced approach to performance measurement, companies remain focused on traditional
financial measures (gross revenue, profit before tax, and cost reduction) and often forget
about intangible assets (Chia, Goh and Hum 2009). According to Valiris, Chytas and Glykas,
(2005) financial measures remain an important dimension within the balanced scorecard.
The Financial perspective measures whether a company's strategy, implementation, and
execution are contributing to bottom-line improvement (Valiris et al. 2005). The financial
perspective focuses on traditional return-based efficiency and effectiveness metrics
(Punniyamoorthy and Murrali 2008).
In order for Tesco to meet its target profits in 2009 it decided to charge elevated prices in its
Irish stores at the beginning of the year (Cullen 2009). Cullen (2009) also found that Tesco
then lowered their prices from March on 11 Border stores in preparation for a price war
against competitors. For Tesco to achieve its profit targets for 2009 it had to make up to 100
employees redundant at its Irish headquarters in Dún Laoghaire (Cullen 2009). In 2008,
Tesco had a profit margin of 9.3 per cent in Ireland, while its profits were €248 million and
2009 profits were projected to rise to €255 million (Cullen 2009). Tesco have reduced their
costs in order to increase sales revenue. These figures may look great to the shareholders in
times of economic downturn but for Tesco to cut their prices they more than likely put
pressure on their suppliers (especially Irish suppliers) to reduce their prices. This in effect can
put some suppliers out of business. Tesco have also reduced their direct expenses by cutting
employee hours and introducing self service scan tills into most of their stores. This may have
benefited Tesco’s bottom line but it has made its employees threaten strike action.
Page 8 of 23 Manish Abraham
9. The Balanced Scorecard
Tesco’s main competitor in the UK is Sainsbury’s. Tesco is appealing to shareholders as it
achieving a return on capital employed of 15%, while its competitor (Sainsbury’s) is
achieving a return on capital employed of 9% (Appendix1). The absolute difference between
these returns on capital employed is 6%, which means that Tesco is the more profitable
company. The relative difference is 66%, which indicates that Tesco are 66% more profitable
than Sainsbury’s. Tesco paid out a final dividend of 8.39p (Tesco 2009) to its shareholders at
the end of 2009, while its competitor Sainsbury plc paid out a dividend of 9.6p (Sainsbury plc
2009). Tesco has a policy of not paying their trade creditors for 54 days, which in turn puts
pressure on their suppliers. Tesco’s group sales have increased by 7,000 since 2008 (Tesco
2009), while Sainsbury’s increased by 1,000 from 2008 (Sainsbury plc 2009). Tesco should
be given credit for their increased sales during tough economic times but to achieve these
sales they have had to cut prices, which means that they would have also undercut their
suppliers. Tesco’s net profit percentage has an absolute difference of 3% when compared to
Sainsbury’s (Appendix3). The relative difference is 88%, which signifies that management in
Tesco are controlling their costs more efficiently than Sainsbury’s. This is evident in that
Tesco have cut wages, which would increase Tesco’s net profit.
Page 9 of 23 Manish Abraham
10. The Balanced Scorecard
Customer Perspective
“In the customer perspective of the Balanced Scorecard, managers identify the customer and
market segments in which the business unit will compete and the measures of the business
unit’s performance in these targeted segments” (Kaplan and Nortan 1996, p26). According to
Kaplan and Norton (1996) the customer perspective, if implemented correctly, should have
successful outcomes such as customer satisfaction, customer retention, customer profitability,
new customer acquisition and market share in targeted segments. It also enables companies to
measure and identify the value propositions (unique mix of product, price, service,
relationship etc., offered to customers) that they will deliver to targeted customers and market
segments (Kaplan and Norton 1996). For this to work, businesses must identify the market
segments in their existing and possible customer populations and then they must identify
which segment they are going to compete in (Kaplan and Norton 1996). However, for many
companies this may be difficult to implement but for Tesco it is easier as they have a value
clubcard, which enables them to identify what their customers want.
According to Liptrot (2005) Tesco attracts 15 million customers per week. When Tesco
implemented the ‘Steering Wheel’ they appealed to all segments of the market instead of
focusing on certain segments (Liptrot 2005). Tesco wanted to gain customer satisfaction and
in order to do this; they decided to cater for all incomes. Tesco offer three distinct ranges of
own-brand products to satisfy all their customers (Tesco 2009).
It is far cheaper for Tesco to keep its customers than it is for it to gain new ones. Tesco
launched a Loyalty Clubcard in 1995 (Tesco 2009). The information gained by Tesco from
its customers using the Clubcard allows them to understand their customers and offer them a
variety of coupons to suit their needs (Tesco 2009). It was also found by Turner and Wilson
(2006) that there was a positive moderate relationship between the Clubcard returns and
customer loyalty. In May, Tesco offered a Double Up scheme, giving card holders a chance
Page 10 of 23 Manish Abraham
11. The Balanced Scorecard
to turn vouchers into twice their face value, this incentive drew 500,000 extra shoppers in
(Mirror 2009).
Tesco also retain customers by marketing online grocery shopping as a convenience to its
customers (Delaney-Klinger et al. 2003). This allows shoppers to shop from the comfort of
their home and have their purchases delivered to their door. According to Rowley (2003)
Tesco online (tesco.com) has developed a sophisticated and extended shopping experience
which sets new standards for retailing. If a customer has signed up for online shopping then
they will receive offers on a regular basis. For example, they may receive free delivery codes
to encourage people to shop with them.
In the three months to November 2009, Tesco’s market share rose to 30.7% from 30.6% in
the same period in 2008 (Finch 2009). Tesco’s sales increased in 2009 with a growth rate of
4.7% compared with a market growth of 4.4% (Finch 2009), which indicates that they
acquired a great deal of new customers in 2009. Tesco took on board the fact that families
were experiencing financial difficulties due to the current economic climate and targeted
those areas which dually increased their market share.
Page 11 of 23 Manish Abraham
12. The Balanced Scorecard
Internal Business Process Perspective
In the internal business process perspective, managers identify the important internal
processes that the business must succeed in, in order to implement its strategy (Drury 2004).
Metrics based on this perspective let managers measure how successful their organisation is
doing and whether its goods and services conform to customer needs (Papenhausen 2006).
The internal business process measures should focus on the internal processes, which the
organisation will need to achieve its customer and financial objectives (Drury 2004).
According to Chavan (2009) a “well-oiled machinery” of internal processes is important in
any business, and may not always correlate with external perceptions. Internal business
processes are identified by three principal processes which are: innovation processes,
operation processes and post-service processes (Drury 2004).
Innovation:
The product development manager for Tesco is Seaneed O’ Neill (bbc news 2002). Seaneed
O’Neil is constantly on the lookout for the latest trends regarding the food market so that it
can be developed into a new line in Tesco (bbc news 2002). The latest range that Tesco have
delved into is the healthy eating market with its finest range. The design and development of
these new products can be timely for the organisation as they have to source suppliers and
conduct market research (bbc news 2002). The company then has to measure the payback
period of the new product and the sales from the new product (Drury 2004).
Operations Process:
Traditionally, the operations process has been the major focus of an organisation’s
performance measurement system (Drury 2004). Tesco needs to manage its transport better
as it has 2,000 trucks (Tesco 2009). They identified issues with their drivers and fleets so they
Page 12 of 23 Manish Abraham
13. The Balanced Scorecard
decided to start up a ‘Managing Transport Better’ project to reduce the cost of transport and
to have one standard way across their depots (Tesco 2009). According to Tesco (2009) it
saved millions of pounds on this project as it improved the efficiency of its systems by
trailing the improvements over three months. Tesco then rolled out the new routines across
the depots.
Supplier Processes:
“However, the fact that a handful of supermarkets control access to consumers means that
they are increasingly in a position to exercise buyer power” (Fearne, Duffy and Hornibrook
2005) p571. According to Irish Times journalist Cullen (2010), Tesco has been demanding
millions from Irish suppliers in return for the sustained stocking of their items on Irish
shelves. Tesco are putting great pressure on their suppliers, which may in turn push Irish
suppliers out of the market (Cullen 2010). Cullen (2010) also found that if suppliers did not
pay the sum demanded by Tesco then the space allocated to the supplier’s products in store
would be significantly reduced. According to Cullen (2010), suppliers have suggested the
demands by Tesco may have something to do with improving its figures as Tesco’s financial
year runs to the end of February.
Tesco’s financial year runs to the end of February, which has made suppliers believe the
demands by Tesco are a move to improve its figures before the year end. It has been a
difficult trading year for Tesco as the retail market is down by 7 percent and profits have tight
due to the price war (Cullen 2009)
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14. The Balanced Scorecard
Learning & Growth Perspective
The learning and growth perspective includes employee training and employees learning
from within the organization so that the company will continue to please customers in the
future (Drury 2004). According to the Balanced Scorecard Institute (2010), learning and
growth metrics can be put into place to guide mangers in centering training funds where they
can help the most in the organisation. Kettunen (2005) presented in his research paper that the
learning and growth perspective included three principles: “the capability for R&D”,
“environmental scanning and customer knowledge” and “quality and assessment capabilities,
and in-house training”.
Tesco employs staff from a multitude of different backgrounds and all employees are given
the opportunity to develop in tandem with the company. The majority of companies fail to
measure the outcomes of learning and growth but Tesco are different as it regularly measures
the performance of its staff. Employees are able to apply for training through yearly
appraisals to improve their knowledge and skills (Thetimes100 2010). However, it has been
noted that training is not one of Tesco’s primary focuses.
According to Tesco (2009), training is tailor to its employees. They treat their employees like
they treat their customers as persons with their own specific requirements (Tesco 2009).
Tesco (2009) have a off the job training and development program known as ‘Options’.
Options is an accommodating program that is tailored to the employees needs, which can last
between 6 months to 2 years (Tesco 2009). This program aims to develop a combination of
broad skills, leadership and operating skills through off' the job experiences and a clear
procedure that is designed to provide clear feedback and schooling (Tesco 2009).
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15. The Balanced Scorecard
Tesco also offer their staff on the job training (Thetimes100). On the job training techniques
would include shadowing, coaching, mentoring and job rotation (Thetimes100). The method
of shadowing is used for many reasons but it is mainly used for the training of cashier staff
and aisle staff. The trainee employee is shadowed by a more experienced employee until they
are competent in their new role. On the job training is directly related to the employees work
and is usually favoured over off the job training as it is cheaper for Tesco to implement
(Thetimes100). The researchers Van Der Klink and Streumer (2002) found that from a study
of on the job training, the results of the study were only partially successful in realising
training goals. On the job training may not be a great success as more experienced employees
often see it as a way to reduce their work load.
Hayman and Lorman (2004) found that most graduates entered companies directly from
further education and had a solid academic background. They found that training made sure
graduates were prepared with a working knowledge to complete their job role (Hayman and
Lorman 2004). Tesco offer graduate programmes where the employees training depends on
its graduate programme (Tesco 2009). Tesco (2009) also provide training in specialised areas
for example in Finance they offer to pay for the employees CIMA qualification.
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16. The Balanced Scorecard
Conclusion
“Although there are some criticisms concerning the balanced scorecard approach, many of
these seem to represent problems of practical application rather than fundamental flaws”
(Atkinson 2006).
The ‘Steering Wheel’ strategy has assisted Tesco in accomplishing big goals by breaking
them down into smaller, more achievable goals. While Tesco have achieved their targets for
2009, the manner in which they have done so can be considered to be slightly furtive,
including demanding money from suppliers for shelf space in their shops.
Even though Tesco’s employee training programmes are held in high regard, training is not
their primary concern. Instead Tesco adopt a more customer-oriented focus, with the
intention of getting customers into their store in any conceivable way. The fact that Tesco
have delved into new markets, e.g. healthy eating, in order to satisfy their customers’ needs,
exemplifies the above statement. In general, the balanced scorecard has proven to be an
effective and successful tool, in the achievement of Tesco’s respective goals.
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17. The Balanced Scorecard
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18. The Balanced Scorecard
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Appendix
1. Tesco plc Sainsbury plc
09 08 09 08
ROCE 15% 12% 8.63% 8.19%
2. Tesco plc Sainsbury plc
09 08 09 08
Gross Profit % 7.76% 7.67% 5.48% 5.62%
3. Tesco plc Sainsbury plc
09 08 09 08
Net Profit % 6.3% 6.5% 3.2% 3.4%
Working Capital Ratios
4. Tesco plc Sainsbury plc
09 08 09 08
Stock Turnover 19.6 times 20 times 26.1 times 26.5 times
Liquidity Ratios
5. Tesco plc Sainsbury plc
09 08 09 08
Current Ratio 0.75:1 0.58:1 0.54:1 0.65:1
Gearing Ratios
6. Tesco plc Sainsbury plc
09 08 09 08
Debt/Equity 1.17:1 0.68:1 0.63:1 0.51:1
7. Tesco plc Sainsbury plc
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23. The Balanced Scorecard
09 08 09 08
Interest Cover 7.18 times 12.21 times 4.15 times 4.63times
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