week 22

Week 22

1.      What is your understanding on the Balanced Score Card approach? How useful is it for the Companies?

The Balanced Scorecard enables organizations to bridge the gap between strategy and actions engage a broader range of users in organizational planning, reflects the most important aspects of the business, and respond immediately to progress, feedback and changing business conditions. The Balanced Scorecard can be a great help used as a strategic tool, a management methodology or / and a measurement system.( www.hbr.org)

2. Identify and list the 20 important KPIs of Balanced Score Card.

The 20 important KPI's of Balanced Score Card are:

·             Return on capital

·             Economic value added

·             Sales growth

·             Cost reduction

·             Customer satisfaction

·             Customer retention

·             Acquisition of new customers

·             Manufacturing Cost

·             Job turnover

·             Product quality

·             Stock turnover and inventory management

·             New product development record

·             R&D core competencies

·             Employee retention

·             Employee profitability 

·             Salary competitive ratio

·             Customer profitability

·             Customer turnover ratio

·             Human capital added value

·             Leaver attitude score

3. Present your thoughts and understanding on the article “The Strategic Management process’’

The article elaborates the need for strategic change in the Ford motors company. As Ford motor was making huge loss and the market share were been taken by Nissan and Toyota, the management team initiated a strategic decision to terminate 20,000 employees.

The article, “The Strategic Management process” explains the process involved on strategic management. (www.leg.u-bourgogne)

Likewise, the strategic objectives and goals are set to various departments for the achievement of the organization’s mission. The organization’s mission is divided into different parts in order to make sure that each department contributes in fulfilment of the organization’s goals.

This article has shown the 7 steps of strategic management which are mentioned below:

Step 1: Defining Current Business

This step of strategic management process precisely defines vision and direction of the business as well as answers what business the firm should be in and the strengths and weakness, threats and weakness of the company.

Step 2: Perform Internal and External Audit

In this stage SWOT analysis is conducted which determines the company’s strengths, weaknesses, opportunities and threats.

Step 3: Formulating New Business and Statements

In this step new vision and mission are generated by analyzing the situation of the business and also determines what and where new business should sell along with the competitor difference.

Step 4: Translate the Mission into Strategic Goals

In this step missions are changed into strategic goals.

Step 5: Formulate Strategies to Achieve Strategic Goals

In this stage clear and concise strategies are made.

Step 6: Implement the Strategy

In this step strategies are converted into action and results. Even management functions are drawn and applied in this stage.( www.sujo.com.au)

Step 7: Evaluate Performance

This is the last stage which evaluates the performance by implying strategic control.

Reference:

(n.d.). Retrieved from www.hbr.org: http://hbr.org/1993/09/putting-the-balanced-scorecard-to-work/ar/1

(n.d.). Retrieved from www.leg.u-bourgogne.fr: http://leg.u-bourgogne.fr/wp/1080902.pdf

(n.d.). Retrieved from www.sujo.com.au: http://www.sujo.com.au/_docs/We-B00280.pdf