Question

Explain the Financial perspective as one of dimension of the balanced scorecard for hotel business

Answer 1

The financial perspective as a part of the balanced scorecard for a hotel business deals with the meeting of financial expectations of the shareholders. It starts with the increase in revenue & net profit for the business. It can be achieved when new product range and exclusive services are offered to the consumers. Exclusive treatment to the returning customers create loyalty and it translates into higher revenue and profit. Then, the next expectation is to the increase the efficiency that can be done by reducing operational expenses, reducing wastages and streamlining of the process in hotel operation. Proper management of inventory is also required to deliver the efficiency. It helps to deliver the services at relatively lower cost. So, expenses come down and efficiency increases. The next expectation is the optimum utilization of resources so that maximum productivity is achieved. It is another indicator of the superior performance of the business. Finally, all these growth dimensions, should have the increasing trends and translated to the increased size of the market share. It realizes the visions of the hotel business where it wants to be in the near future.

Reference:

Balanced Scorecard Example for Hotel Top Management. Retrieved from: https://bscdesigner.com

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