Question

I would like you to take a look at a company website of your choice. The company must be publicly traded. Explore their website to learn more about the company. After researching the company answer the 4 questions listed below. Be sure to provide specific details in your post that you found on the website for the company you chose. Be sure to provide a link to the website of the company you chose to use for this assignment.

1. What do you think are the company's overall, long term goals?

2. Develop a balanced scorecard. Include two to five measures in each of the scorecard's perspectives.

3. How would the balanced scorecard affect the way managers develop the company's strategy?

4. Explain the concept of lead and lag measures in the context of the scorecard you developed.

Answer 1

For the question asked for, I am taking Royal Dutch Shell as my example. Its an British-Dutch multinational oil company, headquartered in Netherlands and incorporated in England. Its an oil and gas super major and it’s the third largest company in the world.

1) The company as per the companies website wants to,” provide sustainable fuel resources to the world without compromising on the environment”. It aims to reduce its global carbon footprint. They aim towards making world an energy efficient place, and they aim to tackle the worlds economic, social and environmental changes by 2030. They are the founding members of the UN Global Compact and they also support a number of external voluntary codes that promotes an responsible business practices.

2) Balanced Scorecard- Is an performance metric that defines the business growth, business process, customers and the finance. It deals with in-depth analysis of the company based on the above metrics. Lets discuss the balance scorecard of Shell-

· Learning and growth- Shell as an company tries to develops itself in the long run. Shell heavily researches on growth and development. They have been forefront of the digital technology since 1970s’s. Shell dynamically tries to involve according to the business needs.

· Business Process- Shell is an powerhouse in the business process. Shell deals extensively in Shell Energy marketing and trading, Energy retail, Natural Gas, New Energies: such as lower-carbon power business. The company has an revenue of $3737.6 Crores owing to huge business. The aviation industry hugely depends on the Shell industry.

· Customer Perspectives- The customers have an excellent perspective of the company. Irrespective of earning huge sums of income, the company plays an active part in its CSR activities. The shell funds the UN for social activities.

· Financial data- The financial data of the Shell is very bright. The shell is in pretty strong position due to its 1182 Shell Subsidiaries and 156 joint ventures and associations. The risk management is also well managed.

3) The balanced scorecard contains all the details of any company. The manager looks after the requisitions, Ventures, Mergers, Balance Sheets, customers perspectives etc before making an strong decision in front of the committee. All the variables of the balanced scorecards are discussed with the high level of managers before making an decision.

4) The lead and lag measures tell us weather we have achieved the goals or not. The lead measures shows us that we have achieved an vast amount of company goals. While the lag shows us that we are far behind our prescribed.