In: Finance
Question # 5: ABC Inc. is a retail company offering primarily
FMCG products in consumer
market. The company aims to grow by using Merger and Acquisition
with other smaller
companies within the industry. Furthermore, organization is focused
on lowering expenses
via automation. The company also focuses on improving profitability
via increasing access
points and purchase options. The company is also utilizing Big Data
to analyze consumer
behavior and mapping consumers needs. To achieve these parameters
the company
developed knowledge sharing and strong talent management practices
within the company.
With adoption of Industry 4.0 and green operations the company has
stepped on the right
path to achieve excellence. Using Business Scorecard method to
evaluate its strategic position
and reflect on its strategic effectiveness?
Balance scorecard is method of performance metrics determination for improvement in various aspect of business of a company including financial aspect, consumer aspect,internal processes aspect, and organisational training aspect.
Business scorecard method in ABC retail company would be as follows-
A. Financial perspective-the company should be focused to to increase the overall rate of return of profits to the shareholders and increase the return on investment and operating margin along with return on equity.In this case the company is improving profitability via increasing access points and purchase options.
B. Customer satisfaction-it can be seen that this company is trying to provide with analyzation of customer behaviour and mapping consumer needs so this company is trying to provide with the customer satisfaction.
C. Internal processes-it can be seen that this company is trying to to achieve developed knowledge sharing and it is trying to improve the internal processes through knowledge sharing.
D. Organisational capacity-this will include the training and other improvement of human resources and the company is trying to increase the strong talent management practices with adoption of green operation.
So, it can be seen that the company is trying to perform on every aspect of balanced scorecard