SCORECARD STRATEGY 1

SCORECARD STRATEGY 2

Shannon Foreman

Strategic Management in Dynamic Environments (MGMT 690)

Scorecard Strategy

Colorado Technical University

June 7, 2017

Balances Scorecard and Global Strategy

Balanced scorecard refers to a management system that is used by the management of companies for several purposes. Balanced scorecard is an important tool for measuring and monitoring how the company is progressing towards the strategic goals. The Balanced scorecard also is used by the management to create priorities for products, services as well as projects. Projects as well as products and services need to be carried out in priority order. The balanced scorecard ensures that, priority projects as well as products are carried out first, before projects and products less in priority. The Balanced scorecard also ensures that, the daily tasks for all the employees are executed according to the strategies set. Moreover, the balanced scorecard ensures communication of strategies to employees so that the workers have a clear picture of what their targets are.

Four Perspectives of The Balanced Scorecard

1. Learning and Growth Perspective

The learning and growth perspective is concerned with capabilities of the employees of the organization. The management should focus of ensuring development of the capabilities of the employees in the organization. The employees should be empowered to get more skills and knowledge. They should be given an opportunity to advance in their career. This will also improve the labor productivity. The managers should be evaluated on achievement of this perspective through measurement of employee productivity, employee retention and employee satisfaction. The employee satisfaction for instance is an important indicator of the morale of workers for the improvement of responsiveness, customer satisfaction, quality of output as well as productivity (Tjader, May, Shang, Vargas & Gao, 2014). The managers should conduct employee satisfaction survey by observing employees while working, interviewing them and giving them surveys documents. Employee retention shows the capability of the organization to maintain its human capital to provide services for the organization for long. The employee retention should be measured to indicate the extent of employee empowerment. Employee productivity is also an indicator of output per employee. The management should measure the employee productive as an indicator of employee learning and growth.

2. Internal Business Perspective

In the internal business perspective, the management is required to establish the internal processes that are critical to the company and that it must perform well in. These are the activities that make the organization capable of delivering the core values and therefore attracting and retaining customers and therefore the market share as well as giving proper financial returns to shareholders. There should be sufficient control in the organization so as to enable reliability and consistency in product and service quality. To attain consistent high performance, the inputs must be actively controlled (Tjader, May, Shang, Vargas & Gao, 2014).

3. Customer perspective

The management should identify the customers and market segments that are targeted and where the company will compete and then formulate best measures to be adequately competitive. The attainment of this perspective is measured through indicators such as market share, customer profitability, acquisition of new customers, customer retention as well as customer satisfaction. The perspective should also measure the values that are geared towards delivering to the targeted customer and market segments.

4. Financial perspectives

The financial perspective requires the use of measures of financial performance such as return on investments and Net profit to measure progress (Rabbani, Zamani, Yazdani-Chamzini, & Zavadskas, 2014). These financial measures can be used as a basis for comparing between different companies. Funding organizations and institutions depend heavily on financial performance in the decision-making process on whether to advance funds to a company. the management is therefore supposed to use such financial measures to determine the success of the organization. Below is a diagram showing the interlink between the four perspectives.

Strategies That Would Be Good for John and Deborah

John and Deborah Corporation need a global strategy. The global strategy involves establishing shops in other parts of the world. This strategy therefore expands the market share of the company. with new customer regions, the sales of the company would increase and therefore increased growth and expansion. There are several strategies that are important while pursuing the global strategy.

A. Adoption of a clear product strategy- while pursuing global strategy, it is important for the company to adopt a clear product strategy. it is important to design a product that allows expansion into the global market in terms of quality and customer reception (Peng, 2016). The products should first be tested in the United States before they are tried in in the global market, such as France, Germany and the United Kingdom. This is to identify and incorporate needed changes.

B. Profit plough-back- while pursuing the global strategy, it is important to ensure profit plough back. The management should reinvest the earnings so as to expand the size of the product portfolio. This is because, the global market is full of competitors and a bigger sized firm would offer more competition than a small sized one (Peng, 2016).

C. Partnering with other firms- the company may also consider partnering up with other firms, offering the same products in the market. This minimizes risks and increases overall profitability (Peng, 2016). Partnering is also crucial since John and Deborah would utilize the distribution channels of the already established firms to penetrate into the global market.

The importance of having more than one strategy in mind when pursuing global expansion

While pursuing the global strategy, having more than one strategy in mind is important for diversification. This is because, if one strategy fails, then the management would try the others. it is safer to have more than one strategy, than having a single strategy. a single strategy could fail. If one fails, other act as alternatives.

References

Strategic Management in Dynamic Environments (MGMT 690)

PROJECT SERNARIO

Company Biography

In January of 2002, John Ferrer and his wife Deborah started their own corporation, a large custom furniture manufacturer located in Boston, MA. Their initial accounts were in the Northeastern region of the United States, and they annually observed a constant profit increase. By March of 2006, they were able to grow the company enough to go from five distribution and manufacturing plants to 10 to allow shipping to 48 states. Although they have two retail stores, one located in Phoenix and one in Boston, their primary source of revenue is online catalog sales. They have 10 manufacturing plants and distribution centers throughout the country.

John and Deborah’s corporation is known throughout the industry for its exceptional customer service and superior quality. The contemporary designs lend themselves to a younger market, and the customer base is predominantly upper-middle class because it is one of the highest priced furniture companies in the market. Part of the appeal of John and Deborah’s brand is their consistent involvement with the local communities to create green gardens. They have also been a major contributor to organizations that build houses for people in need.

One of their primary strengths is their vertical integration. They have a team of in-house designers saving the company design costs and allowing the flexibility to rapidly change designs as the market changes. Their products have been featured on several prominent home design and gardening shows and have been endorsed by several well-known designers.

Because of the recent housing market sales decline (8% from 2005–2006), home renovations have slowed significantly. This has impacted the amount of furniture and fixture sales and continues to impact revenue. Furniture sales in the United States have decreased significantly, and John and Deborah have recently been discussing the possibility of global expansion.

Another potential threat to their company is that many higher-end brands have been marketing aggressively and creating lines for popular retail stores. These allow the lower-income consumers to have access to high-end brands at a much lower price point. So far, these lines have been incredibly successful and have significantly increased profits for competitors. Many of these competitors have also had great success in the global marketplace with these lower cost replicas.

John and Deborah know that it is time to seriously consider expanding their business. They want to be able to make it through the economic crisis and rely on other ways to increase sales and business. They are open to looking into the global market, but they want to be sure that it is the right move for the business. They have requested an advisory board meeting next month in which you will present the global marketing strategy. As the market strategist, you will play a key role in helping the board decide if this is the right move for the company.

The Problem

You are sitting in Deborah Ferrer’s office. After the customary small talk, Deborah sits forward and states, “I am very impressed with the work that you have done as the strategic marketing manager. Since John and I started this company in Boston, we have seen continuous growth, but nothing like what we have seen since you started. However, the housing market is really starting to impact our profits. This last quarter’s numbers were not looking good.”

You reply, “The crisis has really hit us hard. We have some stiff competition, too, with the other brands creating retail knock-offs.”

She counters, “We’ve had great success with your strategies in the domestic markets, but we do need to think of a new approach and strategy. I have complete faith in your abilities to take this company exactly where it needs to go. I must say that we are really counting on you, and I know that you will follow through.”

“I will make sure that we do well. Do you have any new projects for me?” you ask.

Deborah smiles and says, “You know me well. I do have a new project for you. I sent you an e-mail just before our meeting. I’m curious if expanding in a global market would be a good move for our company. I would like you to look into this for me.”

“Our team is definitely up for the challenge,” you say with enthusiasm.

Deborah shakes hands with you warmly, and you make your way out of the meeting. As you drive out of the parking garage, you think about your success with the company. You cannot wait to get started.

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