Balanced Scorecard approach of ECI Group
In this report, three companies have been selected which have been using the balance score card approach in their busienss as performance measurement and improvement tool. The ECI group, Woolworth and Wesfarmers plc have used balance score card approach. The balance scorecard approach is the part of the strategic map of these three companies
|
ECI group |
Woolworth supermarket company |
Wesfarmers plc |
|
Private owned real state organization. Company is headquartered in United states (ECI group, 2017) |
It is supermarket retail chain business. It has been providing its retail services in Australia and other countries through its systematic value chain (Woolworths, 2017) |
Wesfarmers is also supermarket retail chain business in Australia having headquartered in Perth. (Wesfarmers, 2017) |
It is the map designed with a view to make changes in the existing business structure on the basis of present and future goals. It is evaluated that strategic map focuses on the re-engineering of existing business to achieve the set goals and objective.
Balance score card of ECI Group Company
|
Particular |
Target |
Measures |
Indicators |
Initiatives |
|
Financial perspective |
Focuses on the increase of the turnover and sales of company. |
Income statement |
Financial statement and brand image of company |
Hiring of experts members and invest in capital assets. |
|
Customers perspective |
Customized the Real estate construction for better satisfaction of clients |
Focuses on the clients values and social factors |
Customers satisfaction and feedback forms |
Product mix Customized strategy |
|
Internal process system |
Re-engineering of existing process |
Increase the construction process and save the cost of process. |
Determine the target market and focus on generating cost leadership strategy. |
Install new cyber system to build strong communications. |
|
Learning and growth |
Hiring of experts. Training and development |
Implement new training and development |
Entering into strategic alliance |
Proper action plan and new systematic approach |
(Shen, Chen, & Wang, (2016).
Balance score card of Wesfarmers Group
|
Particular |
Target |
Measures |
Indicators |
Initiatives |
|
Financial perspective |
Increasing the market share and turnover |
Balance sheet and income statement |
Increased profitability and turnover of company. |
Investing more capital for expanding the busienss |
|
Customers perspective |
Use of advance cybe system in its retail chain |
Focus on the customized services to the clients |
Loyalty cards and membership approach. |
Clients oriented services. |
|
Internal process system |
Use of advance technologies to strengthen the communication |
Hiring of more experts employees at front desk. |
Reducing the cost by setting effective strategic alliance |
New system and implement new cyber chain for the better communication. |
|
Learning and growth |
Engaging more experts at front desk |
Arrangement of training program for employees to learn new |
Undertaken strategic integration technique |
Gantt chart and standards plan for employees for their target |
(Mahadevan, (2015).
Balance score card of Woolworths Supermarket
|
Particular |
Target |
Measures |
Indicators |
Initiatives |
|
Financial perspective |
Potential market share Increasing business turnover by 20% Profitability of the business by 10% in one year. |
Income statement Ratio analysis Cash flow statement |
Increased changed in the profitability and efficiency of the business. |
Investment more capital in the business. Hiring of experts members. |
|
Customers perspective |
Install new payment Gateway for clients Customized services for clients |
Customer focused value chain activities |
Loyalty card approach and membership approach. |
Clients oriented services. |
|
Internal process system |
Hiring more experts employees Focus on the communication skills of employees |
Automation in the business process system. Set new internal process for the online busienss. |
Reduce the cost of the busienss Undertake online dashboard for setting new online chain for the domestic and international clients |
Installing cyber computing mechanism Hiring IT experts |
|
Learning and growth |
Hiring IT experts |
New training program for employees |
Strategic alliance with the IT company |
Set new standards and rules for employees. |
(Lin, et al. 2014).
ECI group
- The balance score card of the ECI Group Companycovers all the potential outcomes.
- It has focused on increasing its turnover and at the same time planned to re-engineering of its existing value chain activities (Johnston, & Bate, (2013).
Woolworths Company
- The financial perspective of the BSC of Woolworths focuses on increasing the profitability and market share.
- Company focused to hire more experts employees to increase the productivity of the company.
- The financial perspective of the BSC of Woolworths focuses on expanding the busienss by increasing the turnover.
- Installing new cyber system to establish automation in the value chain activities of business (Chen, Kim, & Yamaguchi, (2014).
After evaluating the BSC of these three companies, it is inferred that BSC approach will assist organization to achieve its new objectives and goals through the set functions and strategic map.
After analysing the BSC of these three companies, it is considered that company has been used to evaluate the existing business performance of company and set the targets and goals for their busienss. However, there are several strengthen and weakness of the BSC implemented by these three companies (Boscia, & McAfee, 2014).
|
Company name |
Strength |
Weakness |
|
ECI Group |
The BSC of the ECI group focuses on the re-engineering of its existing value chain. It also set the new financial targets for company. The BSC will make easy for company to set new rules and regulation for its newly adopted business chain. |
The BSC will give only idea and performing structure to improve the existing performance. Identified issues and problems will still need to be managed by the proper strategic planning of company. |
|
Woolworths Company |
The BSC of Company has set financial target to increase its overall profitability. This BSC approach will set up the clear plan which will assist in implementing the proper projected plan. |
The main weakness of the BSC approach of the Woolworths is based on its coverage of areas. It only focuses on only four factors. Woolworth company needs to focuses on the marketing strategies as well to increase its overall outcomes of busienss. |
|
Wesfarmers Plc |
The BSC of Wesfarmers has covered all the four main segments such as financial, internal, learning and growth of the business. The assessment of four parts of the busienss will assist management to formulate effective strategies in market. |
There is several weakness of the BSC approach which Wesfarmers would have such as non-effective strategic plan, consideration of only four factors. This BSC approach will only assist Wesfarmers to increase its overall turnover. In case of expansion of business, BSC approach will not be help of organization (Baporikar, (2017). |
This above given strength and weakness of BSC approach reflects that company should assess all these four factors efficiently to improve its existing busienss performance of company. This BSC approach will help organization to prepare roadmap for its newly set objectives and also assist in achieving the same in effective manner. Company should establish proper nexus between the organization’s goals and objectives with the stakeholder’s development.
Conclusion
With the increasing ramification of economic changes and complex busienss structure, each and every company is indulged in using the balance score card approach in their strategic management. It assists companies to run business effectively and implement long term planning. Now in the end, it could be inferred that new BSC could be used by these companies to mitigate the possible issues and improve the existing performance of organization.
References
Baporikar, N. (2017). Adopting Balance Score Card in Higher Education. Decision Management: Concepts, Methodologies, Tools, and Applications: Concepts, Methodologies, Tools, and Applications, 348.
Boscia, M. W., & McAfee, R. B. (2014). Using the balance scorecard approach: A group exercise. Developments in Business Simulation and Experiential Learning, 35.
Chen, W. M., Kim, H., & Yamaguchi, H. (2014). Renewable energy in eastern Asia: Renewable energy policy review and comparative SWOT analysis for promoting renewable energy in Japan, South Korea, and Taiwan. Energy Policy, 74, 319-329.
ECI group, 2017, annual report, Retrieved on 4th April, 2018 from https://www.ecigroups.com/
Johnston, R.E. & Bate, J.D., (2013). The power of strategy innovation: a new way of linking creativity and strategic planning to discover great business opportunities. AMACOM Div American Mgmt Assn.
Lin, Y.H., Chen, C.C., Tsai, C.F. and Tseng, M.L., 2014. Balanced scorecard performance evaluation in a closed-loop hierarchical model under uncertainty. Applied Soft Computing, 24, pp.1022-1032.
Mahadevan, B., (2015). Operations management: Theory and practice. Pearson Education India.
Shen, Y. C., Chen, P. S., & Wang, C. H. (2016). A study of enterprise resource planning (ERP) system performance measurement using the quantitative balanced scorecard approach. Computers in Industry, 75, 127-139.
Wesfarmers plc, 2017, annual report, Retrieved on 4th April, 2018 from https://www.wesfarmers.com.au/investor-centre/company-performance-news/report
Woolworths, 2017, annual report, Retrieved on 4th April, 2018 from https://www.woolworthsgroup.com.au/page/investors/our-performance/reports/Reports
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
