Evaluation of Current Balanced Scorecard
Disucss about the E-Commerce And the Cloud Computing Organisation.
As discussed by Stuenkel (2018), “Amazon.com, Inc”, is identified as an American e-commerce and a cloud computing organisation founded by Jeff Bezos is headquartered in Seattle, Washington, U.S. Some of the key products of the company has been depicted in form of electronics, movies, music, games, home garden and office category. The company has been able to prove itself as one of the largest internet retailer which is able to provide when measured in terms of the market capitalization and total revenues. It has been further observed that the company was seen to be launched in the late 2017. It has been seen that at present Amazon Australia there these is no balanced score card of the company (Kristensen et al. 2017).
Some of the main discussions included in the report will be able to highlight on the areas which are seen to be related to the evaluation of the current balance sheet as per the financial perspectives, customer perspectives, internal business process perspectives, learning and growth objectives. The report will further recommend the changes and benefits, proceeding with the implementation and putting forward the necessary considerations in the reporting elements (Kousha and Thelwall 2016).
|
Strategic Objectives |
Performance Measures |
Evaluation of Measures |
|
Financial Perspective The evaluation of the present balanced scorecard has revealed that present strategies for the financial perspectives has been taken into consideration as per: Maximization of the shareholders wealth · Increasing the operating profit · Following the competitive pricing policy |
The main interpretations have able to depict that the company followed important measures for: · Increasing the share price Achieve higher profit margin · Lowering of the various type of the initiatives taken for the publishing cost |
There have been significant gaps in the financial perspectives. Some of the main form of the gaps which has been depicted in form of: The decreasing the target and actual share price. The targeted share price was depicted to be $ 460 million while the actual increase in the share price was only $ 307.28 (Sun et al. 2016) |
|
Customer Perspective Strategic target for the customer has been set with: · Fast delivery · Brand loyalty · User responsive website |
The measures in this aspect is seen with: · Establishing more number of distribution centres · Improving Customer revisits, · Increasing the customer ratings and making investment for the site maintenance |
In this aspect the target of the company was set with the various types of the consideration which shows that the target for establishing more distribution centres was 3 days, while in actual it was depicted as 5 days. The customer revisits target was set as 38%, however the actual was only 28.5%. in addition to this, the target of the customer rating got reduced from 4.9 to 4.2. The target set for the site maintenance got reduced from 200m to 154m. The reduction in this aspect clearly shows that the company has failed to maintain the required investment in improving the customer services (Schuldt et al. 2017). |
|
Internal Business Process Perspective Some of the various types of the internal business process strategies for the company has been further seen to be depicted in form of: · Speed of processing the orders · Securing online data processing |
The main measures to ensure this is seen with: · Reducing the process time · Reduction of the customer complaints |
It is seen that the actual target for reducing the processing time was 2 hours and the actual achieved processing time was increase. In addition to this, Amazon aimed at reducing the customer complaints to 0%, however there was 5% of customer complaint record as per the depictions of the present balance sheet (Amazon 2015). |
|
Learning and Growth The various types of the other implications on the learning and growth strategies has been set with: · Inclusion of highly skilled staff · Ensuring innovation in the organization |
The performance measures for the learning and growth aspects were considered as: · Training and employing of high expertise staff · Overall improvement in the Research and development area |
Based on the different types of the depiction of the study it has been that the targeted for the training and employee was set with 108m however this was seen with 79 m in the actual results. In addition to this, there was significant gap on the research part by the company as per the target set and the actual achieved results (Zhu and Liu 2016). |
Table 1: Evaluation of Current Amazon Balanced Scorecard
(Source: As done by the author)
The recommendations to the changes in the are stated with the various types of the new performance measures which needs to be set in the respective financial, customer, internal business process and learning and growth aspects.
|
Objectives |
Lead Indicators |
|
Financial · Sourcing of the funds from the external sources to maintain appropriate funding · Maximizing the shareholder return to support the operating losses |
· Engaging in different types of the financial sourcing options such as long-term borrowing to fill the lag in share price · Looking forward to strategic acquisitions and making the most of it · Taking into consideration the increasing nature of the tax rate in Australia · Taking into consideration the increasing in the fuel price per barrel thereby affect the delivery charges (Smith and Linden 2017) |
|
Customer · Increasing the overall customer commitment towards the customers · Creating value for the existing customers by understanding their problems · Hold a regionally significant position in Australia with improved customer service and better access to the global store |
· Conducting regular survey to know about the customer grievances · Using the system of net promoter score for measuring the customer advocacy · Increasing the share of funds towards existing facility in Australia · Improving the number of customer revisits · Improving the Customer Ratings · Reducing cost in maintenance |
|
Internal Business Process · Improving the quality of the products in all categories · Ensuring timely processing of the orders |
· Improved quality audit of the products before the final dispatch · Reducing the processing time by increasing the procurement from few supplier · Prevent the delay in the present processing by 1 hour · Consider the increased nature of the customer complaints associated to the quality of the products offered and services and reduce the same (Newcombe et al. 2015) |
|
Learning and Growth · To be a leader as an online retailer and sustain the increased market capital · Ensuring the process innovation through employing of highly skilled staff |
· Focusing on strategy of cost leadership to ensure maximum sales of the products · Reducing cost of innovation · Considering the Cost constraints associated to training of the high expertise staff |
|
Performance Measures |
How measure links to improved financial performance |
|
Sourcing of the funds from the external sources to maintain appropriate funding |
This measure is directly related to increasing the present funds available for the operations of the company |
|
Maximizing the shareholder return to support the operating losses |
Increased shareholder return will be able to compensate for the losses in the operations |
|
Increasing the overall customer commitment towards the customers |
Increase in the customer commitments will ensure more revenues for the company |
|
Creating value for the existing customers by understanding their problems |
This will create loyalty among the customer and regain their interest in the company which further result in increased sales for Amazon |
|
Improving the quality of the products in all categories |
Gaining in terms of the marketing competition from the off-line. This is conducive to the increase the decreasing operating profit |
|
Ensuring timely processing of the orders |
The company will be able to retain the trust of both cucumbers and sellers and at the same time will be able to ensure increased revenues |
|
Ensuring the process innovation through employing of highly skilled staff |
Reducing the overall process and ensuring more number can be dispatched at time. This will be considerably able to increase the total number of the orders which are processed in single day |
The implementation plan needs to be considered with the availability of the financial resources to implement the recommended balanced score card. The time consideration needs to be also considered in this aspect. The total time needed to implement the plan has been seen to be depicted as 12 months. It needs to be further discerned that the overall process will comprise of the various types of the important considerations which are seen to be related to the availability of the Human resources (Stuenkel 2018).
Conclusion
The various types of the discussions on the evaluation of current balanced scorecard has shown that There have been significant gaps in the financial perspectives. Some of the main form of the gaps which has been depicted in form of the decreasing the target and actual share price. The customer revisits target was set as 38%, however the actual was only 28.5%. in addition to this, the target of the customer rating got reduced from 4.9 to 4.2. Some of the recommended action plan for the company has been included with Engaging in different types of the financial sourcing options such as long-term borrowing to fill the lag in share price and Looking forward to strategic acquisitions.
References
Amazon, E.C., 2015. Amazon web services. Available in: https://aws. amazon. com/es/ec2/(November 2012).
Kousha, K. and Thelwall, M., 2016. Can Amazon. com reviews help to assess the wider impacts of books?. Journal of the Association for Information Science and Technology, 67(3), pp.566-581.
Kristensen, M., Penner, J., Nguyen, A., Moy, J. and Lam, S., 2017. Company Synopsis for: Amazon. com, Inc.
Newcombe, C., Rath, T., Zhang, F., Munteanu, B., Brooker, M. and Deardeuff, M., 2015. How Amazon web services uses formal methods. Communications of the ACM, 58(4), pp.66-73.
Schuldt, J.P., Chabris, C.F., Woolley, A.W. and Hackman, J.R., 2017. Confidence in dyadic decision making: The role of individual differences. Journal of Behavioral Decision Making, 30(2), pp.168-180.
Smith, B. and Linden, G., 2017. Two decades of recommender systems at Amazon. com. IEEE Internet Computing, 21(3), pp.12-18.
Stuenkel, O., 2018. Brics: A Very Short Introduction. Andrew F. Cooper. Oxford University Press, Oxford, UK, 2016. 144 pp. $7.67 (Kindle, amazon. com). Governance, 31(1), pp.193-194.
Sun, M., Raju, A., Tucker, G., Panchapagesan, S., Fu, G., Mandal, A., Matsoukas, S., Strom, N. and Vitaladevuni, S., 2016, December. Max-pooling loss training of long short-term memory networks for small-footprint keyword spotting. In Spoken Language Technology Workshop (SLT), 2016 IEEE(pp. 474-480). IEEE.
Zhu, F. and Liu, Q., 2016. Competing with complementors: An empirical look at amazon. com.
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