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BY
Arkaprava Ojha
A.Avinash
Atanu Roy
Shiv Prashad Chawdhary
Prakash
Balanced Score Card
of
The Financial Perspective
The information available is the annual report and the
financial statements. In addition, news reports of marketing
strategy, internal operations, strategy, and management
systems are also accessible.
Objectives Measures Target Initiatives
Increase
revenues/to
tal assets.
Increase
revenues/e
mployee.
Increase
return on
investment.
Revenue/tot
al assets
percent. .
Revenue/em
ployee
Return on
investment..
Increase
Revenue/total
assets by 8%
during the next
year.
Increase
revenue/employ
ee by 5 % during
next two years.
Increase return
on investment by
2% every year for
three years. .
Increase revenues;
make a more
thorough use of
assets.
Increase employee
efficiency through
training and
technology.
Reduce operating
costs, and achieve
economies of scale
through bulk
purchases.
• The three objectives are Increase revenues/total assets ;
Increase revenues/employee and Increase return on
investment.
• The strategy of Wal-Mart is cost leadership; increasing
revenues/total assets is a strong indicator of cost
reduction. Further, increasing revenues/employee will
also help maintain its cost leadership.
• Finally, Increase return on investment will be possible only
if Wal-Mart controls its costs. Each of the financial
objectives is related to the strategy of Wal-Mart.
The Customer Service Perspective
Increase
average
customer size
of Wal-Mart.
Increase
customer
rating of Wal-
Mart
Reduce
number of
customer
complaints.
Average
customer size.
Customer
rating.
Customer
Complaints.
Increase customer
size by 5% every
year for next five
years.
Increase customer
rating by 10% in
one years’ time.
Reduce the
number of
customer
complaints
received by 4%
every year for
three years.
Provide a wider
variety of
products to
customers.
The prices at Wal-
Mart should be
the lowest in the
market.
Improve quality
control of
products stocked
and improve
customer service.
Objectives Measures Target Initiatives
• The three objectives are increasing average customer size
of Wal-Mart, increasing customer rating of Wal-Mart, and
reducing the number of customer complaints.
• The Mission is to help save money so that they can live
better. If Wal-Mart helps customers save money, the
customers will buy more from Wal-Mart.
• If Wal-Mart helps customers live better, they will give an
improved rating to Wal-Mart. If the customer save money
and live better, then there will be fewer complaints against
Wal-Mart
Objectives Measures Target Initiatives
Reduce
administrative
expense/total
revenues.
Reduce lead
time from
online orders
to delivery.
Reduce
waiting time
for customers
at counters.
Administrative
expenses/total
revenue.
Average time
taken.
Average
waiting time.
Reduce
Administrative
expenses/total
revenue by 2%
every year for
next five years.
Reduce time taken
by 5 % in every
year for next three
years.
Reduce the
average waiting
time by 15%
within one year.
Train the
employees so
that they
become more
efficient.
Use automatic
packing and
handling
technology for
speeding up.
Change the
layout of the
store so that
more checkout
counters are
opened.
The Internal Process Perspective
• The three objectives are reducing administrative expense/total
revenues, reducing lead time from online orders to delivery at Wal-
Mart, and reducing waiting time for customers at counters.
• The strategy of Wal-Mart is cost leadership; reducing administrative
expense/total revenues will help Wal-Mart reduce costs.
• If Wal-Mart helps customers live better, it must make faster deliveries
and reduce waiting time for customers.
• Reducing waiting time for customers frees their time and enables them
to live better.
Objectives Measures Target Initiatives
Increase
training hours
per employee.
.
Reduce
employee
turnover rate.
Increase use of
employee’s
view
Average
training hours
per employee.
Employee
turnover rate.
Empowerment
index.
Increase
training hours
per employee by
5% each year for
the next three
years.
Reduce
employee
turnover rate by
3% each year for
next thee years.
Increase
empowerment
index by 5%
every year for at
least three years.
Hire outside
trainers. Managers
should increase
their time spent
for training.
Increase employee
participation in
decision making.
Also, increase job
rotation.
Give more
decision making
authority to
employees.
The Learning And Growth Perspective
• The three objectives are Increase training hours per employee at Wal-Mart; Reduce employee turnover rate at Wal-Mart, and Increase use of employee’s view .
• The strategy of Wal-Mart is cost leadership; reducing employee turnover rate will lead to cost reduction.
• Further, Increasing training hours per employee will make employees more efficient and so will lead to cost reduction and better prices to customers.
• Finally, Increase use of employee’s view will provide greater initiative from employees to reduce costs.
• Empowered employees will be motivated employees and will help Wal-Mart control its costs.