Overview[ edit ] Unemployment generally falls during periods of economic prosperity and rises during recessions, creating significant pressure on public finances as tax revenue falls and social safety net costs increase.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Usefulness of the Balanced Scorecard Essay Sample Introduction The purpose of this report is to assess the usefulness of the balanced scorecard BSC model within a business and strategic management accounting.
To acquire such information, the model will be applied to a company and then critiqued giving both the benefits and any practical implications regarding the use of the BSC. The BSC was introduced by Kaplan and Norton as a new approach to strategic management accounting.
It involves measurement over four perspectives each defined by Kaplan and Nortonp72 as: Customer — How should we appear to our customers? Internal business Processes — What business processes must we excel at Learning and growth — How will we sustain our ability to change and improve?
It is a worldwide organization that currently has 23 production and assembly plants in 13 different countries BMW Education Programme, Their competitors are businesses in the premium automobile market, such as Mercedes-Benz and the Volkswagen Group, which owns premium brands Audi and Porsche.
The target customer base for the BMWG is within the upper middle class sector — professional employees high in the corporate world. This vision has been translated into strategic objectives within the BSC which all work towards the same goal of sustainability which has been outlined in Appendix A.
The objectives will now be explained as to why the measures were chosen. Measuring market share is directly in line with the vision as it clearly shows if the business is leading the industry and indicates if quality is above their competitors.
Another method to coincide with the profitability objective is using ROCE. This allows for the company to maximise shareholder value by maintaining a certain return expected on invested capital. A practical implication of this is if heavy investment is made which will receive future income, the results will be below target therefore it may deter managers to undergo expensive investments that may be highly profitable in the future.
According to Dow Jones Sustainability Index ReportBMW are leading the world with their sustainability model, and also have consolidated their position as market leaders within the luxury car segment. Customer satisfaction would be measured via questionnaires given to customers to rate the service or product received.
This would pursue the objective of providing quality products and services as the customers use the goods and ultimately judge whether the company are delivering on these objectives.
This could then be compared against competitors to ensure they are performing ahead of the market. However there could be difficulty in attaining information that is free from bias.
If the company choose a group of customers who have only ever owned their products, then the results would be skewed in the favour of the BMW group therefore not providing accurate information. A measurement of the customer acquisition attained by the business is also used. This not only allows the BMW Group to maintain share and be market leaders, but also is a strong indicator that they are providing goods and services at a level above what their competitors are currently offering as new consumers are investing products from the company.
To measure the objective, improve resource efficiency and environmental impact, the BMW Group need to have a product which has zero co2 emissions.
The company are currently in the process of releasing an all-electric car which will complete this goal therefore this has been chosen as a goal. This aim allows the business to pursue the vision of offering premium products to customers. The second measurement is the amount of non-recyclable wastage per vehicle produced.
Reducing this figure allows for the efficiency within the BMW Group to increase, resulting in less squandered expenditure. Less monetary wastage means more cash can be reinvested in the company to improve its services and products. A limitation of this is the cause-and-effect link Norreklit, The first objective would be to ensure staffs are sufficiently trained in order to provide premium services and products.Balance Score Card Assignment A Balanced Scorecard can be defined as a “performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy” (Wikipedia , ¶ 1).
Usefulness of the Balanced Scorecard Essay Sample. Introduction. The purpose of this report is to assess the usefulness of the balanced scorecard (BSC) model within a business and strategic management accounting.
“The Balanced Scorecard (BSC) is a performance measurement system which was developed by Kaplan and Norton in in order to address the limitations of the use of the traditional financial performance measurement systems (Kaplan and Norton, )”Giannopoulos, Holt, Khansalar&Cleanthous ().
This is a Bibliography related to Controversial Issues in Accounting. Controversial Issues in Accounting Bibliography.
Provided by James R. Martin, Ph.D., CMA Professor Emeritus, University of South Florida. Controversial Issues in Accounting Main Page. The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against.
A balanced scorecard can transform strategic objectives to flow logical resources of performances. This will ensure that the organization efforts are aligned with mission statements and the employees’ investors and customers’ needs are catered for.