Internal business process perspective6
Safe & sustainable6
Focus on customer7
Where people make the difference7
On Time Flight10
Firstly, the balanced scorecard was considered as a measurement tool, however at the present time it is been widely used by organizations as a strategic management system that supports and clarify company’s strategy and vision by measuring the four elements of the balance scorecard and interprets these aspects into strategic actions within the business thus to achieve a competitive advantage The balanced score card is a vital management concept that enables managers to link the gap between tactical objectives counter to operational excellence. It also provides feedback concerning the business internally and its external outcome for continuous improvement of the overall performance. When the four elements of the balanced score card are integrated fully it alters strategic planning into sustainable execution . This report aims to explain the balanced score card analysis of Easy Jet, the low-priced fares airline company. The main body of this report is divided into four parts relating to the balanced scorecard themes; 1. The financial aspect
2. The internal business
3. The customer perspective
This aspect of the balanced scorecard is an important variable perspective for Easy jet which determines the effectiveness of the company’s strategy on the end result. The financial objective of profit making businesses are typically associated with higher profitability margins which are measured by proportions such as, rapid sales growth, operating profit and return on capital. This perspective of the BSC is affected by three different stages of an industry’s life cycle.
The main goal targeted by easy jet that is to maximise profits and sale figures to increase shareholders’ funds by offering lower prices than competitors. Measures:
Selected performance measures of success are listed below to show the transformation in financial aspect of the company. The ratios shows that Easy jet is complying with its main strategy of increasing profits and decreasing costs which results in more returns on shareholders equity.
| 2011| 2012|
Total revenue| 3452 million | 3854 million|
Revenue per seat | 58.51| 55.27|
Operating profit margin | 7.7%| 8.5%|
ROE| 14| 14.6|
ROCE| 12.5| 14.5|
Earnings per share| 52.5p| 62.5p|
Dividend per share | 10.5p| 21.5p|
* Increase profits for next year by 12 %
* Reduce the company’s income expenses to increase profit margin * Increase EPS and DPS by increasing profits .
* Reduce the amount of non-current borrowings to increase the ROCE. * Increase number of potential customers
* Maintain with aligning corporate goals
* Easy jet should have a fewer plans this will reduce costs and leading to more profits, it also denotes a quicker turnaround and making customers happier by scheduling flights on time.. * Easy jet need to standardize their plans to meet the value that customers expect, also the company need to upgrade their planes in a certain period of time to avoid extra costs and expenses, thus this will also increase the company’s social corporate responsibility and goodwill. * Easy jet have high financial performance in the last few years, thus keep on increasing figures will generate more shareholders wealth * Increase market share and revenue by optimizing more routes * The company similarly need to control its overhead expenses to further increase greater OPM figures.