Chadwick Inc. Balance Scorecard
Nov. 13, 2013
The Balance Scorecard – Chadwick, Inc.
Relying on traditional financial measures, a single perspective, failed to provide a clear performance on the business performance of operations. The balanced scorecard gives managers a comprehensive view of the business by providing four perspectives of both external and internal operations: financial perspective, customer perspective, internal business perspective, and innovation and learning perspective. The Balance Scorecard allows executives to analyze and compare these internal and external operations to see if they have improved in an area at the expense of another. This strategy gives the company the opportunity to protect itself from posting suboptimal performance. The Balance Scorecard indicates financial measures that have already been taken, long term performance in order to achieve the corporations’ objectives: customer oriented, shortening response time, improving quality, emphasizing teamwork, reducing new product launch times, and managing for the long term.
Financial Perspective
The first financial objective of Norwalk is to increase its profitability. In order for Norwalk to achieve an increase in its profitability, the division should reach out more to key distributors to help them market their products to the public and develop a larger market share. Moreover, these key distributors will also help attract consumers to purchase their products, which will lead
Norwalk to accomplish its expected sales. Therefore, this will not only help Norwalk in terms of increasing their profitability, but also to increase their growth. The second financial objective for
Norwalk is to lower its unit costs to allow them to gain position in the market. Hence, Norwalk can calculate to lower its unit costs by the improvement percentage of gross margin and productivity. The last financial objective that Norwalk should consider should be to boost its
1
yields. Since the Norwalk Division
The Balance Scorecard – Chadwick, Inc.
Relying on traditional financial measures, a single perspective, failed to provide a clear performance on the business performance of operations. The balanced scorecard gives managers a comprehensive view of the business by providing four perspectives of both external and internal operations: financial perspective, customer perspective, internal business perspective, and innovation and learning perspective. The Balance Scorecard allows executives to analyze and compare these internal and external operations to see if they have improved in an area at the expense of another. This strategy gives the company the opportunity to protect itself from posting suboptimal performance. The Balance Scorecard indicates financial measures that have already been taken, long term performance in order to achieve the corporations’ objectives: customer oriented, shortening response time, improving quality, emphasizing teamwork, reducing new product launch times, and managing for the long term.
Financial Perspective
The first financial objective of Norwalk is to increase its profitability. In order for Norwalk to achieve an increase in its profitability, the division should reach out more to key distributors to help them market their products to the public and develop a larger market share. Moreover, these key distributors will also help attract consumers to purchase their products, which will lead
Norwalk to accomplish its expected sales. Therefore, this will not only help Norwalk in terms of increasing their profitability, but also to increase their growth. The second financial objective for
Norwalk is to lower its unit costs to allow them to gain position in the market. Hence, Norwalk can calculate to lower its unit costs by the improvement percentage of gross margin and productivity. The last financial objective that Norwalk should consider should be to boost its
1
yields. Since the Norwalk Division