Strategic Plan III: Balanced Scorecard
A balanced scorecard is a strategic business tool used to collect and report information to management on four specific areas which include the financial perspective, customers perspective, internal operations perspective, and learning and growing aspect. These help a business monitor performance and make necessary improvements that will contribute to the success of the organization. In the following paragraphs I will discuss my ice cream parlor’s balanced scorecard and how it will be used to better my business.
In my ice cream parlor’s financial perspective of my balanced scorecard the strategic objectives that merit the main focus would be revenues and costs, profitability and competitive position objectives. Revenues and costs are extremely important because these will help us get the necessary ratios to determine the current ratio and whether or not we are stable in our finances. The goal is to have higher revenues than costs. The profitability is also just as important and we can use the profit margin to conclude if we are meeting our objectives and targets, which are to maximize the business value and to increase profits by three percent every six months. The initiative used would be to create a main focus on net income and sales to create stricter strategies to meet our goals. Lastly, our competitive position would be our products prices. They will be lower than the other ice cream parlor- like stores because we will buy from a wholesaler or distributer and start selling making a slight profit but as the competition raises their prices we will raise ours but keep them lower than the rest.
Customer value perspective is very significant to my business. My business strategic objectives would dominate in the following areas: customer retention, customer satisfaction, and customer value. The most important strategic objective is to keep customers happy and loyal to my company. This can be achieved by keeping the...
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