Business Model and Strategic Plan Part III
October 27, 2014
The balance scorecard is another tool that goes along the same lines as the strength, weakness, opportunity, threat, and trend or commonly known as SWOTT. The information in this document will cover the basic aspects of the balance scorecard.
The balance scorecard method will cover four main areas or quadrants and those are: shareholder value or financial perspective, customer value perspective, process or internal operations perspective, and learning and growth of the employee perspective. These four main areas or quadrants will help explain how Samsung’s new division, Customers Research and Development will be adopted into the Samsung business portfolio. Four Areas
1. Financial Perspective: Samsung’s new division, Customers Research and Development will initially have no upfront financial consideration with Samsung supporting the new division.
1a. The division will start to focus on how to grow their own financial support t
hat is separate from Samsung’s overall financial budget. This will assist both the
division and Samsung as a whole by having its own cash flow. This could also
assist in providing customers that submit ideas with a financial award for their
ideas that are initially taken on by Samsung.
1b. While the focus will be on how the division can become financially on its
own with help still from Samsung. The division will need to focus on how to
boost the profit margin for Samsung and how the customer’s ideas will help
benefit the boost in profit.
1c. The new division for Samsung will have an objective of increasing the
company’s profit margin by 10% for the upcoming fiscal year.
2. Customer Perspective: Without the customer base to support Samsung’s new division, the division will fail. This will be the long-term goal of keeping customer ideas flowing into the division so that division can further research and develop the customer’s ideas.
2a. Having a strong customer relationship will always be the success or failure
for the division, let alone the company. A goal for the new division would to
have at least a 10% customer base of the total number customers of Samsung
3. Internal Business Process: Samsung’s new division, Customer Research and Development will use the balance score card along with SWOTT analysis to improve on the goals for the division. Some of the goals are:
3a. Boost customer satisfaction and efficiency with communication and timely
responses to the customer’s ideas.
3b. Work on eliminating processes within the division that are not efficient and to
reduce operating costs.
3c. Develop a set of skills for the employees and leadership to meet and exceed.
This will help with determining who the top performers and who are average to
below average performers.
4. Research and Development: Since the new division falls under research and development, it makes perfect sense to cover this area. Below are the research and development goals:
4a. The new division will launch employee and leadership incentives or
compensation programs. The focus will be keeping the best employees and
leaders in the division, and focusing on having a turnover rate of 5% or less in the
4b. Have on-the-job training tools for the employees and leadership to meet and
exceed. Continue to develop the employees and leadership with education
opportunities and work related training.
4c. Making sure the Customer Research and Development division is staying
head with the latest tools that make tracking research and development easier.
The chart below is Samsung’s Customer Research and Development division balance scorecard. The score card below is the initial score card for the division. There will be adjustments made overtime to the scorecard....
References: Samsung. (2014). Samsung. Retrieved from http://www.samsung.com/us/aboutsamsung/
Please join StudyMode to read the full document