Prof. Eric McMath
A balanced score card is a valuable method for analyzing the objectives of a strategic plan. Pro Audio Superstore will be able to use this method as a key component of the strategic plan. There are four main areas of the strategic plan that can be analyzed using a scorecard, which include: Financial, customer, internal business process, and learning and growth. Each of these categories should be measured separately to understand their cause and effect relationship. The analysis starts by defining the objectives in each category, which is followed by benchmark goals and initiatives. The scorecard will list this in a table format and help the organization develop an organized plan for reaching its objectives. Previous outcomes of the SWOTT analysis have a significant influence on the balanced scorecard and will contribute to the overall strategic plan (Pearce 2004). Ultimately, the balanced scorecards will provide Pro Audio Superstore with attainable goals in each of the four areas of the business.
| |Measures |Targets |Initiatives | |Objectives | | | | |Decrease the weighted average cost|WACC should be less than 6.0% over|The company should see a quarterly|This goal can be achieved for | |of capital WACC |the next year |decrease in WACC every quarter for|seeking out low cost financing | | | |the next year. |from banks and investors. | |Lower overall inventory costs |Inventory costs should be reduced|We should also notice a decrease |Seek both domestic and...
References: Pearce, J. Robinson, R. (2004). Strategic Management: Formulation, Implementation, and Control, 9e. Retrieved on September 28th 2009 from Resource
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