Balanced Scorecard For The Erica's Classy Lady Company

Strategic Plan, Part III: Balanced Scorecard
Jerome T. Covington
BUS/475
Nov. 1, 2011
Mr. Ofori-Brobbey

Strategic Plan, Part III: Balanced Scorecard In this paper the writer will be discussing the balanced scorecard for the Erica’s Classy Lady Company. Before going into the details of the scorecard a person must know and understand what a scorecard is. A balanced scorecard includes measures that are linked to a company’s strategy and was developed by Robert S. Kaplan and David P. Norton in order to direct a company within its long-term strategies with tangible goals and actions (Pearce & Robinson, 2009).
Financial Perspective Revenues and costs is one objective that Erica’s Classy Lady Jewelry would like to obtain. Revenues
Profitability indicates the efficiency of a company at generating earnings (MoneyChimp, 2011). According to the financial perspective evaluation of Erica’s Classy Lady Jewelry, the profitability of the company is projected to be high over a short period of time; specifically over a six to nine month period. Profitability is not necessarily seen simply because a company is able to generate sales because sales alone are not what make a company profitable; what makes a company profitable are sales coupled with the ability to cut cost. The profitability for Erica’s Classy Lady Jewelry will come from minimal travel and the low cost in production. A few more ways Erica’s Classy Lady Jewelry will be able to cut cost is through referrals and networking and not through paid advertisements (Entrepreneur, 2011). One more way Erica’s Classy Lady Jewelry can cut cost is once the company generates enough profit to expand and open boutiques, they can buy building big enough for them to rent out space (Entrepreneur,
This perspective covers the areas of measured process performance, productivity improvements, and operations metrics. The purpose of measuring performance is to gage how well a company is doing and to determine a company’s ability to sustain business and profits. The process by which business is conducted at Erica’s Classy Lady Jewelry is simple. Product is either made or purchased wholesale and then sold at a certain price. Erica’s Classy Lady Jewelry business operations process also involves Jewelry parties where a table or tables are set up in order to display product for customers to view. These parties can be set up in a person’s home or any available space suitable for conducting business. The productivity of the company is that several jewelry parties be booked throughout the year through networking and referrals.
Employee Learning and Growth As stated before, customers are normally satisfied and walk away from conducting business with Erica’s Classy Lady Jewelry with a smile on their faces. The customer turnover rate has been low since the company started and the customer retention is high. This is also due to the technological innovations that have come about in the recent years. Not only has Erica’s Classy Lady Jewelry been able to cut cost through not having to pay for advertisement, but the company has been able to save money through using technological innovations such as social networks