Bsc for Tesco
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Is balanced scorecard useful for retail companies? Tesco case study
Read more: http://www.businessteacher.org.uk/free-business-essays/isbalanced-scorecard-useful-for-retail-companies.php#ixzz2PHsEYEMK
INTRODUCTION:
Balanced scorecard is a management tool which is used by companies to gain complex information at a glance. According to Kaplan and Norton (1992), balanced scorecard is a set of measures that gives top managers a fast but comprehensive view of the business. The balanced scorecard allows managers to look at the business from four main perspectives: Customer perspective, internal perspective, innovation and learning perspective and financial perspective. This project will critically examine the usefulness of balanced scorecard with the four main perspectives as a base and a view of longer term perspective. I have used a case study of Tesco PLC in order to examine the usefulness of balanced scorecard.
LITERATURE REVIEW:
According to Kaplan and Norton, 1996 the balanced scorecard is a model which integrates financial and non-financial strategic measures. It is distinct from other strategic measurement systems in that it contains outcome measures and the performance drivers of outcomes, linked together in cause-and-effect relationships (Kaplan and Norton, 1996). The balance scorecard by Kaplan and Norton includes 4 main perspectives: Customer perspective, financial perspective, internal business perspective and innovation and learning perspective.
The Balanced scorecard above is prepared by Kaplan and Norton (1992) shows the four perspectives. In 2008, Kaplan and Norton prepared a balanced scorecard as Strategic Management System. The balanced scorecard relies on four processes to combine short time activities to long term activities. It shows a cause and effect relationship between the activities.
Translating the vision means managers build a plan around the organisation 's vision and strategy.
Is balanced scorecard useful for retail companies? Tesco case study
Read more: http://www.businessteacher.org.uk/free-business-essays/isbalanced-scorecard-useful-for-retail-companies.php#ixzz2PHsEYEMK
INTRODUCTION:
Balanced scorecard is a management tool which is used by companies to gain complex information at a glance. According to Kaplan and Norton (1992), balanced scorecard is a set of measures that gives top managers a fast but comprehensive view of the business. The balanced scorecard allows managers to look at the business from four main perspectives: Customer perspective, internal perspective, innovation and learning perspective and financial perspective. This project will critically examine the usefulness of balanced scorecard with the four main perspectives as a base and a view of longer term perspective. I have used a case study of Tesco PLC in order to examine the usefulness of balanced scorecard.
LITERATURE REVIEW:
According to Kaplan and Norton, 1996 the balanced scorecard is a model which integrates financial and non-financial strategic measures. It is distinct from other strategic measurement systems in that it contains outcome measures and the performance drivers of outcomes, linked together in cause-and-effect relationships (Kaplan and Norton, 1996). The balance scorecard by Kaplan and Norton includes 4 main perspectives: Customer perspective, financial perspective, internal business perspective and innovation and learning perspective.
The Balanced scorecard above is prepared by Kaplan and Norton (1992) shows the four perspectives. In 2008, Kaplan and Norton prepared a balanced scorecard as Strategic Management System. The balanced scorecard relies on four processes to combine short time activities to long term activities. It shows a cause and effect relationship between the activities.
Translating the vision means managers build a plan around the organisation 's vision and strategy.
References: Kaplan RS and Norton DP (1992) 'The Balanced Scorecard - Measures that Drive Performance. ' Harvard Business Review, January-February, pages 71-79. Kaplan, R.S. and Norton, D.P. (2007) 'Using the Balanced Scorecard as a Strategic Management System ', Harvard Business Review. Kaplan, R. S. and Norton, D.P. (2008) "Mastering the management system", Harvard Business Review, vol. 86 Jan. pp63-77. Meyer, M. M (2002) Rethinking performance measurements,Cambridge university press. Cambridge Drury, C (2009) Management Accounting for business, 4th edition, Singapore -Seng Lee press N�rreklit, H. (2000) "The balance on the balance scorecard - a critical analysis of some of its assumptions", Management Accounting Research, vol. 11, pp 65-88.