Business and Finance Essay Example

Gross profit and operation profit from annual reports

Sales comparisons from previous years Make sure online sales increase Products are accessible to customers through online presence

B&M maintain aspects assured to customers

Increase gross margin Profit and loss reports Cost of sales and turnover grew due to the 34% increase in 2015 (Keynote, 2016) Analysing product prices successful compared to least successful

Increasing prices if required

Return on investment The balance sheet shows revenues increased to 21.88% from 1.351bn to 1.647bn from 2012-15 (Financial Times, 2016) Return on investment remains at balance from 2012-15 return on investment 9.16% (Financial Times, 2016). Reducing costs

Make sure revenues and profits grow

Over the last three years it shows that B&Ms turnover has increased as well as the revenue (Maisel, 1992).

3.3.2 Customer Perspective

Objectives Measures Targets Initiatives

Customer Satisfaction Customer feedback through online questionnaires

feedback cards sent with products to rate service

Customers will need to be given incentives in order to attract them to provide feedback. Increase market share in in-store as well as online market sectors

To gain no complaints from customers Updating customer trends constantly.

Ensure employees are trained with customer service skills

Online presence should function efficiently

Market share and increasing number of customers Customers feedback

Increase in sales volume Increase sales volume

Increase competitive advantage Open new branches in different areas

Product Promotion

Offer Quality products and services

Repeat Customer Customer feedback

Checking customer records Increase customer satisfaction

Increase retention

Develop customer loyalty

Increase product and service quality

Offer products for sale at a lower price

Rate of on-time deliveries Percentage of deliveries on time

Number of customers complaints Increase sales volume

Increase customer satisfaction and loyalty to increase consumption rate of the company products

Kaplan (2010) states the customer satisfaction perspective needs to show positive results for example customer satisfaction, market share, customer conservation and new customer attainment. B&M needs to outline the market targets for existing and potential performance formerly then recognise which customer segment needs to be directed at.

3.3.3 Internal Business Process Perspective

Objectives Measures Targets Initiatives

New-product development time Percentage of employees efficiency

Measure machine production capacity

Actual introduction schedule and plan Improve product development

Improve production capacity Improve employees personal development

Improve machine production capacity

The number of units products per hour and defect rate Measure rate of production

Count number of defects

Increase the production capacity Increase the size of production machine

The number of warranty claims received, average repair time and average wait time Customer complaints

Percentage of warranty claims received Reduce repair rate

Reduce the number of warranty claims Sell products with no defects

Ensure quality throughout the production process

Confirm product quality before sale

B&M has developed strong internal business processes. Its key processes are very efficient to the level that it can provide customer value they are expected of (Maisel, 1992). This company utilizes its assets efficiently and it has also developed good customer relations because it produces products and services which are able to meet customers needs. This company has also developed good relationship with external stakeholders and this increases the company productivity and efficiency.

3.3.4 Learning and Growth Perspective

Objectives Measures Targets Initiatives

Hours of employee training, employee satisfaction and turnover, and number of employee suggestions implemented

Employee appraisal

Performance appraisal

Employee feedback To motivate employees

Increase employee performance Offer additional training to employees

Reward employees according to their performance

Provide incentives to employees

Percentage of employees with access to customer data and percentage of processes with real-time feedback

Interview customers

Obtain employees response concerning customers data To understand customer demands and needs To increase the company market share

Employee turnover rate Employees feedback

Level Work flexibility

Measure employee motivation Increase employee turnover

Customer satisfaction

Increase in production capacity Improve working condition

Use performance based compensation

The improvement of the employees personal development is very important. It increases the performance of the organization through the increase in customer satisfaction, improve the organization processes and also increase employees motivation (Kaplan and Norton, 2000). This can only be achieved when the objectives of learning and growth perspectives have met. Meeting these objectives require measuring the employees performance through performance appraisal and other mechanisms. The results are used to develop strategies such as provision of total reward to motivate employees, create flexible work environment and also provide incentives to increase employees work morale (Norreklit, 2000). These actions have been taken by B&M Company and they ensure that there is low employee turnover.

References

Kaplan, Robert S and Norton, D (2000). The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Boston, MA: Harvard Business School Press

Maisel, L. S. (1992). "Performance measurement: the Balanced Scorecard approach". Journal of Cost Management 6 (2): 4752.

Norreklit, Hanne (2000). "The balance on the balanced scorecard - a critical analysis of some of its assumptions".Management Accounting Research (1): 6588.