Balanced Scorecard

Question 2

Balance Scorecard perspectives

Answer 2

Financial
Customer
Internal Business process
Learning and Growth

Vision and strategy creates all

Question 3

Three financial themes that drive the business strategy

Answer 3

a) revenue growth and mix
b) cost reduction and
c) asset utilisation

Question 4

Objectives and measures of revenue growth

Answer 4

Objectives
- Increase the no. of new products
- Develop new customers and markets
- Change to more profitable product mix

Measures:
- Percentage of revenues from new products
- Percentage of revenues from new customer / market
- Sales growth percentage from tangered segments

Question 5

cost reduction objectives and measures

Answer 5

Objectives :
- Reduce product I sevice cost peruhit
- Reduce seling/ administration costs

Measures:
- percentage reduction in cost perumt
-percentage to total revenues of selling and administration costs

Question 6

Asset utilisation Measures and objectives

Answer 6

Objectives:
- Improve asset utilisation

Measures:
- Return on investment
- Economic Value Added

Question 7

Financial measure costs

Answer 7

• Prevention Costs
• Appraisal costs
• Internal faniure costs
• External faliure costs

Question 8

5 typical customer perspective objectives

Answer 8

a) Increasing marketshare
b) Increasing customer retention
c) Increasing customer acquisition
d) Increasing customer satisfaction
eJ increasing customer profitability

Question 9

5 typical core measures for customer perspectives

Answer 9

a) percentage market share
b) percentage growth of business with existing customers
c) number of new customers or total sales to new customers
d) ratings from customer satisfaction surveysand profitability
e) analysis by customer segments

Question 10

Customer valve proposition objectives (and measures)

Answer 10

• Improve product functionally (customer survey product functionality rating scores)
• Decrease price relative to competitors (Price relative to competitors)
• Improve product/ service quality (Percentage returns from customers)
• Improve delivery time (Percentage on-time deliveries)

Question 11

Define Internal Business Process (IBP)

Answer 11

Requires managers to identify the critical internal processes essential for the organization’s strategy and achieving its customer and financial objectives.