Chapter 13 – Strategic control and performance management

Question 1

In order to monitor and control the business, Wearden (2019) suggests four key perspectives: (4 As)

Answer 1

1. Analysis: methods to understand what is happening and why (performance and effectiveness)
2. Audit: oversight and professional review and reporting of what happened (nature of management control)
3. Assessment: the alignment of the differing levers of control (strategic control, concepts and models)
4. Assurance: our accountability to stakeholders (using a balanced scorecard)

Question 2

Name some areas to evaluate and measure

Answer 2

• Financial measures - profitability, liquidity, wealth
• Productivity measures - people, product, resources
• Goals
• Stakeholders

Question 3

What is the balanced scorecard by Kaplan and Norton? FIIC

Answer 3

Considers strategic control from four different perspectives:
1. Financial - revenue, expenses, profits, cash flow, asset value
2. Internal business perspective - inventory levels, turnaround times, wastage, productivity
3. Innovation and learning perspective - new products/services, employee development, process improvements
4. Customer perspective - customer satisfaction, market share, brand strength, delivery times