BUS 499 MoD-5 (SLP) Integation Causal & Strategy - Essay Example

ooking at this strategy and its impact on financial performance, it can be concluded that this strategy will lead to an increase in revenues, which in turn would lead to greater operating profits and net income. Since the company will add new competencies in its operations; these competences, presumably will enable it to achieve economies of scale in its operation and reduce unit price of the product. This coupled with an increase in sales volume will lead to an increase in the company’s profit margins, which ultimately will be reflected on the company’s annual profits.

In this way, the balance scorecard approach enables the company to achieve its two foremost financial objectives: increasing the company’s profitability and maximizing the returns of stockholders of the company. By accomplishing both these objectives, the company will ensure future survivability and growth. Kaplan, R. S., and Norton, D. P. (1992). The Balanced Scorecard: Measures That Drive Performance. Retrieved May 17, 2012, from http://library.tmu.edu.tw/news/%5BHarvard%20Business%20Review%20-%20January-February%201992%5D%20-%20Kaplan%20&%20Norton%20-%20The%20Balanced%20Scorecard%20-%20Measures%20That%20Drive%20Pe.

pdf Kaplan, R.S. and Norton, D.P. (2004). Measuring the strategic readiness of intangible assets. Retrieved May 17, 2012, from http://www.cma-slp.com/onlinelibrary/OL_English/Strategy%20Implementation/Management%20Accounting/MeasuringTheStrategicReadinessofIntangibleAssets.pdf  Lawrie, G., and Cobbold, I. (2004). Third-generation balanced scorecard: evolution of an effective strategic control tool. International Journal of Productivity and Performance Management, 53(7), 611 – 623. Palladium.

(2011, June 8). Palladium balanced scorecard hall of fame for executing strategy. Retrieved May 17, 2012, from Roos, G., and Roos, J. (1997). Measuring Your company’s Intellectual Performance.