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The balanced scorecard revolves around this strategy.
In relation to growing the revenues, the shift of emphasis on traditional ticketing distribution will enable the company to cut on various items on its administrative overhead. This entails a shift in market strategy, mainly by re-positioning the Yunnan Lucky Air brand to becoming an on-line travel leader through its e-commerce business model. These changes are reflected on the perceptions as objectives about the brand and the website on the customers perspective, and would later transform into expectations of customers. In order to meet these expectations, various internal processes in line with the adoption of the e-commerce business model in terms of sales and distribution should be addressed. Lastly, learning and growth objectives are related to the changes in the companys HR policies because of the new organisational structure. Fulfiling these objectives tell about how the strategies will be carried out as soon as changes are enacted.
The balanced scorecard has been widely accepted by the business community since its introduction by Norton and Kaplan in 1992 (Kaplan & Norton 1993). This paper aims to explore the benefits as well as the limitations of the framework in order to recommend the adoption of it to the business practices of the Chinese airline company, Yunnan Lucky Air.
One major benefit of the balanced scorecard is that the framework provides a multidimensional assessment of the issues in line with a companys vision and strategy using the four perspectives (Dror 2008). In the case of Yunnan Lucky Air, for instance, setting an expansion strategy can be off-the-target if the objectives in line with the strategy are not coordinated by these four objectives. If the company chooses to expand with only regard to the customers and not its shareholders, an expansion strategy of continuing the low-cost positioning
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22 Executive Summary In today’s dynamic environment, it is crucial for every organisation to ensure that their performance level is measured from time to time and one of the most effective ways is to use Balanced Scorecard. The scorecard has found to have strategic importance as the card is developed in linkage with the vision and goals of the organisation and adequate awareness is created within the organisation so that every stakeholder is well-aware of the importance of its implementation in the business activities.
Performance measurement tools are also used by organizations to compare the desired performances with the actual performances and then actions can be taken to achieve the desired results by eliminating any kind of discrepancies. Performance management tools are very beneficial for organizations as it allows the management to forecast how the organization has performed and how the organization needs to go in future (Chavan, 2009).
The effective implementation of balanced scorecard calls for an effective control system that incorporates values, measures as well as other valuable measures that contribute to an organization’s overall well-being. By drawing upon sociological, psychological and economics studies on the selection and implementation of a balanced scorecard by Citibank
It is used by companies to track progress as well as manage the implementation of their strategies (Horngren et al 2011). BSC represents a set of measures that are carefully selected from an organisation’s strategy (Niven 2008; qtd. in Finkler 2010, p. 299).
The purpose of this report is centered on the company’s plan to purchase an existing dry dock in another location, so that they could cater new customer requirements in terms of large-sized vessels. The plan would bring advantages to the company’s financial performance based on the monitoring of cash flows; however, the positive forecast is limited to the financial aspect.
The performance of the company has been assessed under five different segments and the illustrations are based on the annual reports of 2012 and 2011. The first segment of this study is dedicated towards the mission and vision of the company, which further extends towards describing the strategic direction of the company in the next five years.
It critically evaluates the use of the "Balanced Scorecard as part of modern business management accounting. In addition the paper tries to understand the way in which performance can be assessed in terms of financial and non-financial measures and to appreciate the use of modern methods of performance measurement.
From that study the came to know that financial measures of performance were ineffective in the modern business. the financial performance of the company should be governed in such a way that a value is being created for the company as a whole. After discussion they settled an idea of scorecard featuring performance measuring activities through out the organization i.e.
Thus this study focuses on the needs and the subsequent problems, difficulties, issues and implications faced by organizations in implementing and integrating strategic information systems into the BSC framework through effective ERP systems. This research effort has particularly identified the existence of a positive correlation between an efficient ERP systems environment and the effective design, development, implementation and integration of information systems at the organizational level into the operational environment of the BSC framework.