Learning and Growth Perspective of a Company - Essay Example

Balanced Scorecard: ADI Travel Agency Mission and vision - to improve individual lives and freedoms by partnering with governments and civil sector to address domestic, national, and global issues (Blanke, 2088). Business Name       Balanced Scorecard — Financial Metrics     Date       Financial Metrics       Financial Objective Type Measures What will be measured? How will it be measured? Target Goals What is your quantifiable success goal? Supporting Initiatives What specific action plans will be done to achieve your target goal? Increase market share  Measured by % rate of annual growth  Yr (2012) increase market share by 15% Yr (2015) – 45%  improve competitive position, launch new directions and service Increase revenue  Measured by % rate of revenue growth  Yr (2015) – 20%  Evaluate economic threats while considering developing of new directions (elasticity of demand, exchange and interest rates, income growth, etc.) increase sales by listening to the customers and improving quality of service (see customer and learning perspective) Improve competitive position  Increased market share (%), measured annually    determine the relative “power of each competitive force; gather information on both primary and secondary competitors; develop a highly competitive strategy after market analysis Business Name       Balanced Scorecard — Customer Metrics     Date       Customer Metrics       Customer Objective Type Measures What will be measured? How will it be measured? Target Goals What is your quantifiable success goal? Supporting Initiatives What specific action plans will be done to achieve your target goal? Increase customer’s retention and loyalty  % of repeated visits of customers to our travel agency (will be measured through the ADI’s client database) Gradual Continued growth Yr (2012) - 10% Yr (2015) - 30% establish long-term relationships with core repeat users;  provide comfort and convenience to clients; ensure safe and secure services by analyzing current global political, economic and environmental situations and providing a travel advisory service for the clients travelling or those going to travel to certain regions known for the political unrest Increase customer satisfaction  % of customers satisfied with our services measured trough surveys conducted among our clients  Yr (2015) customer’s satisfaction should exceed 85%  provide a high-quality of service, increase communication with current and potential customers, analyze customer’s feedback and response adequately to improve service; rely on the customer’s wants and needs Increase customer base  %, measured through the client’s base  Yr (2015) – 40% Develop new market niche, propose new directions that capture various segments; develop new directions in global tourism, focus on the natural environment and wildlife;focus on the issues of cultural diversity, providing a wider variety of skills needed for international customers Business Name       Balanced Scorecard — Internal Business Process Metrics     Date       Internal Business Process Metrics     Internal Objective Type Measures What will be measured? How will it be measured? Target Goals What is your quantifiable success goal? Supporting Initiatives What specific action plans will be done to achieve your target goal? Improve technological capacity (IT development)  % of increased information delivery, concerning offerings, prices, schedules, etc.  Yr (2015) – 50%  find and develop new means to distribute travel and hospitality products and services; develop marketing strategies that will make customers less independent; to save costs for IT support it is possible to outsource this business (for instance to India) Increase amount of operations  Measured by % of increased operations comparing with the historical data  Yr (2015) – 75%  Launch marketing strategy aimed at frequent flyers Find affordable office space in good location Measured by profitability ($paid for office space vs. $ earned) Yr (2015) – increase profitability in result of good office location by 25% make analysis of equity market, consider 3alternatives: buying/leasing/rent Business Name       Balanced Scorecard — Learning and Growth Metrics     Date       Learning and Growth Metrics     Learning Objective Type Measures What will be measured? How will it be measured? Target Goals What is your quantifiable success goal? Supporting Initiatives What specific action plans will be done to achieve your target goal? Employees development Measuring the % of increased employee’s performance; measured by % of sold services  Yr (2012) – sales should increase by 10-15% Yr (2015) – by 40% Continuous learning strategy: to provide training and educating seminars; to motivate employees by providing bonuses (%) of each service sold; to encourage international experience Set positive corporate culture  Measured by employees’ retention and increased feedback (%)   Yr (2015) -  employees retention – 90-95% Yr (2015) – employee’s feedback – by 80%  incorporate positive corporate culture; encourage teamwork and cooperation; adopt a cultural philosophy comprised of education and professionalism within the travel industry Increase international partnerships with strategic partners measured in times Yr (2015) – in two times negotiate with partners abroad, consider legal and regulatory issues, and political stability while setting strategic partnership Market expansion: enter new directions  Measured by sales growth in new markets (%)  Yr 2011 > 15% enter a joint venture with a city-owned public use-airport and few mid-level hotel chains;  analyze global trends, evaluate competition rates; develop competitive strategy on ecotourism; develop new directions that will be different from those already existing (apply innovative approach) Analysis of the Balanced Scorecard: Cause and Effect explanations Learning and Growth Perspective The company needs to implement four major objectives, identified in the category of Learning and Growth Perspectives. These include: employees development, setting positive corporate culture, increase international partnerships with strategic partners worldwide and entering new markets. So as the tourism business relies heavily on the quality of service, the company needs to focus on the employees’ development, ensuring professionalism and high responsibility. For this purpose, ADI Travel Agency needs to launch a continuous learning strategy by training and educating staff, motivating properly employees, and encouraging international experience. Undoubtedly, these measures will require significant efforts and costs. However, by implementing this strategy, ADI employees will increase customer’s satisfaction, by providing adequate and professional service to the customers. High-service and focus on cultural diversity will enable company to gain a competitive advantage, to increase the market share, and thus to increase profits. By setting positive corporate, ADI Travel will also be enabled to utilize its staff more efficiently, simultaneously increasing employees’ retention and job satisfaction. Increasing international partnerships with strategic partners worldwide, ADI Travel Agency will be enabled to strengthen its market position, to increase its capacity, and will be enabled to capture new markets. This diversification will also increase customer’s loyalty and will create customers’ value. Efficient implementation of the strategy will cause to financial and reputational benefits. Performing the strategy of joint-venture with a city-owned public-use-airport and a few mid-level hotel chains, ADI Travel Agency will allow company and its partners to extract a share of additional benefits. ADI, as a new business, would be entering an unfamiliar market and the joint venture would prove a faster avenue that to enter alone. Internal Business Process Perspective Relying on the SWOT analysis and current global trends, there have been identified three major objectives for the development of ADI Travel agency’s business. The perspectives referring to the Internal Business Processes category highlight such objectives: to find affordable office in good location, to improve technological capacity (IT development), and to increase amount of operations done per year. By finding an appropriate office space for the ADI Travel agency, customer’s loyalty and confidence will increase, as well as the customer’s awareness. This will lead to increased sales and increased revenues. By improving technological capacity, company will be enabled to be more competitive comparing to other firms, its information delivery will be increased, clients will receive timely offerings, schedules, prices, etc. Thus, ADI customers will be more informed about ADI Travel Agency proposals. This will lead to increased market share and thus increased revenues. By launching marketing strategy aimed at frequent flyers, the company will increase amounts of operations, achieving “economies of scales”. It will be a competitive advantage of the company which will lead to positive financial statements. Customer Perspective From the customer’s perspective, there were identified three major objectives for the ADI Travel Agency’s success. These objectives require: to increase customer’s retention and loyalty, to increase customer’s satisfaction, and to increase customer’s database. To increase customer’s retention and loyalty, and customer’s satisfaction company has to establish long-term relationships with the core repeat users, provide comfort and convenience to clients; provide sufficient information and timely delivery (discussed previously). High service will also cause increase of customer’s retention, because quality of service is one of the main factors in tourism business. Finally, the increase of customer’s retention will lead to stable company’s business, ensuring constant sales and thus profits. If the clients will be satisfied they will advise our company to their friends, colleagues, relatives. Such mouth-to-mouth advertisement will increase customers’ awareness and company’s market share. Increased market share will enable company to be stronger among competitors, and will lead to growing profits. By increasing customer’s base, the company will be enabled to give its advertisement to its customers who are more likely to use ADI Travel services. This will also positively influence financial statement of the company. Financial Perspective To increase profits, ADI Travel agency needs to implement three major financial objectives: to increase its market share, to increase its revenues, and to improve competitive position. All these strategies will enable company to earn profits, and to invest part of earned money for the further development. Read More