...CMR 073 D Linking the Balanced Scorecard to Strategy O N Robert S. Kaplan David P. Norton O S T everal years ago, we introduced the concept of a “Balanced Scorecard” for motivating and measuring business unit performance.1 The Scorecard, with four perspectives—financial, customer, internal business processes, and learning and growth—provided a balanced picture of current operating performance as well as the drivers of future performance (see Exhibit 1). Can Business Operate with a Balanced Scorecard? CO Some argue that managers cannot operate with multiple measurements of business-unit performance. While they recognize that aggregate financial measures (such as operating income, return on investment, and economic value added) are not perfect by themselves, they claim that financial measures at least are well understood and provide clear, unambiguous, and objective goals on which all organizational participants can focus. Such people feel that multiple measures—some financial and some non-financial—are confusing and lead to ambiguous, often conflicting, signals about what the organization values. PY We disagree. Imagine entering the cockpit of a jet airplane and observing that there is only a single instrument. How would you feel about flying on that plane after the following discussion with the pilot: Reprinted by permission of Harvard Business School Press. Adapted from The Balanced Scorecard by Robert S. Kaplan and David...
Words: 10522 - Pages: 43
...and monitoring the performance of a process. The cornerstone of an effective process management tool is the concept of reporting and improving processes with the goal of meeting consumers requirement and profitably. For a process to become effective, management must meet customer satisfaction and profitably that interfaces and extend into, and outside, the organization, beyond the immediate customers and profitability goals. The focus of this paper is improving process management at Hartman Industries, LLC. The process management that needs improvement is the company’s flowchart. Within this paper the team will also summarize, explain, and define process management as it relates to the company’s flowchart. The team will also present an implementation plan for the chosen quality improvement process and an example of the quality tools use for reducing process variability. “Companies are often in search of ways to provide a high-quality product at a reasonable price” (Kömrcü & Şahin, 2012, p. 484). Improving quality is a topic for companies small and large because producing a quality product greatly affects the survival of companies. Companies use various methodology and tools to improve quality. Hartman Industries use a flowchart as a visual representation for the company’s production process. Each step in the flowchart represents a part of the process in the sequence of activities involved in manufacturing the molds. Hence the process must follow logical steps for the process...
Words: 559 - Pages: 3
...Implementation of Strategies and Tactics for Water Company Strategic Objective According to the vision and mission of Mapua (spring) water company, the main objective of the company is to gain highest shares of the market by providing highest quality water with low cost in comparison to its competitors. By providing high quality, the management wants to gain customer satisfaction and maintain a long term relationship with them. In order to achieve the objective of the company, Mapua also want to increase the performance level of the employees by motivating them and providing advanced technologies. Strategies and Tactics to achieve the Objectives ➢ The management should understand the need of market, by conducting a market analysis. Management should conduct a survey to understand the taste, quality and price preferred by the customers (Wexelbaum, n.d.). ➢ In order to promote its product the management should use attractive promotion strategies and communication technique. ➢ Every consumer should have the knowledge about the product of company. So the management should communicate about product in the market with the help of latest information technologies. The management should use internet, newspaper, television to advertise this product. ➢ Timing is also one of the important factors to implement various strategies and tactics. The management should evaluate the market needs and strategies of competitors on time. The management should communicate...
Words: 864 - Pages: 4
...business is subject to the same conditions, opportunities, and challenges when it comes to developing a competitive strategy. Yet, when the time comes for companies to actually put their strategies into practice, those that possess the ability to execute them effectively and sustainably are at an advantage. The key to success is therefore not only how a strategy is devised, but also how it is actually executed. Besides addressing the challenges associated with strategy development, discussions in recent years are increasingly dealing with problems of strategy execution. According to a study published in the Harvard Business Review, companies realize...
Words: 1501 - Pages: 7
...CHAPTER 12 Implementing Strategy in Companies That Compete in a Single Industry Synopsis of Chapter Chapter 12 examines how managers can best implement their strategies in single-industry firms in order to achieve a competitive advantage and superior performance. First, the main elements of strategy implementation—structure, control systems, and culture—are analyzed in detail, focusing on the way they work together to create an organizing framework. Then the chapter turns to the topic of using structure, control, and culture at the functional level to build distinctive competencies. After that, the chapter addresses the challenges of implementing the generic business strategies of cost leadership or differentiation in a single industry. The final section covers restructuring and reengineering, two strategies that single-business firms can use to improve corporate performance. The next chapter takes up where this one leaves off and examines strategy implementation across industries and across countries—that is, implementing corporate and global strategy in firms that compete in more than one industry. Teaching Objectives 1. Introduce the main elements of strategy implementation—structure, control systems, and culture—and their relationships to each other. 2. Demonstrate how structure, control, and culture can build distinctive competencies at the functional level. 3. Describe the use of structure, control, and culture in implementing a single-business...
Words: 5509 - Pages: 23
...MGMT19128 Assessment 2 – Essay - Woolworth’s Strategy and its Implementation Lecturer – Jessica Kennedy Due Date – 11:00pm Thursday 26th April 2012 Word Count – 2669 In order to analyse Woolworths’ strategy and its implementation, consideration will be given to the competitive environment that exists between Woolworths and Wesfarmers (Coles), the notion of competing duopolies and the role that management plays in the process. The purpose of this essay is to discuss competing duopolies and how they impact on the development of an organisation’s strategy and implementation. In a duopoly two firms compete for market share, so strategic thinking by management plays an important part in strategy development and the creation of a competitive advantage. Strategic thinking allows management ‘to more fully capture and analyse the relevant forces creating new market opportunities and business strategy requirements’ (Cravens, Piercy & Baldauf 2009, p.32). Woolworths has for many years been the dominant player in the Food and Staples Retailing Industry but since Wesfarmers’ takeover of Coles, Woolworths has had to be more on the defensive matching Coles in its low-cost pricing strategy on many product items (Sell on News 2011). Whilst Coles is trying to regain market share within its supermarket division, Woolworths is endeavouring to develop operational scope in the area of hardware, where Coles has held a monopoly situation (Sell on News 2011). In competing duopolies,...
Words: 3143 - Pages: 13
...Strategy Formulation and Implementation MBA 980 Spring, 2009 Professor Jay Dial Office 860 Fisher Hall Email dial.12@osu.edu Phone 292-5438 Reading packet There is a required reading packet available at Uniprint-Tuttle Park that includes course readings, cases and lecture notes for classroom discussion. This is copyrighted material and each student must purchase an individual copy of the reading packet. Additional highly recommended readings will be selected from Management Skills: A Jossey-Bass Reader (ISBN # 0-7879-7341-6). It is available from both BarnesandNoble.com and Amazon.com. Course Overview This course is about the creation and maintenance of long term value for the organization. It is concerned with both the determination of the strategic direction of the firm and the management of the strategic process. The course builds on prior studies of functional areas while recognizing that most real business problems are inherently multi-functional in nature. Thus, this course employs an explicitly integrative approach in which we adopt the role of the general manager who has the responsibility for the long-term health of the entire organization. The course would be taught primarily through the case method of instruction. Course Objectives 1. Understand the nature of strategic competitiveness and develop the ability to analyze the competitive environment facing a firm, assess the attractiveness of the industry and isolate potential...
Words: 6376 - Pages: 26
...uStrategy Implementation at Dell Dell was one of the fastest-growing companies of the 1990s, and its stock price increased at the rate of 100% per year, delighting its stockholders. Achieving this high return has been a constant challenge for Michael Dell. One of his biggest battles has been to manage and change Dell’s organizational structure, control systems, and culture as his company grows. Michael Dell was 19 in 1984, when he took $1,000 and spent it on the computer parts he assembled into PCs that he sold over the phone. Increasing demand for his PCs meant that within a few weeks, he needed to hire people to help him. Soon he found himself supervising three employees who worked together around a 6-foot table to assemble computers while two more employees took orders over the phone. By 1993, Dell employed 4,500 workers and was hiring more than 100 new workers each week to keep pace with the demand for the computers. When Dell found himself working 18-hour days managing the company, he realized that he could not lead it single-handedly. The company’s growth had to be managed, and he knew that he had to recruit and hire strategic managers who had experience in managing different functional areas, such as marketing, finance, and manufacturing. He recruited executives from IBM and Compaq. With their help, he created a functional structure, one in which employees were grouped by their common skills or tasks they performed, such as sales or manufacturing, to organize...
Words: 957 - Pages: 4
...Part Five GLOBAL STRATEGY, STRUCTURE, AND IMPLEMENTATION Chapter Eleven The Strategy of International Business OBJECTIVES • To identify how managers develop strategy • To examine industry structure, firm strategy, and value creation • To profile the features and functions of the value chain framework • To assess how managers configure and coordinate a value chain • To explain global integration and local responsiveness • To profile the types of strategies firms use in international business Chapter Overview Chapter Eleven presents tools and concepts used in analyzing and formulating international business strategy. First, the relationship between industry structure and competition in global industries is examined. Next, value chain analysis is used to identify the internal capabilities of the firm that can be leveraged to create competitive advantage. Effective international strategy depends greatly on the proper configuration and management of a company’s global value chain. The sometimes conflicting demands of global integration versus local responsiveness are examined. Finally, a typology of strategic alternatives including multidomestic, international, global, and transnational strategies is presented. CHAPTER OUTLINE OPENING CASE: Value Creation in the Global Apparel Industry [See Fig 11.1 and Map 11.1.] Zara, a large clothing retailer headquartered in northwest Spain, has used an innovative...
Words: 5816 - Pages: 24
...MODES OF ENTRY USED BY INTERNATIONAL FIRMS TO ENTER INTO NEW MARKETS. TERMPAPER SUBMITTED IN PARTIAL FULLFILMENT OF THE REQUIREMENTS OF THE COURSE GLOBAL STRATEGIC MANAGEMENT, DEPARTMENT OF BUSINESS ADMINISTRATION, AND UNIVERSITY OF NAIROBI. DATE17TH MARCH 2012 Modes of entry used by international firms to enter into new markets. Introduction A mode of entry into an international market is the channel which an organization employs to gain entry to a new international market. International firms use several entry modes to expand their businesses globally, and to enter into new markets, there are some basic decisions that the firm must takes before foreign expansion like: first they determine which markets to enter, when to enter those markets, and on what scale. The decision on which foreign markets to enteris based on the nation’s long run profit potential.-The international firm looks in detail at economic and political factors which influence foreign markets.-Long run benefits of doing business in a country depends on following factors:- Size of market (in terms of demographics)- The present wealth of consumer markets (purchasing power)- Nature of competition. By considering such factors firm can rank countries in terms of their attractiveness andlong-run profit. The time of entry is an important factor to be considered. Entry is early when an international business enters a foreign market before other foreign firms and late when it enters after other international businesses...
Words: 2080 - Pages: 9
...dynamic business, flexible enough to respond to ever changing customer needs, which can introduce innovations in products and is backed by complete customer satisfaction(Woolworths Limited, 2013). Being in the retail industry,which is one of the largest employers in Australia, employing over 1.5 million people and an overall worth of AUD 329 billion, there is plenty of opportunity for growth, and due to increasing population, the demand is not expected to fall for the products Woolworth has to offer (About.com, 2013), especially when its corporate strategy is need-specific and revolves around satisfaction of the customer. For the purpose of economy-wide and industry-wide factors which may influence future performance of Woolworths, Porter’s five forces model has been utilized. It has been concluded as an appropriate model which can adequately analyze a firm’s internal and external forces which affect its current and future strategies(CIMA, 2007). The five forces are bargaining power of customers, bargaining power of suppliers, threat of new entrants, threat of substitute products or services, intensity of competitive rivalry(Porter, 2008). The analysis below revolves around the internal and external factors that affect or may affect the future strategic direction of Woolworths Limited. Bargaining power of suppliers: Supermarkets in Australia offer similar products to their customers and since the suppliers who provide those goods to...
Words: 856 - Pages: 4
...Among the many areas we touched on in this class, the first thing I picked up on as being important is to ask myself, “Why it is important to have an understanding of who I am?” By understanding my strengths and weaknesses it allows me to pursue a career in a field where my strengths will accentuate my position and where any weaknesses will either be strengthened or will not be a factor. By examining my own skills and qualities as they pertain to the occupation I am pursuing, I will be better able to market those to prospective employers. By examining my weaknesses in skills and qualities I create an opportunity to improve myself and my self value. I have also learned the importance of, not just setting career-related goals – but writing them down, as well. My next step after graduation will be to closely examine my options as far as continuing in running my own local business or to pursue employment with a larger corporation that might perhaps offer an increased income as well as medical benefits. I understand now that research is an important part of the Career Development Process and that it is necessary to reach any goals that I set for myself. Researching these companies in my chosen career field will allow me to choose the best option for employment with fewer “surprises” after I commit to take a position. Knowing the kinds of company-related information I will need to research will enable me to make good job search and career choices. I also learned many things...
Words: 818 - Pages: 4
...Among the many areas we touched on in this class, the first thing I picked up on as being important is to ask myself, “Why it is important to have an understanding of who I am?” By understanding my strengths and weaknesses it allows me to pursue a career in a field where my strengths will accentuate my position and where any weaknesses will either be strengthened or will not be a factor. By examining my own skills and qualities as they pertain to the occupation I am pursuing, I will be better able to market those to prospective employers. By examining my weaknesses in skills and qualities I create an opportunity to improve myself and my self value. I have also learned the importance of, not just setting career-related goals – but writing them down, as well. My next step after graduation will be to closely examine my options as far as continuing in running my own local business or to pursue employment with a larger corporation that might perhaps offer an increased income as well as medical benefits. I understand now that research is an important part of the Career Development Process and that it is necessary to reach any goals that I set for myself. Researching these companies in my chosen career field will allow me to choose the best option for employment with fewer “surprises” after I commit to take a position. Knowing the kinds of company-related information I will need to research will enable me to make good job search and career choices. I also learned...
Words: 347 - Pages: 2
...Intarnational issues in strategy implementation Some obstacles to effective execution The road to effective strategy execution is full of potholes and dangers. What are some of them? * Planning and execution are interdependent. Strategy formulation and implementation are separate, distinguishable parts of the strategic management process. Logically, implementation follows formulation; one cannot implement something until that something exists. But formulation and implementation are also interdependent, part of an overall process of planning-executing-adapting. This interdependence suggests that overlap between planners and “doers” improves the probability of execution success. Not involving those responsible for execution in the planning process threatens knowledge transfer, commitment to sought-after outcomes, and the entire implementation process. * Execution takes time. The successful implementation of strategy takes more time than its formulation. This can challenge managers’ attention to execution details. The longer time frame can also detract from managers’ attention to strategic goals. Controls must be set to provide feedback and keep management abreast of external “shocks” and changes. The process of execution must be dynamic and adaptive, responding to unanticipated events. This imperative challenges managers responsible for execution. * Execution involves many people. Strategy implementation always involves more people than strategy formulation. This presents...
Words: 2031 - Pages: 9
...the past 2 years, Delhi Commonwealth Games and Beijing Olympic games frequently came across several obstacles during the core element of strategy implementation. These obstacles were due to lack of operations in financial strategy, marketing, R&D, etc. This stage is considered as crucial component of the strategic management process which helps in putting strategic plans in practice. In a review it’s stated that the individual barriers to strategy implementation that have been encountered fit well into following interrelated categories: too many conflicting priorities, interfunctional conflicts, a poor vertical communication and inadequate management development. This topic furnishes us with an overview relating to the strategies, strategic implementation, and obstacles reflecting in the Delhi Commonwealth Games 2010 and Beijing Olympic games2008. Literature Review on Strategy Implementation “Strategy implementation may be viewed as a process inducing various forms of organizational learning, because both environmental threats and strategic responses are a prime trigger for organizational learning processes “(Lehner, 2004) Following to this we review that it’s a quiet a complicated task for any management team, making a strategy perform or execute, implementing the ideas all throughout the organization. Strategy implementation is considered mostly as something of an expertise and its research history has formerly been illustrated as fragmented and diverse. Soft...
Words: 970 - Pages: 4
