Scribd
Upload
30 views

27balance Score Card

This document discusses implementing a balanced scorecard (BSC) as a mechanism for achieving sustainable development. It outlines key internal business process measures that should be included in a BSC for any commercial company, with a focus on inventory management. These include financial measures, customer measures, employee learning and growth measures, and common internal process measures. The importance placed on each measure may vary depending on a company's strategy and market position. A BSC can help companies translate their strategy into tangible goals that guide employees' actions and decisions. It is considered an effective tool for inventory management and informing decisions to support strategic objectives.

Uploaded by

Aisha Lukianchenko
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
30 views

27balance Score Card

This document discusses implementing a balanced scorecard (BSC) as a mechanism for achieving sustainable development. It outlines key internal business process measures that should be included in a BSC for any commercial company, with a focus on inventory management. These include financial measures, customer measures, employee learning and growth measures, and common internal process measures. The importance placed on each measure may vary depending on a company's strategy and market position. A BSC can help companies translate their strategy into tangible goals that guide employees' actions and decisions. It is considered an effective tool for inventory management and informing decisions to support strategic objectives.

Uploaded by

Aisha Lukianchenko
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 1

BALANCED SCORECARD IMPLEMENTATION AS MECHANISMS OF REACHING SUSTAINABLE DEVELOPMENT Olga Trubnikova NTUU KPI, Kyiv, Ukraine According to Programme

of Internal Trade Development [1], Ukraine has got such corresponding strategic objectives: establishing state-of-the-art standards of trade and consumer service; developing competitiveness among holesalers and retailers; optimi!ation and restructuring of distribution net ork; improving a s"stem of indicators used for statistical overseeing trade companies# business$ A t"pical enterprise invests about %&' [&] of its capital in inventories$ (hus, a compan"#s effectiveness substantiall" depends on amount of investments in inventories$ )o doubt, managing this kind of assets is essential$ *or its part inventor" management helps to optimise investing in inventories and means identif"ing periods and amount of orders for replenishing stocks$ (his implies balancing some e+penses that increase together ith inventories rise and those e+penses that decrease hen inventories go up$ Achieving aforementioned objectives demands s"stem approach in compan" management$ (herefore e believe inventor" management should be considered as an essential part of a trade compan"#s business $ ,uch top-companies as P&G, Unilever, Colgate-Palmolive, ond!alle, riti"# $meri%an To&a%%o, Campina, Danone, Co%a-Cola, 'errero (o%#e, Kraft 'ood" use strategic management in their business appl"ing )orton--aplan#s alan%ed )%ore%ard *+)C, $ .,/ as created in 1001 after a research stud" 23easuring 4erformance in the 5rgani!ation of the *uture6 conducted b" )orton 7nstitute$ 7t as a comple+ s"stem that thoroughl" measured a compan"#s business using financial and nonfinancial information$ 7t as based on principles of strategic management$ (his s"stem transforms a compan"#s mission, vision, and general strateg" into a s"stem of interconnected measures$ 8,/ enables identif"ing 9uantitative and 9ualitative indices that facilitate almost ever" emplo"ee#s comprehension of hat is necessar" to be done for achieving common strategic goal$ 8,/ enables managers# considering business in four perspectives :pic$ 1;$ Appl"ing this approach to a commercial compan" e can point out the follo ing ke" measures that sho a compan"#s effectiveness$ 7t also should be mentioned that a compan"#s strateg" influences importance of aforementioned perspectives$ (herefore, more important -47#s share ill be larger and vice versa$ *or instance, let us have a look at the strategies of ell-kno n 8oston /onsulting <roup#s $dvantage -atri. [=]$ 5ne can see there are a fe a"s of a compan"#s gro th ith regard to its t"pe of business: /ol!me, )talemated, )pe%iali"ed, and 'ragmented0 A special strateg" is proposed for each categor"$ >elevant strateg" is identified b" >57 and market share$ 7n order to keep leading positions in the market cost reduction strateg" is advised :as ell as b" 3ichael 4orter#s model; for companies here market share and profitabilit" are closel" associated, i$e$ those companies that can fulfil their competitive advantages through increasing output : /ol!me;$ *or this kind of enterprises measures of internal business processes ill be more valuable :inventor" level, customer service e+pense;$ 4rofitabilit" in )talemated companies is lo for

emplo"ee learning and gro th measures ill be more important for such kind of companies upgrading them to more profitable categor"$
all competitors regardless of si!e$ (hus (he profitabilit" of businesses in 'ragmented sector is not correlated ith market share$ 4oor performers can be large or small and good performers are also independent of si!e$ (he largest profitabilit" in )pe%iali"ed categor" is enjo"ed b" small businesses able to distinguish themselves among their competitors b" follo ing a focused strateg"$ C!"tomer section :being stable ill ensure fi+ed sales; ill be the most important for this t"pe of companies $ As for creating relevant 8,/, it is orth to point out a list of obligator" measures that include evaluation of inventor" management$ >egardless of a compan"#s strateg" the" all ill be included though their rate ill be different - *inancial 3easures, /ustomer 3easures, ?mplo"ee @earning and <ro th 3easures, /ommon 7nternal 4rocess 3easures$ (o reach ,ustainable Aevelopment compan" should put it like a part of strategic vision and reflect in -47s accordingl"$ 7nternational companies# successful appl"ing 8,/ as an instrument of translating a compan"#s strateg" to emplo"ees# jobs is considered stimulating for adaptation of 8,/ in the local market$ 3easures that are essential for a commercial compan"#s 8,/ ere highlighted$ (he" should be used for information support facilitating decision making in inventor" management $ References 1. http:BB!akon$rada$gov$uaBcgi-binBla sBmain$cgiCnregDE=&-&110-'?* &$ )ikanova 7$A, ,trateg" and value of commercial bankB:Alpina-8usiness 8ooks, &11%$ F =1% p$ =$ Carl 10 )tern , George )talk 0 4erspectives on ,trateg" from the 8oston /onsulting <roup, 100G$ - pp$ HE-H0

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy