- 12 Marks
Question
In a table format with the heading “Perspective” and “Outcome measures,” identify the Balanced Scorecard FOUR (4) aspects of performance using the information provided from the SBL case study. (12 marks)
Answer
| Perspective | Outcome Measures |
|---|---|
| Financial Perspective | – Growth in profit before tax – Return on investment – Sales growth by division and region |
| Customer Perspective | – Customer satisfaction rate – Delivery timeliness (percentage of deliveries on time) – Customer complaint ratio |
| Internal Processes Perspective | – Production capacity utilization – Reduction in manufacturing defects – Lead time for product delivery |
| Learning and Growth Perspective | – Employee productivity rate – Employee retention and satisfaction – Investment in research and development |
Explanation of the Perspectives:
- Financial Perspective:
Measures the financial outcomes of SBL’s strategies. For SBL, financial performance indicators such as profit growth, return on investment, and sales by division are key to maintaining profitability in a competitive pharmaceutical market. - Customer Perspective:
Focuses on how well SBL is serving its customers. Key measures include customer satisfaction rates, timely delivery of pharmaceutical products, and the number of customer complaints received. These indicators are critical to retaining market share and maintaining the company’s competitive edge. - Internal Processes Perspective:
Tracks the efficiency and effectiveness of SBL’s operations. Metrics such as production capacity utilization, defect reduction in manufacturing, and lead time for product delivery are crucial to improving operational efficiency, especially given SBL’s challenges with an obsolete plant. - Learning and Growth Perspective:
Measures how well SBL is fostering innovation and developing its workforce. This perspective includes metrics like employee productivity, retention, and investment in research and development to ensure that SBL can sustain long-term growth and innovation in the pharmaceutical industry.
(Marks: 3 marks for each perspective and outcome measures = 12 marks)
- Topic: Strategy implementation
- Series: MAY 2021
- Uploader: Dotse