The pre-release material is below together with some further information and the requirements of the question. Ringle Company is a very successful multi-national retail company which has been selling a large range of white goods (refrigerators, freezers, washing machines, tumble dryers) for a number of years. One year ago, it sourced a new overseas supplier of these goods who were able to provide the goods at a much lower cost due to their cheap labour rates. The overseas supplier also produces microwaves and other kitchen appliances. Ringle Company had been planning to move into the market for kitchen appliances and therefore they took the decision to commence this process by stocking these microwaves for sale to their customers. If successful, they would then consider expanding to other kitchen appliances. Ringle Co were using external hauliers for delivery of their goods and were able to offer their customers next day delivery on all their orders within the UK and a 3-day delivery throughout Europe. Outside of Europe delivery time was 5 – 10 days. However, it was a costly service and therefore in order to reduce costs and maintain control over the deliveries, Ringle Company formed their own logistics company to take over the delivery of the goods from their external hauliers, with the intention of maintaining the same delivery times. All of these changes were implemented from 1st April 2020. Over the last financial year there has been a 30% growth in the white good market and in order to remain competitive, Ringle Co has not increased prices. Extracts from the financial accounts for Ringle Ltd for the last two years are as follows: Year ended 31.3.2022 Year ended 31.3.2021 £000 £000 Sales 97,000 84,000 Cost of Sales (53,000) (52,000) Gross Profit 44,000 32,000 Administration Expenses (2,800) (1,800) Distribution Expenses (10,500) (9,800) Other Operating Expenses (200) (180) Net Profit 30,500 20,220 The administration costs include the running of the customer service department which deals with customer complaints. In 2021, this was £980,000 and in 2022 it was £2,200,000. Complaints related to the quality of the goods and the delivery service. Sales of microwaves included in the above sales figures are £14,500,000 in 2021 and £13,900,000 in 2022. Non-financial data has also been provided for the two years: Year ended 31.03.2022 Year ended 31.03.2021 Percentage of orders delivered on time by their own logistics company 75% 95% No. of customers complaints 1,200,000 430,000 Total no. of customers 7,050,000 6,100,000 No. of new customers 700,000 730,000 No. of staff employed 5,100 4,800 No. of staff who have undertaken training 2,300 2,900 Ringle Co measure both the financial and non-financial performance of the company and have recently commenced presenting the results using a balanced score card approach. Required: Identify and define the four perspectives that are traditionally used within the balanced scorecard and explain what each of the perspectives aims to measure.
The pre-release material is below together with some further information and the requirements of the question.
Ringle Company is a very successful multi-national retail company which has been selling a large range of white goods (refrigerators, freezers, washing machines, tumble dryers) for a number of years. One year ago, it sourced a new overseas supplier of these goods who were able to provide the goods at a much lower cost due to their cheap labour rates.
The overseas supplier also produces microwaves and other kitchen appliances. Ringle Company had been planning to move into the market for kitchen appliances and therefore they took the decision to commence this process by stocking these microwaves for sale to their customers. If successful, they would then consider expanding to other kitchen appliances.
Ringle Co were using external hauliers for delivery of their goods and were able to offer their customers next day delivery on all their orders within the UK and a 3-day delivery throughout Europe. Outside of Europe delivery time was 5 – 10 days. However, it was a costly service and therefore in order to reduce costs and maintain control over the deliveries, Ringle Company formed their own logistics company to take over the delivery of the goods from their external hauliers, with the intention of maintaining the same delivery times.
All of these changes were implemented from 1st April 2020.
Over the last financial year there has been a 30% growth in the white good market and in order to remain competitive, Ringle Co has not increased prices.
Extracts from the financial accounts for Ringle Ltd for the last two years are as follows:
|
|
Year ended 31.3.2022 |
Year ended 31.3.2021 |
|
|
£000 |
£000 |
|
Sales |
97,000 |
84,000 |
|
Cost of Sales |
(53,000) |
(52,000) |
|
Gross Profit |
44,000 |
32,000 |
|
Administration Expenses |
(2,800) |
(1,800) |
|
Distribution Expenses |
(10,500) |
(9,800) |
|
Other Operating Expenses |
(200) |
(180) |
|
Net Profit |
30,500 |
20,220 |
The administration costs include the running of the customer service department which deals with customer complaints. In 2021, this was £980,000 and in 2022 it was £2,200,000. Complaints related to the quality of the goods and the delivery service. Sales of microwaves included in the above sales figures are £14,500,000 in 2021 and £13,900,000 in 2022.
Non-financial data has also been provided for the two years:
|
|
Year ended 31.03.2022 |
Year ended 31.03.2021 |
|
Percentage of orders delivered on time by their own logistics company |
75% |
95% |
|
No. of customers complaints |
1,200,000 |
430,000 |
|
Total no. of customers |
7,050,000 |
6,100,000 |
|
No. of new customers |
700,000 |
730,000 |
|
No. of staff employed |
5,100 |
4,800 |
|
No. of staff who have undertaken training |
2,300 |
2,900 |
Ringle Co measure both the financial and non-financial performance of the company and have recently commenced presenting the results using a balanced score card approach.
Required:
Identify and define the four perspectives that are traditionally used within the balanced scorecard and explain what each of the perspectives aims to measure.
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