1.
Introduction: The company uses various performance measures to determine whether the performance of the company is in line with the strategies of the company. For this purpose, it uses balanced scorecards consisting of various performance measures which are determined by considering the strategic goals of the company.
To provide: Plausible performance measures for each comment raised in a brainstorming session.
2.
Introduction: If-then hypothesis statements are built to establish the causes and effect relationships between the performance measures in the balanced scorecards. These help in determining whether the performance measures in the balanced scorecards contribute to the strategic goals of the company or not.
To build an if-then hypothesis statement for the strategy.
Want to see the full answer?
Check out a sample textbook solutionChapter 12 Solutions
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
- Instructions 1. Based on the balanced scorecard and the following descriptions of the predicted relationships between strategic objectives, draw the scorecards strategy map. a. Training employees effectively and reducing employee turnover can both be expected to improve returns processing and reduce shipping errors. b. Both improving returns processing and reducing shipping errors can be expected to delight the customer. c. Delighting the customer can be expected to increase market share. 2. Based on the balanced scorecard and the following descriptions of the predicted relationships between performance metrics, draw the scorecards measure map. a. Median training hours per employee and average employee tenure will both influence hours from returned to refunded and number of erroneous shipments. b. Both hours from returned to refunded and number of erroneous shipments will affect percentage of customers who shop again and online customer satisfaction rating. c. Both percentage of customers who shop again and online customer satisfaction rating will influence the companys market share. 3. Label each element of the balanced scorecard.arrow_forward(Appendix 11A) Which of the following is a perspective of the Balanced Scorecard? a. Learning and growth (infrastructure) b. Internal business process c. Customer d. Financial e. All of these.arrow_forward10 “Service response time” is an example of which balanced scorecard measure: Select one: a.Financial perspective b. Learning and growth perspective c.Internal business process perspective d. Customer perspectivearrow_forward
- Question 5.1 For each of the following balanced scorecard measures, A – Financial B – Customer C – Internal Business Process D – Learning and Growth Required Match with the appropriate perspective: Number of new customers Percentage of defective product units Number of patents Customer profitability Customer cost per unit Return on assets Average job-related training hours per employee Product cost per unit Employee turnover rate Percentage of processes with real-time feedbackarrow_forwardCreating Balanced Scorecard? that Support Different Strategies The Midwest Consulting Group (MCG) helps companies build balanced scorecards. As part of its marketing efforts. MCG conducts an annual balanced scorecard workshop for prospective clients. As MCG’s newest employee, your boss has asked you to participate in this year’s workshop by explaining to attendees how a company’s strategy determines the measures that are appropriate for its balanced scorecard. Your boss has provided you with the excerpts below from the annual reports of two current MCG clients. She has asked you to use these excerpts in your portion of the workshop. Excerpt from Applied Pharmaceuticals’ annual report: The keys to our business are consistent and timely new product introductions and manufacturing process integrity. The new product introduction side of the equation is a function of research and development (R&D) yield (e.g., the number of marketable drug compounds created relative to the total number…arrow_forwardThe balanced scorecard for a service company American Express Company is a major financial services company noted for its American Express® card. Some of the performance measures used by the company on its balanced scorecard are listed below. For each measure, identify whether the measure best fits the learning and growth, internal processes, customer, or financial performance perspective of the balanced scorecard. Performance Metric Performance Perspective Average card member spending Number of Internet features Cards in force Number of merchant signings Earnings growth Number of new card launches Hours of credit consultant training Return on equity Investment in information technology Revenue growth Number of card choicesarrow_forward
- The balanced scorecard for a service company American Express Company is a major financial services company noted for its American Express card. Some of the performance measures used by the company on its balanced scorecard are listed below. a. For each measure, identify whether the measure best fits the learning and growth, internal processes, customer, or financial performance perspective of the balanced scorecard. Performance Measure Average card member spending Number of Internet features Cards in force Performance Perspective Number of merchant signings Earnings growth Number of new card launches Hours of credit consultant training Return on equity Investment in information technology Revenue growth Number of card choices b. From the list of measures, select the option that would be considered lagging indicators relative to the rest of the measures listed. Lagging indicators Lagging indicators Lagging indicatorsarrow_forwardJalancu Juviai u The following are a number of measures associated with the Balanced Scorecard. Required: 1. Classify each performance measure as belonging to one of the following perspectives: financial, customer, internal business process, or learning and growth. a. Number of new customers b. Percentage of customer complaints resolved with one contact C. Unit product cost d. Cost per distribution channel e. Suggestions per employee f. Warranty repair costs Consumer satisfaction (from surveys) Cycle time for solving a customer problem Strategic job coverage ratio j. On-time delivery percentage k. Percentage of revenues from new products 2. Select an additional measure that would be appropriate for each of the four perspectives. Contribution margin by product ▾ Number of complaints Number of accidents per month Hours of continuing education provided per month g. h. i. Financial Customer Customer Internal business process Financial Financial Learning and growth Learning and growth…arrow_forwardOnly help with parts c, g, I and J Scorecard Measures, Strategy Translation At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered: 20x1 20x3 Theoretical annual capacity* 249,600 249,600 Actual production** 208,000 234,000 Market size (in units sold) 1,300,000 1,300,000 Production hours available (40 workers) 104,000 104,000 Very satisfied customers 83,200 117,000 Actual cost per unit $340 $272 Days of…arrow_forward
- 2-30 The balanced scorecard is related to the strategy map in a way similar to how a. the value chain is related to product differentiation. b. SWOT analysis is related to execution. c. the organization's key activities are related to the value chain. d. sustainability can be related to financial reporting. 2-31 A company taking a strategic and customer-centered point of view can best address sustainability, a concern for environmental and social as well as economic performance, through a. annual financial reporting to the Securities and Exchange Commission. b. the use of a sustainability perspective in the balanced scorecard. c. reporting violations of a company's human resources policy to the proper authorities. d. lobbying in Congress for stronger environmental regulations. Page 57 [LO 2-4 O] 2-32 The implementation of the balanced scorecard (BSC) can involve all of the following except a. the strong support of top management. b. a strategy of differentiation (as opposed to one of…arrow_forwardCategorize each of the following activities as to which management responsibility it fulfills: planning, directing, or controlling. Some activities may fulfill more than one responsibility. (Select an "X" in the input field if the management responsibility is fulfilled. If the management responsibility is not fulfilled, leave the input field empty.) Question content area bottom Part 1 Activity Management Responsibility Planning Directing Controlling a. Management decides to increase sales growth by 20% next year. b. Management analyzes the impact of a recent advertising campaign by comparing budgeted sales to actual sales. c. Management reviews hourly sales reports to determine the level of staffing needed to staff the customer service desk. d. Management uses information on product costs to determine sales prices. e. To lower production costs, management moves production to China.arrow_forwardRequirements 1. 2. Each of the items describes a key performance indicator. Determine which of the balanced scorecard perspectives is being addressed (financial, customer, internal business, or learning and growth). Read the company initiatives and determine which of the balanced scorecard perspectives is being addressed (financial, customer, internal business, or learning and growth). Requirement 1. Each of the following describes a key performance indicator. Determine which of the balanced scorecard perspectives is being addressed (financial, customer, internal business, or learning and growth). Performance Indicator a. Employee turnover Perspective b. Earnings per share c. Percentage of on-time deliveries d. Revenue growth rate Percentage of defects discovered during e. manufacturingarrow_forward
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning