Balanced Scorecard Definition
The balanced scorecard is an essential component of any business plan, local or international. It outlines the steps that should be taken to keep a business running smoothly. A scorecard directs a project management group to consider the company from four perspectives: customers, finances, business operations, and growth. The balanced scorecard provides a comprehensive and unbiased evaluation of a company’s management. When businesses consider international expansion, a balanced scorecard can assist in targeting the four areas to maximize chances of success and competitiveness.
Measuring the leadership team’s effort to carry out the plan and achieve its objectives with key performance indicators is a beneficial exercise associated with a balanced scorecard. Success is measured by previously stated goals or standards. This information is analyzed to determine the company’s growth rate and where it stands with its competitors (Quezada et al., 2019). Executives can use balanced scorecards to demonstrate how their work contributes to the company’s growth, which can help them make a case for a pay raise or promotion. The best-balanced scorecard plan uses financial and non-financial data on a strategic issue critical to the company’s success.
The Learning and Growth Perspective
The learning and development plan prioritizes intangible resources such as organizational capital, human capital, and information capital. Employee development, in terms of talent and leadership, is an investment in the company’s future (Utomo et al., 2019). The perspective primarily improves human capital, equipping them with the necessary skills and resources for profitability. This perspective will be critical in assisting the furniture industry in maximizing its intangible assets, such as hard work, imagination, expertise, and inspiration, to increase production without sacrificing quality.
The Customer Perspective
The customer perspective is another important perspective, focusing on the business’s clients. From this perspective, customers are polled to determine their satisfaction with the company’s products and services (Utomo et al., 2019). The level of satisfaction of a company’s customers is a good predictor of its success because customer satisfaction is among the factors impacting a company’s bottom line. The balanced scorecard considers the company’s competitive position, including how customers rate the company compared to others in the industry. It prompts management to examine business from a different angle than usual. A company can increase customer satisfaction by improving products, providing a more enjoyable shopping experience, and lowering prices on staple items. The furniture industry will be able to attract and retain a diverse consumer base with this strategic focus. As a result, the company’s sales and earnings will increase, creating a competitive advantage in its global ventures.
The Financial Perspective
From a financial perspective, companies want to increase investment returns while minimizing losses that could threaten their existence for financial reasons. If the company can meet the needs of its investors, customers, and suppliers, it will have a better chance of meeting its goals (Utomo et al., 2019). Investors are ultimately responsible for a company’s success because they provide the funds required to function. A primary focus is ensuring consistent revenue generation for the business through tactics such as expanding existing revenue streams and pursuing new revenue opportunities (Quezada et al., 2019). Some actions that could help achieve this goal include expanding the company’s product offerings, improving the value proposition, and cutting costs elsewhere. This point of view could help the furniture industry better manage its financial input and output, resulting in increased profitability. The funds generated by on-time salary payments could fund the company’s international expansion.
The Business Process Perspective
Finally, the business process perspective seeks to establish its internal operational goals and the primary operations required to meet customer needs and preferences. The project management team will then be able to develop realistic company goals and strategies for reaching them (Quezada et al., 2019). As a bonus, this perspective will be useful in developing operational guidelines that will guide the organization in its pursuit of meeting the demands of its customers. The furniture industry can find what the target market prefers and focus operations and processes in that direction for success.
Overview of Ethics
International business ethics aims to help companies gain respect worldwide for acting morally and ethically. When conducting international business, it is critical to implement an employee code of ethics and a corporate governance policy. Business ethics attract investors and customers, especially due to increased sensitivity to bribery, discrimination, social responsibility, climate change, and fiduciary duty (Becker, 2018). The furniture company has engaged in local corporate strategies such as building houses for the needy and collaborating with communities to create green gardens. More of these strategies could be implemented globally in areas of operation. It shows that the company values benefiting the community and meeting its business goals.
Global Expansion Strategy
The company’s global expansion strategy can include more initiatives such as value disciplines and stakeholder theory. Edwards et al. (2019) agree on this point, arguing that furniture manufacturers, according to proponents of the “value disciplines” approach, have the best chance of success by entering already established markets. For example, the American furniture industry has a history of excellent leadership, strong customer relationships, and product innovation that has propelled it to market dominance. As a result, the company can bring its global approach to the Canadian market and take advantage of the already established foundation. The stakeholder theory method, on the other hand, concentrates on addressing the demands of the company’s many stakeholders, such as consumers, workers, neighbors, and investors. According to Edwards et al. (2019), for an organization to succeed, its stakeholders must address its requirements. Employees are expected to work together to ensure the satisfaction of all stakeholders to achieve the company’s goals. Workers will be paid competitively, given training and opportunities for advancement, and encouraged to use their initiative as they design and build furniture manufacturing equipment. As a result of the resulting product agency, customers’ wants and needs will be given more weight, and chances of success will increase.
The Purpose of Multi-strategy Entry and Conclusion
To achieve global development, distinct expansion strategies must be combined, as what works well today may not be the best option tomorrow. Additionally, many uncertainties in the global market require backup plans. That is why businesses must have multiple entry points so that even if one fails, one can still succeed with the others. Because of this effort, the company will not go bankrupt if one approach fails due to market changes. Furthermore, the company can maximize the effectiveness of each strategy with time. The balanced scorecard will play a significant role, offering a platform for improvement in the four perspectives that impact business the most. By addressing each perspective to the extreme, the company can counter risks and take advantage of opportunities for success in the global market.
References
Becker, C. U. (2018). Business ethics: methods and application. Routledge. Web.
Edwards, A., Venugopal, S., Navedo, D., & Ramani, S. (2019). Addressing the needs of diverse stakeholders: Twelve tips for leaders of health professions education programs. Medical Teacher, 41(1), 17-23. Web.
Quezada, L. E., Reinao, E. A., Palominos, P. I., & Oddershede, A. M. (2019). Measuring performance using SWOT analysis and balanced scorecard. Procedia Manufacturing, 39, 786-793. Web.
Utomo, D., Machmuddah, Z., & Setiawanta, Y. (2019). Balanced scorecard: Learning and growth perspective. Journal Inovasi Ekonomi, 4(2), 55-66. Web.