A Balanced Scorecard : An Organization 's Mission And Strategy

The Balanced Scorecard (BSC) is a powerful diagnostic tool which provides managers with a vision and strategy of the organization to completely value the performance of the organization(Roussas & Mccaskill 2015). BSC integrates financial measures with several crucial factors to create a long or short term plan(Huang 2009). This system emphasizes ‘leading and lagging indicators, internal performance perspectives, and quantitative and qualitative objectives’(Roussas & Mccaskill 2015). BSC works by four perspectives:

Balanced scorecard is a methodological tool that businesses use to get a measure by which someone can determine whether the set goals have been met or exceeded. It adds non-financial metrics to traditional financial metrics to give a well-rounded view of the performance in an organization. Balanced scorecards also help organizations to predict their success in meeting their overall strategic goals.

There are four perspectives when it comes to balanced scorecard. First one is learning and growth which means how the information and knowledge are processed and turned into competitive advantage against other companies. Second is about product manufacturing and making sure that all the products are made the same without any defaults. Third one is about customer satisfaction and making sure that customers are happy with product, service and price. Fourth one is about financial performance and making sure that company’s financial data is used properly.

Balanced scorecard is a set of measures, which give the complete view of any business performance. Kaplan and Norton (1995) explained balanced scorecard in following words:

A balanced scorecard is a performance measurement system, which takes into account the customers, internal business processes, learning and growth, as well as financial

2. Revenue - Expenses = Net Profit. Revenue exceeded expenses by $1,900 and cash is positive, indicating a “good” month.

The results of the calculations of changes show that total revenues incremented by 19.2 percent. Because total revenues increased, total cost of revenues also increased, but the cost of revenues went up by 25.3% which is more than the rise in total revenues. However, gross profit also went up by 15% which is a fair percentage given that the cost of revenues rose more than the revenue. Moreover, the total costs and expenses went up by 19.2% and total income from operations increased by just a 9.5%. On the other hand, interest and other income decreased by 15.3 percent, but when seen as a dollar amount it was only $96, which is not an elevated amount. Finally, there was a 12.2% decline in taxes and a 13.2% increase in net income from continuing

The balanced scorecard is a strategic planning and management system that was developed by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 1990's. Their goal was to provide organizations with a clear understanding of what to measure in order to improve performance and results (Balanced Scorecard Institute 2014). The balanced scorecard is a framework that allows an organization to measure performance and compare it to the organization’s strategic objectives and goals (Kinney and Raiborn 2013, 10).

Introduction- To be competitive, organizations must be both strategic and tactical to the nth degree, must be proactive rather than reactive, and must find a way to measure this easily and accurately. One way to accomplish this is through a Balanced Scorecard approach; a tool often viewed as one of the best tools that helps organizations translate strategy into performance. In general the BSA (Balanced Scorecard Approach) allows for a clear strategic and tactical directions for the organization, retains financial measurements in a summation along with their links to performance, and highlights an important and robust measurement system that links and integrates customers, stakeholders, processes, resources, and performance into single measurement strategy.

Revenue represents the primary source of money received by the company from its customers for goods sold or services rendered by the company. As per the presented income statement, Vibrant Foods PLC revenue shows growth. By comparing Year 1 and Year 2, we can see that Vibrant Foods PLC had a better year in Year 2 than in Year 1. Specifically, the company had net sales of 4,075,522 in Year 2 compared to 3,288,908 in Year 1. In total, net sales for Vibrant Foods PLC increased by 786,614 between Year 1 and Year 2. The revenue growth over two years is 23.92%. Therefore the Company’s revenue shoed upward movement.

The balanced scorecard is business management through four perspectives: financial, customer, internal processes, innovation and learning.

A beauty salon (The Business) wants to study the income fluctuations that occur for different months of the year. The study would provide insights into the matter. It may also induce possible investigations of the causes as well as actions to promote business. The real sales revenue over 60 months will be used for the regression analyses.

Revenue is usually the most significant item reported in a company’s financial statements. With bottom lines and cash flows being very important, not only is the company’s reported revenues significant in dollar buy also in weight and importance to the people or business that are investing in them. Revenue recognition is an accounting principal, through GAAP (Generally accepted accounting principles), that verifies the specific conditions under which revenue is recognized or accounted for. Revenue is recognized when a specific event has occurred. To investors, this is the most important way to see how a company’s performance is. This principal

On 12/31/X2, an adjusting journal entry is needed to record the amount of revenue that has been earned. The entry also results in the correct balance of the liability account as of 12/31/X2. Computation: $8,400 divided by 12 months equals $700 per month. $700 times 5 months (Aug – Dec) equals $3,500. $3,500 has now been earned. This complies with the revenue recognition principle –

The revenue per customer is tracked by determining the average amount spent per purchase by the customer. Since the firm under study is custom jewellery this data may be easily tracked. The profit and loss statement shows sales for successive twelve month periods. The revenue per customer is obtained by dividing the revenue by the average number of customers.