Frieda’s Fizz Balanced Scorecard Analysis

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Frieda’s Fizz Balanced Scorecard Analysis
Brenau University

A balanced scorecard is a tool to provide management a way to bridge the gap between the organization’s strategy and vision and the operational processes used to do business. It enables the company to look at more than just the financial targets, but to include nonfinancial measures such as customer service, internal business processes and more. These intangible measures provide better focus on the organization’s long-term strategies. This paper is an attempt to analyze Frieda Fizz decision to utilize a balanced scorecard as they expand into new geographic areas. The strengths and weaknesses of each perspective are discussed along with the pros and cons of using
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These financial measures may be appropriate for short-term goals, but not provide enough focus on long-term outcomes.
The customer perspectives strengths are that these measures focus on customer satisfaction. These measures address the link between customer complaints and profitability. It is expected that as complaints are reduced, sales will increase. The weaknesses of the customer perspectives are that the focus on customer complaints does not address the silent customers; that just go to a competitor when they become dissatisfied with Frieda Fizz products. These measures are appropriate for managers’ focus on product quality and the related sales growth. Managers may want to expand the customer perspective measurements to include measures on customer service as they expand into more geographic areas.
The internal business perspectives strengths are that they address capacity and production cost efficiencies. These measures are weak in that they do not necessarily ensure quality of production or effective use of the production line. Supervisors may be tempted to overproduce product. The managers may want to focus on where there is a bottleneck in production or how long stock sits in the warehouse. These measures are appropriate as it addresses controlling waste and ensure the plant is optimally utilized.
The learning and growth perspective strengths address controlling costs through reduction of injuries and improving job performance through training.

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