Instructions
1. Based on the balanced scorecard and the following descriptions of the predicted relationships between strategic objectives, draw the scorecard’s 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 scorecard’s 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 company’s market share.
3. Label each element of the balanced scorecard.
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Chapter 28 Solutions
FINANCIAL & MANAGERIAL ACCW/CENGAGENOWV
- Consider the following quality improvement strategy as expressed by a series of if-then statements: If real-time feedback information capabilities improve, then post-sales service time will improve. If post-sales service time improves, then post-sales service quality will increase. If post-sales service quality increases, then customer satisfaction will increase. If customer satisfaction increases, then market share will increase. If market share increases, then sales will increase. If sales increase, then profits will increase. Required: 1. Prepare a strategy map that shows the cause-and-effect relationships of the quality improvement strategy (see Exhibit 13.10 for an illustrative example). 2. Explain how the quality improvement strategy can be tested.arrow_forwardWhich of the following objectives would likely be associated with the learning and growth perspective of the balanced scorecard? a. Increasing post-sales service efficiency b. Increasing information system capabilities c. Decreasing product development cycle time d. Improving product image and reputationarrow_forwardWhich of the following objectives would likely be associated with the customer perspective of the balanced scorecard? a. Increasing post-sales service efficiency b. Decreasing product development cycle time c. Reducing distribution channel cost d. Increasing delivery reliabilityarrow_forward
- The following if-then statements were taken from a Balanced Scorecard: a. If employee capabilities increase, then process time decreases. b. If process time decreases, then customer retention will increase. c. If customer retention increases, then market share will increase. d. If market share increases, then revenues will increase. Required: 1. Identify the lead and lag variables, and explain your reasoning. 2. Discuss the implications of Requirement 1 for the financial and learning and growth perspectives. 3. Using the first if-then statement, explain the concept of double-loop feedback.arrow_forwardClassify each of the following performance measures into the balanced scorecard perspective to which it relates: financial perspective, internal operations perspective, learning and growth perspective, or customer perspective. A. Number of improved products B. Time from packaging to delivery or display C. Production costs D. Number of customer suggestions E. Sales mix revenues F. Number of repeat customersarrow_forwardBluetiful Inc. has the following strategic objectives on its balanced scorecard but is unsure how to measure them: Increase profits Obtain new customers Improve production efficiency Recruit top candidates State which performance perspective each strategic objective should fall under, and suggest at least two possible performance metrics for each strategic objective listed.arrow_forward
- Classify the performance measures below into the most likely balanced scorecard perspective itrelates to. Label your answers using C (customer), P (internal process), I (innovation and growth), or F(financial). Customer wait timearrow_forwardIdentify which perspective(s) of the balanced scorecard each of the following critical success factors relates to by placing an X in the appropriate cell. Each success factor could relate to more than one category. Note: Select 'No' in the inappropriate cells. Critical Success Factor Economic value added Product quality Employee Empowerment Repeat customers Product marketing Product Innovation Productivity Financial Balanced Scorecard Perspective Internal Processes Customer Organizational Capacityarrow_forwardExplaining why companies use performance evaluation systems Well-designed performance evaluation systems accomplish many goals. Consider the following actions, and state which goal is being achieved by the action: a. Comparing targets to actual results b. Providing subunit managers with performance targets c. Comparing actual results with industry standards d. Providing bonuses to subunit managers who achieve performance targets e. Aligning subunit performance targets with company strategy f. Comparing actual results of competitors g. Taking corrective actions h. Using the adage “you get what you measure” when designing the performance evaluation systemarrow_forward
- Which of the following is a balanced scorecard performance measure. Employee learning and growth Customer satisfaction Business process improvements All of these are performance measuresarrow_forwardA. What are the four performance perspectives used in the balanced scorecard? B. For each performance perspective above, list at least two strategic objectives. 2. A balanced scorecard has the following performance metrics: Sales increase by region Sales order pipeline Market share Salesperson training hours Number of shipping errors Number of new customers New product development expenditures Relative to the metric “increase sales”, which of these performance metrics are leading and which are lagging indicators?arrow_forwardThe Balanced Scorecard: Stakeholder Values. In the balanced scorecard approach, stakeholder groups with different perspectives value different performance goals. Sometimes, however, they may be interested in the same goal. Indicate which stakeholder groups—financial (F), learning and growth (L), internal business processes (P), and customers (C)— value the following performance goals: High wage Safe products. Low-priced products Improved return on investment Job security Cost-effective production processes XYZ Co. wants to know if its profitability performance has increased from 2009 to 2010. The company had net income of $48,000 in 2009 and $50,000 in 2010. Total assets were $480,000 at the end of 2009, and $560,000 at the end of 2010. Calculate return on assets(ROA) for 2009 and 2010and Comment on the results.arrow_forward
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