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Accounting for Decision Making Assignment (Doc)

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Added on  2020-04-15

Accounting for Decision Making Assignment (Doc)

   Added on 2020-04-15

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Accounting for Decision Making
Accounting for Decision Making Assignment (Doc)_1
IntroductionThe present paper is developed for demonstrating the importance of using balancedscorecard for an organization to evaluate its strategic performance. In this context, the casestudy of Tesco illustrating the use of balanced scorecard for developing and measuring itsstrategic objectives is analyzed and evaluated in the present paper.Reasons for the Tesco Developing its Balanced ScorecardTesco is recognized as a supermarket giant in the UK market having about2,026 retail stores across the country and generating a profit of about £700 million annually.The company has achieved brand recognition in the retail market of the UK by achieving thetrust of its customers, suppliers and shareholders. Therefore, it is very important for thecompany to manage all aspects of its business effectively for ensuring its consistentperformance across the market. This is required as the company operates in a highlycompetitive retail sector of the UK and therefore has to continually monitor its strategic goalsby analyzing the financial and non-financial information through the use of balancescorecard. The balanced scorecard supports the strategic decision-making process of anorganization though evaluating its performance on all the major perspectives such ascustomer, internal, learning and financial perspectives. As such, the company hasincorporated the use of balanced scorecard ‘Steering Wheel’ for examining its overallperformance on the basis of four major elements that are customers, operations, staff andfinances. The key performance indicators (KPIs) in every segment of the Steering Wheel ofthe company depict its performance (Ryle, 2013). Organizational objectives, measures, and targets of the Balanced ScorecardTesco has developed and implemented the use of balanced scorecard ‘SteeringWheel’ in order to achieve sustainable growth and development in each of its businessperspective. The managers of the company continually analyze the performance of thecompany on the perspectives of the customers, operations, staff and finances through the useof traffic light system where the green light indicates that targets have been achieved whereasred light depicts a problem. The company has developed a set of targets to be achieved ineach of its segment of Steering Wheel and the progress achieved is measured throughanalyzing the Key performance Indicators. The customer perspective segment of the balancedscorecard of the company has the following targets that are, highest quality, lowest price,
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