Advance Management Accounting: Balanced Scorecard and Strategy

This report analyzes the development of a balanced scorecard for Youngblood International, a company with brewing, newspaper, and cable television divisions. The assignment addresses the implementation of non-financial measures, objectives across four dimensions (financial, customer, internal business processes, and learning and growth), and strategy maps for each division. It also identifies lag and lead indicators for performance measurement, ensuring a comprehensive approach to evaluating and improving divisional performance. The report provides detailed analyses for each of Youngblood's three divisions, offering insights into their individual strategies and performance metrics, supported by relevant references.

Running Head: ADVANCE MANAGEMENT ACCOUNTING
ADVANCE MANAGEMENT ACCOUNTING
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to Question 4.................................................................................................................2
Objectives for four dimensions..............................................................................................2
Strategy Map..........................................................................................................................5
Lag and Lead Indicators.........................................................................................................8
Reference..................................................................................................................................10

2ADVANCE MANAGEMENT ACCOUNTING
Answer to Question 4
New management accountant, Janice Cookson is appointed in head office of
Youngblood international. She has the intention for expanding the divisional targets in order
to include the ranges of the measures that is non-financial. Therefore, she is very much
interested for the balanced scorecard development for each of the division (Akkermans &
Van Oorschot, 2018).
a)
Objectives for four dimensions
Objectives Performance Measures
Lag Indicators Lead Indicators
Financial
 Increase in the total
return of the
department.
 Increase in Cash Flow
 Profit on the part of
per unit of the beer.
 Increase in the
operational cost.
Customer
 Improving the market
share
 Increase in the total
number of customers
(Hansen &
Schaltegger, 2016).
 Product’s market
share
 Interest of the
existing customers
towards products.
 Decrease in the
overall preferences of
customers towards
product.
 Availability of
product’s less
variety .
Internal Business Processes  Technology is old
still the department is
 .Uses of the outdated

3ADVANCE MANAGEMENT ACCOUNTING
maintaining good
ROI.
technology.
 Increase in the
competition demands
updated to the new
technology (Hansen
& Schaltegger, 2016).
Learning and Growth  Skill development
increases the
satisfaction of the
employees
 The number of the
employees who are
dissatisfied with the
training of the
department
Figure 1: Brewing Department
Objectives Performance Measures
Lag Indicators Lead Indicators
Financial
 Improving ROC
 Increase in the value
to the shareholders
 Economies of scale
 Per unit profit of the
newspaper.
 Reduction in the sales
revenue.
Customer
 Improving the Market
shares.
 Retaining the existing
customers.
 Customer strength in
total numbers.
 Lesser cost per unit of
the newspaper.
 In respect of the
change in the
preferences, total
number of the
customers.

4ADVANCE MANAGEMENT ACCOUNTING
 Less variety of the
product (Hansen &
Schaltegger, 2016).
Internal Business Processes
 Improvement in the
process.
 Adapting to the latest
technology.
 Cost of operations on
the basis of per
month.
 Newspaper coverage.
 Old technology.
 Delay in process and
newspaper
distribution.
Learning and Growth
 Development of the
new skills.
 Employees interested
in skills learning.
 Employees’
intentions for skill
learning.
Figure 2: Newspaper Department
Objectives Performance Measures
Lag Indicators Lead Indicators
Financial
 Improve in the total
return
 Increase in
shareholders’ value.
 Total profit per unit
of the product
 Increase in the
shareholders value.
 Increase of the cost of
operations.
 Increase of cost of
maintenance.
Customer
 Improvement for the
market shares.
 Customers Retentions
with maintaining the
interests.
 Major reliance of the
wide population on
one of the oldest
media.
 Benefit of wide
coverage.
 Increase in the
competitors has
switched the
customers for other
rivals.
 Dissatisfaction among

5ADVANCE MANAGEMENT ACCOUNTING
number of customers
(Bhattacharya et al.
2014).
Internal Business Processes
 Reduction in the total
costs of the latest
technology
 Development of the
Infrastructure.
 Economies of scale
due to wide coverage.
 Development is less
 Adaptation of
technology is less
 Costly.
Learning and Growth
 Training skills of
media.
 Total number of
employees who are
participating in the
training programs.
 Increase in the
complaints
Figure 3: Cable Television Department
b)
Strategy Map
Brewing Department:
Perspectives Measures
Financial
Customer
Internal Business Process
Increase in the Flow of CashIncrease in ROC
Increase in number of
Customers
Improving of the share
of Market
Development of New ProductTechnological
Development

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Learning and Growth
Newspaper Department:
Perspective Measures
Financial
Customer
Internal Business Process
Learning and Growth
Development and Training of the
Employees
Increase in the Value of
Shareholders
Improvement of ROC
Retaining of the
Customers
Improvement in the
Market Share
New Technological
Adaptation
Improvement in the
Process
Skills Development

7ADVANCE MANAGEMENT ACCOUNTING
Cable Television Development:
Perspective Measures
Financial
Customers
Internal Business Process
Learning and Growth
Increase of the value of
shareholders
Increase in Profit
Maintaining Customers
Interest
Increase of Market
Share
Infrastructure
Improvement
Reduction of cost by
Technological Adaptation
Training of Media Skills

8ADVANCE MANAGEMENT ACCOUNTING
c)
Lag and Lead Indicators
Financial Perspective
The Lag Indicators are as follows:
 Investors and shareholders’ value.
 Return on capital employed.
 Increase in the profit margin.
 ‘Increase in the product’s market price (Wu & Liao, 2014).
The Lag Indicators are as follows:
 Reduction of the cost of products.
 Division’s sales mix.
Customers
The lag Indicators are as follows:
 Total satisfaction of the customers.
 Gaining new customers.
 Retaining the existing customers.
The lead Indicators are as follows:
 Improvement in the product’s quality.
 Providing product’s variations in terms of variety.
 Providing the products as per taste and trends to the customers (Douthitt & Mondore,
2014).
Internal Business Processes

9ADVANCE MANAGEMENT ACCOUNTING
The Lag Indicators are as follows:
 New Technology adaptation.
 Latest Equipments acquisitions.
 Development of new products.
The lead indicators are as follows:
 Time taken for product’s development.
 Increase production.
 Cost reduction of production.
Learning and Growth
The Lag Indicators are as follows:
 Increase of employee satisfaction
 Survey for knowing and accessing employee satisfaction
 Employee training enhancement
 Ensuring participation from every employee in particular division.
The lead indicators are as follows:
 Accessing time taken for program development for the training and development of
the employee.
 Ensuring facility provided to employee is better and if there is any lack then it should
be improved (Maas & Reniers, 2014).

10ADVANCE MANAGEMENT ACCOUNTING
Reference
Akkermans, H. A., & Van Oorschot, K. E. (2018). Relevance assumed: a case study of
balanced scorecard development using system dynamics. In System Dynamics (pp. 107-132).
Palgrave Macmillan, London.
Hansen, E. G., & Schaltegger, S. (2016). The sustainability balanced scorecard: A systematic
review of architectures. Journal of Business Ethics, 133(2), 193-221.
Bhattacharya, A., Mohapatra, P., Kumar, V., Dey, P. K., Brady, M., Tiwari, M. K., &
Nudurupati, S. S. (2014). Green supply chain performance measurement using fuzzy ANP-
based balanced scorecard: a collaborative decision-making approach. Production Planning &
Control, 25(8), 698-714.
Wu, W. Y., & Liao, Y. K. (2014). A balanced scorecard envelopment approach to assess
airlines' performance. Industrial Management & Data Systems, 114(1), 123-143.
Douthitt, S., & Mondore, S. (2014). Creating a business-focused HR function with analytics
and integrated talent management. People and Strategy, 36(4), 16.
Maas, S., & Reniers, G. (2014). Development of a CSR model for practice: connecting five
inherent areas of sustainable business. Journal of Cleaner Production, 64, 104-114.