Balance Score Card Approach for ECI Group, Woolworth and Wesfarmers

This report evaluates the effectiveness of the balance score card approach used by ECI Group, Woolworth and Wesfarmers. It includes a strategic map, performance measures, strengths and weaknesses of the BSC approach.

RUNNING HEAD: Balance score card approach
1
Name of the student
Topic Balance score card approach
University name

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Table of Contents
Introduction...........................................................................................................................................3
Draft perpetration of the strategic map adopted by these companies.....................................................4
Identification and discussion of performance measures of these three companies.................................5
Evaluation of the effectiveness of the balance score card of thse three companies................................8
Analysis of BSC Strengths and Weaknesses.......................................................................................10
References...........................................................................................................................................12

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Introduction
In this report, three companies have been selected which have been using the balance
score card approach in their busienss as performance measurement and improvement tool.
The ECI group, Woolworth and Wesfarmers plc have used balance score card approach. The
balance scorecard approach is the part of the strategic map of these three companies
Description of busienss
ECI group Woolworth supermarket
company
Wesfarmers plc
Private owned real state
organization. Company is
headquartered in United
states (ECI group, 2017)
It is supermarket retail chain
business. It has been
providing its retail services in
Australia and other countries
through its systematic value
chain (Woolworths, 2017)
Wesfarmers is also
supermarket retail chain
business in Australia having
headquartered in Perth.
(Wesfarmers, 2017)
Strategic map

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It is the map designed with a view to make changes in the existing business structure
on the basis of present and future goals. It is evaluated that strategic map focuses on the re-
engineering of existing business to achieve the set goals and objective.
Draft perpetration of the strategic map adopted by these companies
This diagram reflects the performance of company and area of improvement to
increase the overall effectiveness of these companies.

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Identification and discussion of performance measures of these three companies
Balance score card of ECI Group Company
Particular Target Measures Indicators Initiatives
Financial
perspective
Focuses on the
increase of the
turnover and
sales of
company.
Income
statement
Financial
statement and
brand image of
company
Hiring of experts
members and
invest in capital
assets.
Customers
perspective
Customized the
Real estate
construction for
better
satisfaction of
clients
Focuses on the
clients values
and social
factors
Customers
satisfaction and
feedback forms
Product mix
Customized
strategy
Internal process
system
Re-engineering
of existing
process
Increase the
construction
process and save
the cost of
process.
Determine the
target market
and focus on
generating cost
leadership
strategy.
Install new cyber
system to build
strong
communications.

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Learning and
growth
Hiring of
experts.
Training and
development
Implement new
training and
development
Entering into
strategic
alliance
Proper action
plan and new
systematic
approach
(Shen, Chen, & Wang, (2016).
Balance score card of Wesfarmers Group
Particular Target Measures Indicators Initiatives
Financial
perspective
Increasing the
market share and
turnover
Balance sheet
and income
statement
Increased
profitability and
turnover of
company.
Investing more
capital for
expanding the
busienss
Customers
perspective
Use of advance
cybe system in
its retail chain
Focus on the
customized
services to the
clients
Loyalty cards
and membership
approach.
Clients oriented
services.
Internal process
system
Use of advance
technologies to
strengthen the
communication
Hiring of more
experts
employees at
front desk.
Reducing the
cost by setting
effective
strategic
New system and
implement new
cyber chain for
the better

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alliance communication.
Learning and
growth
Engaging more
experts at front
desk
Arrangement of
training program
for employees to
learn new
Undertaken
strategic
integration
technique
Gantt chart and
standards plan
for employees
for their target
(Mahadevan, (2015).
Balance score card of Woolworths Supermarket
Particular Target Measures Indicators Initiatives
Financial
perspective
Potential market
share
Increasing
business
turnover by 20%
Profitability of
the business by
10% in one year.
Income
statement
Ratio analysis
Cash flow
statement
Increased
changed in the
profitability and
efficiency of the
business.
Investment
more capital in
the business.
Hiring of
experts
members.
Customers
perspective
Install new
payment
Gateway for
Customer
focused value
Loyalty card
approach and
membership
Clients oriented
services.

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clients
Customized
services for
clients
chain activities approach.
Internal process
system
Hiring more
experts
employees
Focus on the
communication
skills of
employees
Automation in
the business
process system.
Set new internal
process for the
online busienss.
Reduce the cost
of the busienss
Undertake
online
dashboard for
setting new
online chain for
the domestic and
international
clients
Installing cyber
computing
mechanism
Hiring IT
experts
Learning and
growth
Hiring IT experts New training
program for
employees
Strategic
alliance with the
IT company
Set new
standards and
rules for
employees.
(Lin, et al. 2014).

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Evaluation of the effectiveness of the balance score card of thse three companies.
ECI group
 The balance score card of the ECI Group Company covers all the potential
outcomes.
 It has focused on increasing its turnover and at the same time planned to re-
engineering of its existing value chain activities (Johnston, & Bate, (2013).
Woolworths Company
 The financial perspective of the BSC of Woolworths focuses on increasing the
profitability and market share.
 Company focused to hire more experts employees to increase the productivity
of the company.
Wesfarmers Company
 The financial perspective of the BSC of Woolworths focuses on expanding the
busienss by increasing the turnover.
 Installing new cyber system to establish automation in the value chain
activities of business (Chen, Kim, & Yamaguchi, (2014).
After evaluating the BSC of these three companies, it is inferred that BSC approach
will assist organization to achieve its new objectives and goals through the set functions and
strategic map.

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Analysis of BSC Strengths and Weaknesses
After analysing the BSC of these three companies, it is considered that company has
been used to evaluate the existing business performance of company and set the targets and
goals for their busienss. However, there are several strengthen and weakness of the BSC
implemented by these three companies (Boscia, & McAfee, 2014).
Company name Strength Weakness
ECI Group The BSC of the ECI group
focuses on the re-engineering
of its existing value chain.
It also set the new financial
targets for company.
The BSC will make easy for
company to set new rules and
regulation for its newly
adopted business chain.
The BSC will give only idea
and performing structure to
improve the existing
performance.
Identified issues and
problems will still need to be
managed by the proper
strategic planning of
company.
Woolworths Company The BSC of Company has set
financial target to increase its
overall profitability. This
BSC approach will set up the
clear plan which will assist in
implementing the proper
The main weakness of the
BSC approach of the
Woolworths is based on its
coverage of areas. It only
focuses on only four factors.
Woolworth company needs

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projected plan. to focuses on the marketing
strategies as well to increase
its overall outcomes of
busienss.
Wesfarmers Plc The BSC of Wesfarmers has
covered all the four main
segments such as financial,
internal, learning and growth
of the business. The
assessment of four parts of
the busienss will assist
management to formulate
effective strategies in market.
There is several weakness of
the BSC approach which
Wesfarmers would have such
as non-effective strategic
plan, consideration of only
four factors.
This BSC approach will only
assist Wesfarmers to increase
its overall turnover. In case
of expansion of business,
BSC approach will not be
help of organization
(Baporikar, (2017).
This above given strength and weakness of BSC approach reflects that company
should assess all these four factors efficiently to improve its existing busienss performance of
company. This BSC approach will help organization to prepare roadmap for its newly set
objectives and also assist in achieving the same in effective manner. Company should

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establish proper nexus between the organization’s goals and objectives with the stakeholder’s
development.

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Conclusion
With the increasing ramification of economic changes and complex busienss
structure, each and every company is indulged in using the balance score card approach in
their strategic management. It assists companies to run business effectively and implement
long term planning. Now in the end, it could be inferred that new BSC could be used by these
companies to mitigate the possible issues and improve the existing performance of
organization.

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References
Baporikar, N. (2017). Adopting Balance Score Card in Higher Education. Decision
Management: Concepts, Methodologies, Tools, and Applications: Concepts,
Methodologies, Tools, and Applications, 348.
Boscia, M. W., & McAfee, R. B. (2014). Using the balance scorecard approach: A group
exercise. Developments in Business Simulation and Experiential Learning, 35.
Chen, W. M., Kim, H., & Yamaguchi, H. (2014). Renewable energy in eastern Asia:
Renewable energy policy review and comparative SWOT analysis for promoting
renewable energy in Japan, South Korea, and Taiwan. Energy Policy, 74, 319-329.
ECI group, 2017, annual report, Retrieved on 4th April, 2018 from http://www.ecigroups.com/
Johnston, R.E. & Bate, J.D., (2013). The power of strategy innovation: a new way of linking
creativity and strategic planning to discover great business opportunities. AMACOM
Div American Mgmt Assn.
Lin, Y.H., Chen, C.C., Tsai, C.F. and Tseng, M.L., 2014. Balanced scorecard performance
evaluation in a closed-loop hierarchical model under uncertainty. Applied Soft
Computing, 24, pp.1022-1032.
Mahadevan, B., (2015). Operations management: Theory and practice. Pearson Education
India.
Shen, Y. C., Chen, P. S., & Wang, C. H. (2016). A study of enterprise resource planning
(ERP) system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry, 75, 127-139.

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Wesfarmers plc, 2017, annual report, Retrieved on 4th April, 2018 from
http://www.wesfarmers.com.au/investor-centre/company-performance-news/report
Woolworths, 2017, annual report, Retrieved on 4th April, 2018 from
https://www.woolworthsgroup.com.au/page/investors/our-performance/reports/
Reports

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