Strategic Performance: Balanced Scorecard & Benchmarking at AB Limited

This report assesses how AB Limited, a business equipment solution provider, can leverage the Balanced Scorecard and Benchmarking to enhance its strategic performance measurement and overall business operations. The Balanced Scorecard is explored through its four key perspectives: Financial, Customer and Stakeholders, Internal Processes, and Organizational Capacity, highlighting how AB Limited can benefit from a holistic evaluation approach beyond traditional financial reports. Benchmarking is presented as a method for AB Limited to compare its performance against industry leaders, identify areas for improvement, and implement changes for increased efficiency. The report concludes that both techniques can significantly aid AB Limited in strategic planning, communication, and execution of business processes, ultimately improving its competitive edge and customer satisfaction. Desklib provides access to similar solved assignments and resources for students.

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Answer A:
Introduction:
The concept of balance score card is the technique of strategic planning and the management
system that helps the companies to achieve in the objectives that they are trying to achieve. It
further helps them in aligning in the day to day work or the activities that are being
performed and aligning it with the various strategies and the aims of the company. This
technique also helps in prioritising in the products, services and the projects. It further helps
in the measurement and the monitoring of the progress about the strategic targets.
Balance Score card:
This is the technique that helps in connecting the dots all between the mission of the
company, its core values and the big picture of the strategies of the company. It helps the
management in fulfilling in the targets and also fulfil the initiatives. This technique views the
company from 4 different perspectives and also develops various different objectives that
measures, targets and actions in with relation to the below mentioned points:
 Financial: this also termed as Stewardship and is also known very common in the
public sector. This is the perspective which shows in the financial performance and
uses the different financial resources of the company. AB Limited could be benefited
from this perspective if it evaluates the performance of itself as a hole. For example,
the company measures its profitability on the basis of each equipment, the company
could evaluate its measurement and performance of the entire organisation instead of
only an equipment.
 Customer and stakeholders: this is the perspective which views the performance of
the company from the point of view of the customers or other such stakeholders.

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These are the customers or the stakeholders that the company is designed to serve. For
example, the company measures its profitability on the basis of each equipment, the
company must think from the view point of the customers and other such
stakeholders. This would help it in achieving better results and also would help in
improving the business operations.
 Internal process: this is the perspective which views the organisation from the lenses
of quality and efficiency and is related with the product or the services and other such
key processes of the business. The company as of now just evaluates its profitability
on the basis of each equipment but under this perspective, it could view its business
processes and also undertake few of the management accounting technique that could
help in improving the efficiency of the internal processes.
 Organisational capacity: this is the perspective which views the organisation from
the view point of human capital, infrastructure, technology, culture and other such
capacities which breaks through the performance. As of now, the company just
provides the data of each division separately, but from this view, the different results
from different viewpoints such as the human capital, infrastructure technology,
culture and other such capacities would be done which would help in improving the
efficiency of the business operations of the company. This in turn would help to be
fruitful for the company.
Conclusion:
This technique would be helpful since it would help the company in better strategic planning,
help in improving the communications of the various strategies and also execute in the
various business processes.

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Answer B:
Introduction:
Benchmarking is the process wherein the performance of the company is measured as against
the performance of another company. The comparison shall be done with the other company
which is best in the industry. Such a technique would help in the identifying of the various
internal opportunities for the purposes of improvement. By the way of studying in the
superior performance of the benchmarked company, the company would be able to improve
its business operations and also attain efficiency. One could implement in the changes that
would go on to yield some of the major improvements.
Uses:
AB Limited could select another company which deals in the same products, services in the
industry and then it could measure its performance. AB Limited could measure its business
operations and efficiency and results and compare it as against another company which is the
best in the same industry. This way AB Limited would be able to know and understand the
improvements that are required on its behalf to be made and then can act accordingly.
Conclusion:
AB Limited could use the financials of another company which is the best in the industry and
compare its performance based upon the balance score card of that competitor. This would
help AB Limited in understanding the exact efficiency and the business operations of the
company. AB Limited would know the improvements that are required and then the
management would be able to deicide the decisions that are to be taken. The company would
also be able to assess its business operations from the point of view of the customers and the
other stakeholders.

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