Strategic Management Accounting: An Analysis of Coles' Balanced Scorecard Approach

Running head: STRATEGIC MANAGEMENT ACCOUNTING
Strategic Management Accounting
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1STRATEGIC MANAGEMENT ACCOUNTING
Executive Summary:
The report aims at providing an insight into strategic management accounting in perspective of
the adoption and implementation of the Balance Scorecard Approach by Coles, a retail chain in
Australia. The report commences with a description of the adoption and implementation of the
Balance Scorecard approach of Coles. The report also described the long term goals of the firm
along with a mention of its clients and stakeholders. The report also puts forward the suitable
perspectives for the approach along with the mention of the objectives for each of the
perspectives. There is also a strategy map describing the relationship between the objectives
along with the mention of the lag and lead indicators. The report also provides an analysis of the
issues related to the balanced scorecard approach.

2STRATEGIC MANAGEMENT ACCOUNTING
Table of Contents
Introduction:....................................................................................................................................3
1. Company that Adopted and Implemented Balanced Scorecard.................................................3
2. Long term Goals of the Company, Group of Stakeholders and Clients.....................................4
3. Suitable Perspectives for a Balanced Scorecard and Objectives for Each Perspective..............6
4. Strategy Map Showing Relationship between Different Objectives..........................................8
5. The Lag and the Lead Indicators.................................................................................................8
6. Analysis of the Issues Concerning the Issues of Balanced Scorecard........................................9
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

3STRATEGIC MANAGEMENT ACCOUNTING
Introduction:
The aim of the report is to provide an analysis of strategic management accounting in
perspective of the balanced scorecard approach adopted and implemented by a firm. The firm
chosen here is Coles, an Australian retail firm. It was found in the year 1914 by George Coles in
Collingwood Melbourne (colesgroup.com.au 2019). The retail chain operated in close to 807
supermarkets throughout the Australia including various re-branded Bi-Lo supermarket. The
report also focused on the long term goals of the company along with a mention of the
stakeholders and the clients. The report also discusses about the suitable perspectives of the
approach along with a mention of the specific objectives. The report also puts forward a strategic
map, lead and lags indicators along with analysis of the issues concerning implementation of the
approach.
1. Company that Adopted and Implemented Balanced Scorecard
Coles is an Australian supermarket, customer service and retail chain with headquarters
in Melbourne that adopted and implemented the Balanced Scorecard Approach It has been found
that adoption of balanced scorecard approach of Coles for transforming it into an agile
organization enabled in balancing the top down direction with the bottom up flexibility and
diversity.
However the balanced scorecard performance measurement system of Coles comprised
of sixteen measures split with the four groups (Sainaghi, Phillips and Corti 2013). These groups
include: