Enterprise Performance Management

This document provides study material on Enterprise Performance Management, covering topics such as introduction, impact of Porter's five forces, impact of externalities, and balance score card.

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ENTERPRISE PERFORMANCE MANAGEMENT
6/18/2019
Student name

ENTERPRISE PERFORMANCE MANAGEMENT 1
Contents
Introduction................................................................................................................................2
Impact of Porters five force........................................................................................................3
Impact of externalities................................................................................................................4
Balance score card......................................................................................................................4
Conclusion..................................................................................................................................7
References..................................................................................................................................8

ENTERPRISE PERFORMANCE MANAGEMENT 2
Introduction
Baby car seats are one of the modern business opportunities as parents are looking for
convenient options and consider the comfort level of their children. For this, the Sukhpreet
Kaur’s company offered the car seats for baby to ensure kids safety in travel and their
comfort level. It is a private company, whose vision is to provide children safety around the
globe with maximum comfort while traveling (Amabile & Rigolizzo, 2015). The Sukhpreet
Kaur’s company mission is to prove the best quality car seats for the child to ensure the
children safety and suitable design and technology. The key value of the company includes
happy customer, understanding children needs and comfort. Moreover, the innovative culture
is being considered by the company to provide innovative products to the customer with
attractive looking products, which will complement the luxury of the car as well. The
Sukhpreet Kaur’s company is in the growth stage of the life cycle, the company may have the
risk of stagnant market growth (Ahlin, 2014).

ENTERPRISE PERFORMANCE MANAGEMENT 3
Impact of Porters five force
Porters five force model comprise of five key forces that can impact the company’s business.
The five forces include
1. The threat of new entrants
The new companies entry are a major threat to the Sukhpreet Kaur’s company, the
reason being entry barriers are minimum as the investment in the baby car seats are
not too high that one cannot enter or compete. The threat is high as the new company
may come with better technology and an innovative idea to attract customers.
Moreover, the shifting costs of the customers are very low, that increases this threat to
the company (Dobbs, 2014).
2. The threat of substitute goods
The substitute goods for baby car seat could be travel vest to make the kids travel
safely without a car seat. This is the wearable belt, that could be preferable by parents
due to travel friendly and they do not have to carry the seat every time. However,
there are various unique advantages to baby car seats, which make the threat of
substitute to medium level (travelswithbaby, 2019).
3. Bargaining power of buyers
The bargaining power is not highly in the hands of customers in this industry as the
supply is less if Sukhpreet Kaur’s company is providing the best quality product with
innovative design and gaining competitive advantage. There is not a very large
competition as compared to other industries, which could make the bargaining power
lower in the hands of the customers. However, the customer shifting price is very low,
which could be a threat to the company (Ogutu & Mathooko, 2015).
4. Bargaining power of suppliers
The threat of bargaining power of supplier is medium, the reason being the large
supplier could be in bargaining position and impact the business by increasing the
price of raw materials like seating covers, but the company can make its supply chain
agile by using alternative options in an innovative way to decrease the bargaining
power of the suppliers. Moreover, the Sukhpreet Kaur’s company could have a
relation with various suppliers to reduce this threat to a large extent (Camison &
Fores, 2016).
5. Industry rivalry

ENTERPRISE PERFORMANCE MANAGEMENT 4
The competition is high but not too much in the market if the company is able to
manage the innovation and updated technology, the competitive advantage could help
to decrease the threat of competition. However, there are several companies in this
industry that are offering products and service online that can be a threat to the
Sukhpreet Kaur’s company and there are various local manufacturers that can also be
a great threat for the company. For instance, some of the top baby car seat company
that can increase rivalry in the industry are Evenflo Chase, Diono Radian, Donna
infant car seats (Amabile & Rigolizzo, 2015).
Impact of externalities
Positive externalities are the key advantages that the Sukhpreet Kaur’s company affect the
third party, in the form of economic result. One of the major positive effects of baby car seat
company is to protect the child, in the situation of any uncertainty while driving, therefore the
third party in the beneficiary positing includes the child, its parents and associated member in
the form of life and financial aspect. For instance, the parents do not need to worry about
their child while driving which may reduce the risk of accidents due to inattentiveness
(Dewald & Osiyevskyy, 2015). This will eventually help to protect the cost and property that
may affect negatively to the economy. Therefore, it can be said that the child automotive
death rates have been decreased through the products offered by the company; which
eventually have a positive impact of economic constraints of the nation (ncbi.nlm.nih.gov,
2019).
The negative externalities include the additional cost to customers and the nation economy.
For instance, car companies could have inbuilt car seats that Sukhpreet Kaur’s company is
offering. The company products are the additional cost to the family, which may become a
necessity due to a change in trend (Doppell, 2017).
Balance score card
Booktopia Balance scorecard
Objectives Measures Targets Initiatives
Financial  Cut cost
 Upsurge profitability
and growth
 Profit
boundaries
 Expenses
 15%
increas
e
 10 %
 Innovation
 Cost
management

ENTERPRISE PERFORMANCE MANAGEMENT 5
 Income decrea
se
 15%
increas
e
activities
 Business
expansion
Customer  Increase Customer
database
 Customer retention
 Increased customer
loyalty
 New customer
 Income from
every purchaser
 Client
satisfaction
degree
15% increase  Innovative
and best
quality
product and
service
 Service
improvement
strategy
 Customer
loyalty
programs
Business
process
 Online service
 Agile Supply chain
and manufacture
 Technology and
digitalization
 Supplier
relationships
and alternative
material use
15% increase  E-commerce
development
, online
placing
strategy
 Supply chain
management
Learning
and
growth
 Employees training
program
 Expansion growth of
the business
 Productivity
 New market
opportunity
20%,
and
15%
 Training
program
 Market
development
strategy
The balance scorecard is the one of the framework that is developed to understand the key
objectives for Sukhpreet Kaur’s company that they need to accomplish related to financial
objectives, which in the baby car seat company is to diminish the cost of manufacturing and
up surging the profitability and growth. The key objectives related to the customer include
increased in a number of new customers, increased customer retention and an increase in
customer loyalty by 15%. Another major category to create objectives for Sukhpreet Kaur’s
company includes providing online service and creating an agile supply chain and production

ENTERPRISE PERFORMANCE MANAGEMENT 6
by 15% (Gencer, 2017). Lastly the learning and growth objective of the company include
implementation of the employee training program to increase the organizational productivity,
and expansion and growth business by 20% and 15 % respectively (Zhang & Tan, 2017).

ENTERPRISE PERFORMANCE MANAGEMENT 7
Conclusion
From the discussion, the key highlighting points included Baby car seats are one of the
modern business opportunities as parents are looking for convenient options and consider the
comfort level of their children. The Sukhpreet Kaur’s company offered the car seats for baby
to ensure kids safety in travel and their comfort level. The new company’s entry is a major
threat to the company; there are various unique advantages to baby car seats, which make the
threat of substitute to medium level. The bargaining power is not highly in the hands of
customers in this industry. Some of the top baby car seat company that can increase rivalry in
the industry are Evenflo Chase, Diono Radian, Donna infant car seats.

ENTERPRISE PERFORMANCE MANAGEMENT 8
References
Ahlin, B. (2014). Entrepreneurs’ creativity and firm innovation: the moderating role of
entrepreneurial self-efficacy. Small Business Economics, 43(1), 101.
Amabile, T., & Rigolizzo, M. (2015). Entrepreneurial creativity: The role of learning
processes and work environment supports. The Oxford handbook of creativity,
innovation, and entrepreneurship, 61.
Camison, C., & Fores, B. (2016). Does incremental and radical innovation performance
depend on different types of knowledge accumulation capabilities and organizational
size? Journal of Business Research, 831.
Dewald, J., & Osiyevskyy, O. (2015). Explorative versus exploitative business model change:
the cognitive antecedents of firm‐level responses to disruptive innovation. Strategic
Entrepreneurship Journal, 58.
Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 32.
Doppell, B. (2017). Leading change toward sustainability: A change-management guide for
business, government and civil society. London: Routledge.
Gencer, Y. (2017). Supply chain management in retailing business. In Ethics and
sustainability in global supply chain management, 197-210.
ncbi.nlm.nih.gov. (2019). pmc. Retrieved from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3496348/
Ogutu, M., & Mathooko, F. (2015). Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities

ENTERPRISE PERFORMANCE MANAGEMENT 9
in Kenya. International Journal of Educational Management, 29(3), 334.
travelswithbaby. (2019). best-car-seat-alternatives-for-travel. Retrieved from
https://travelswithbaby.com/blog/best-car-seat-alternatives-for-travel/
Zhang, Y., & Tan, Y. (2017). Service performance evaluation using data envelopment
analysis and balance scorecard approach: an application to automotive industry.
Annals of Operations Research, 248(1-2), 449-470.