Customer Satisfaction Analysis for LFR

This assignment focuses on analyzing customer satisfaction for the company LFR. It emphasizes understanding how factors like customer service, product quality, and internal procedures influence customer contentment. The analysis utilizes a balanced scorecard framework to evaluate these dimensions and provide insights into enhancing customer satisfaction and loyalty.

Running head: MANAGEMENT ACCOUNTING
Management Accounting
University Name
Student Name
Authors’ Note

2MANAGEMENT ACCOUNTING
Case Study 2s
Answer to task 1 (a)
Development of a balanced scorecard for LFR at the organizational level
Objective Measures Target
s
Initiatives
FY 1
Financial
perspective
Optimization of firm’s returns
Attainment of Growth in the profitability
Base of Leverage of specific asset
Control of functional cost
 ROCE
 Growth
Attained
in
Revenue
 Rate of
utilization
of firm’s
assets
 Functional
Cost
10%
8%
75%
$180
Customer Enhancing loyalty of the clientele  Rating
satisfactio
n of
clientele
75% Loyalty
program for
customers

3MANAGEMENT ACCOUNTING
Internal
Processes
Growth in the business
- Capitalization of diverse
deregulation prospects
- Maximization of diverse trading
prospects
- Designing innovative products
as well as services
- Leverage company’s established
research and development
(R&D) system
Constant Support of the public
- Positive management of diverse
associations
- Delivering certainty regarding
dependable services
- Communication with the
clientele
Customer Service Excellence
- Optimization of utilization of
asset
- Maximization of return obtained
from allotment of assets
- Administration of Firm’s Cost
- Enterprise wide risk
 Revenue
acquired
from
company’s
products
as well as
services
 Percentage
of
Revenue
obtained
from
services
 NPV of
diverse
pipeline
products
as well as
services
 Percentage
of delivery
 Percentage
capacity
utilization
 Productivi
9%
8%
$300
M
90%
85%
3%
4%
94/1
00
90%
Enhancement
of overall
firm’s
infrastructure
Coalition
Programs
Defensive
maintenance
Service
Dispatch
computerizatio
n
Marketing
functions

4MANAGEMENT ACCOUNTING
administration ty
enhancem
ent of
employee
 Percentage
of
decrease
in firm’s
cost
Learning as
well as
Growth
Market Driven capability
Contentment of members of the staff
Leadership of global standard
 Tactical
coverage
ratio
 Hours
devoted for
tactical
training
 Rating for
contentment
of members
of the staff
 Efficacy of
ratio of
leadership
(measured
74%
10
5
4
Competency
profile
Reimbursem
ent related to
performance
Training for
leadership

5MANAGEMENT ACCOUNTING
using 5
points
scale)
Answer to task 1 (b)
Development of a measure in the form of a KPI for each objective recognized
Financial perspective
Objective Comments KPI Comments
Optimization of
returns earned from
the corporation
Accomplishment of
growth by
enhancement of
firm’s profitability
can help in
optimization of
return
(Valmohammadi &
Ahmadi, 2015).
ROCE, Growth
Attained in Revenue
-Return on capital
employed can help
management of the
firm in understanding
the rate of return
earned by the firm
out of the employed
capital (Jahanshani et
al., 2014). In addition
to this, rate of growth
in revenue also
indicates the
compound
annualized growth
rate in revenue
(Youngran et al.,

6MANAGEMENT ACCOUNTING
2017).
Customer Perspective
Objective Comments KPI Comments
Enhancement of
loyalty of clientele
The enhancement of
loyalty of customers
can help the
company to retain the
existing customers of
LFR
Rating satisfaction of
clientele
The feedback
gathered from the
clientele can be rated
for proper appraisal
of the level of
customer of the
customers (Agnihotri
et al., 2016).
Internal Processes
Objective Comments KPI Comments
Attainment of
business growth
Growth can be
attained by LFR by
appropriate
capitalization of
different deregulation
prospects,
maximization of
different trading
Revenue derived
from firm’s products
and services
Revenue from
different business
segments of LFR can
help in understanding
the rate of growth of
business (Tjader et
al., 2014).

7MANAGEMENT ACCOUNTING
opportunities and
designing of ground-
breaking products as
well as services
(Tjader et al., 2014).
Learning and Growth
Objective Comments KPI Comments
Contentment of
employees of the
firm
Satisfaction of the
employees of the
firm can help in the
development of the
business of the firm
LFR (Perkins et al.,
2014).
Hours dedicated by
the firm LFR towards
training
The total number of
hours dedicated
towards tactical
training can help in
the development of
the career of staff and
lead to contentment
(Tjader et al., 2014).
Answer to task 2
Description of internal perspective measures that is appropriate at an organizational
level

8MANAGEMENT ACCOUNTING
The internal perspective helps in identifying the area in which the firm needs to excel at. The
internal perspectives that has the goal of enhancement of technological potential,
manufacturing excellence, design productivity, introduction of new products and excellence
in customer service for attainment of growth potential of the corporation (Jahanshani et al.,
2014). Particular objective of delivering a continuous stream of diverse attractive solutions to
the customers can be attained by customizing the products as well as service of LFR as per
the needs of the customers identified at the micro level (Perkins et al., 2014). Therefore, the
measures for analysing the internal perspective at the individual store level of LFR might not
be the same as that of the organizational level (Tjader et al., 2014).
Development of two KPIs that can be appropriate to include in the internal procedure
perspective of a balanced scorecard for the individual stores
 Reliability of Index – The reliability coefficient essentially delivers an index that talks
about the relative impact of both true as well as error scores on specifically obtained
scores (Hoque, 2014). In general, the reliability coefficient can be referred to as the
ratio of particularly score variance to specifically the entire/overall variance of test
score (Valmohammadi & Ahmadi, 2015). This index can help in understanding the
scores of internal processes at the individual store level of LFR and at the level of
organization (Mutale et al., 2013).
 Customer satisfaction rate- Customer satisfaction rate that is also referred to as the
CSAT can be considered as an additional KPI for the firm LFR. This indicator can be
treated as a metric that asks the clientele of the firm to properly rate the level of
contentment of the customers with the business products as well as services
(Valmohammadi & Ahmadi, 2015). Essentially, this metric can help in providing a
score that can present an average rate of the responses of the customers. This in turn

9MANAGEMENT ACCOUNTING
can help the management of the LFR in understanding the level of efficacy of the
internal procedures of the business of LFR (Jahanshani et al., 2014).
For each measure included explain the way it links back to the strategy of LFR
KPI Comments Link to DDR’s
strategy
- Reliability of
Index
- This index can assist in the
process of understanding
the scores attained for the
internal processes at
particularly the individual
store level of LFR as well
as at the organization level
(Saeidi et al., 2015).
This can help in
understanding the
efficacy of the
internal procedures
of the firm both the
at the individual as
well as company
level (Youngran et
al., 2017). In order
to evaluate whether
the firm was
attaining its
objective of
delivering reliable,
as well as
responsive supply,
LFR turned to
assess internal
procedures both at

10MANAGEMENT ACCOUNTING
individual as well
as corporate level
- Customer
satisfaction
rate
This is a measure/dimension
that can help the management
of the firm LFR to understand
the extent to which the
products of the firm along with
the services can meet or else
exceed the overall expectations
of the customers (Saeidi et al.,
2015).
Keeping all the
clients of the
company LFR can be
considered to be very
important (Saeidi et
al., 2015). However,
the only way to get
to know about the
level of satisfaction
of the customers of
the business id to
undertake a survey
for analysing the
level of satisfaction
of the customers.
Thus, this dimension
can help the
management of the
firm to understand
the efficacy of the
internal procedures
of the firm and assist
in development of
the same (Agnihotri
et al., 2016). An

11MANAGEMENT ACCOUNTING
effective survey of
the customers can
help the management
of LFR to understand
how contented the
customers of the
company and relate
the same to product
and service delivery
efficiency,
experience of the
customers as well as
overall contentment.