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Using Balance Scorecard to Improve Sales Performance of Sheffield Surgical Ltd

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Added on  2019-09-23

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This study discusses the importance of using Balance Scorecard to improve the sales performance of Sheffield Surgical Ltd, a manufacturer of high-quality surgical instruments. It explains the concept of Balance Scorecard and how it can be introduced in the company. The study also highlights the benefits and drawbacks of using Balance Scorecard and other relevant aspects of Balance Scorecard for SSL.

Using Balance Scorecard to Improve Sales Performance of Sheffield Surgical Ltd

   Added on 2019-09-23

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Introduction A small and medium sized enterprise known as Sheffield Surgical Ltdwho are dealing in manufacturing of surgical instruments. Sheffield SurgicalLtd started to manufacture this kind of high quality stainless steel surgicalinstruments from the year 1967. Sheffield Surgical Ltd initially started tomanufacture surgical instruments for the National Health Service for thepeople of United Kingdom. However, Sheffield Surgical Ltd expanded theirbusiness after moving their business idea into high quality stainless dentaland veterinary surgical instruments. In the last ten years having a highreputation for manufacturing of tremendous quality of surgical instruments thecompany has expanded into the modern operating environment of supplyinghigh quality of stainless steel surgical instruments. They have emerged as aglobal supplier within the last ten years of their operation. But, the last twoyears, the company has stagnant sales while the operating costs areincreasing day by day. In this study, it will enable the reader about thebalance score needed to promote the sales of the company and to emerge asthe global supplier of surgical instruments. An interview was conducted inorder to recruit and implement new ideas to discuss so that the currentcondition of the company improves.Concept of balance scorecardBalance scorecard is defined as a tool of measuring performance informulation of strategic management so that the malfunction like in the areasof finance, customer perspective, internal process and growth perspective canbe identified within the organization. This identification would improve theexisting condition of the organizations internal functions of the businessenvironment which will result in the outcomes of the external factors of thecompany. Balance score cards provide the organization with a measuring toolto measure the works of the organization and provide a strong feedback(Almohtaseb, Almahameed, and Shaheen, 2017). The amount of datacollected is of qualitative in nature. This data’s are being interpreted by
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managers and various other executives who will help them to take betterdecisions to promote the growth of the organization. Balance score card was first introduced in the year 1992. It wasintroduced to reinforce a favorable working condition within the organizationby analyzing four important areas which arefinance, customer perspective,internal process and growth perspective in an organization. Balancescorecard is mainly used to attain objectives and to initiate the objectives ofattaining the goal of the organization. Balance scorecard gives indication ofthe factors which leads to hindrances in the growth of the organization and willhelp in outlining the strategic changes needed. Balance scorecard mainlyhelps the organization in development of the strategic dynamism and thestrategic objectives (Boscia, and McAfee, 2014).How can balance scorecard be introduced in SSL?In today’s world there is a need for the measurement of theperformance appraisal. There is a need of effective measurement ofperformance which acts as an integral part of the management process. Thesales of Sheffield Surgical Ltd have been seeing a downward trend. Adoptingthe use of Balance score card will enable the management system to find outthe lagging areas of the company. The Balance score card will help thecompany to provide the improvement in areas of product, process, customers,and developing market conditions to increase their sales. Balance score cardwill provide the managers of SSL with a four different perspectives tomeasure. Balance score cards in the areas offinance, customer perspective,internal process and growth perspective provide complementary traditionalfinancial indicators which help in measuring the active participation of thecustomers in their products (Nørreklit, and Mitchell, 2014). The amount ofinformation that is gathered through the help of Balance score card will helpSSL to create a balance between the external and the internal measures ofthe company. This measurement will help the managers of SSL to reveal thetrade-offs which managers uses to measure the performance and this scorecards would encourage them to achieve their future goals. Introduction of
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balance score card will provide a benchmark against which all the newprojects are being evaluated. Benefits of introducingSheffield Surgical Ltd (SSL) being a significant SME in the fields of highstandard stainless-steel and titanium surgical instruments manufacturer, theintroduction of balance score cardis quite significant and important. Theorganization is already struggling with its performance. The manufacturingand operating units are struggling to perform properly (Shafieeet al. 2014). This is the right time to introduce the balance score card.It is one of the beststrategic performance and management monitoring framework that can bedesigned and engineered to help the SSL group to monitor its ownperformance. They are primarily the, Customer Deliverables, FinancialPerspective, Mutual Growth, Internal Processes and. This key areas can helpto supervise the execution of its policies and strategies. In fact, as per thestudy this management tool is found to be the sixth most acceptedand usedmanagement tool across the world (Singh and Sohani, 2014).The successfulimplementation of this balanced score card will increase the performance inoverall and have the highest satisfaction ratings. It enables the SSL group toenhance the performance monitoring into the four inter related perspectives.Its Financial Perspectivehelps to rectify the financial objectives of SSL Group.It allows managers to track financial improvements, success and values of theshareholders. The clearCustomer Perspectivetakes care of the customerrequirements and objectivesso that customer requirements, satisfaction,market sharesand business targets as well as products and serviceperformances (Sreelakshmi and Rao, 2017). On the other hand, theInternalProcess Perspectivehelps the management to monitor the internaloperational process and procedures.Drawbacks of introducingIt is always not advisable to follow the balance score card tools blindly withoutunderstanding the perspectives of its different utilities. The various features ofthe tools need to be understood thoroughly to avoid improper utilization. The
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