Management Accounting and Balanced Scorecard for P Plc

This report discusses the use of balanced scorecard by P Plc for achieving strategic objectives, evaluating the role of management accounting tool, and providing recommendations for effective performance.

Management
Accounting

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
1. Balanced Scorecard for the group that would help senior executives achieve the stated
group strategic objectives, corporate responsibility aims and strategic developments...............4
2. Balanced Scorecard for one of the operating divisions (Plumbing & Heating or Building
Materials) that would help all levels of employee achieve divisional objectives that support
group strategy..............................................................................................................................5
3. Evaluate the role of management accounting tool within the context of P plc.......................5
4. Recommendations....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The balanced scorecard is a strategic training and control approach that considers non-
financial components of a firm's earnings, like client satisfaction and work procedures, to
produce a clear overview as to how it will operate in the ahead (Abu-Hussein and et.al., 2016).
This report based on the P Plc which UK based organisation which is leading supplier of
plumbing, heating and building materials. In this report consist of balance score card use by P
Plc for the business activities and evaluate the performance effective manner.
MAIN BODY
1. Balanced Scorecard for the group
The Balanced Scorecard is a useful tool for formulating and communicating objectives. A
Principle Components depicts the marketing strategy and assists management in analyzing
causality linkages from among numerous specified objectives. The balanced scorecard minimises
complication by lowering the number of indicators used while providing senior managers with
data from four different perspectives. For most organisations, require small metrics accessible
isn't a concern. Whenever an individuals or professional gives a decent suggestion, they
frequently keep adding additional procedures. P Plc group use balanced score card because it
helps to achieve its strategic objectives like become market leader in world and failing to target
consumer in market. Through balance cad analysis the performance of company in regard of
market accordingly make appropriate strategies for proper implementation (Abyad, 2017).
Through balance card implementation focus on internal procedure that supports to achieve
corporate responsibility aims like
• Strictly adheres to the ethically and with integrity both domestically and with reverence to
supply chain;
• Involve to aim at reducing impact of global damage as possible inside its activities as part of
carbon output, waste collection, and resource recovery through the use of eco - efficiency
methodologies;

2. Balanced Scorecard for one of the operating divisions
It is main strategy metric which is mainly applied by P Plc increase internal performance to
give effective output. Company conducts their operations in Plumbing and heating, building
materials so for this require different types of employees. Through balance score card analysis,
the performance of employees after that provide training and increasing their learning growth. As
a result, it would help to achieve divisional objectives in effective manner (de Guimarães, Severo
and Vieira, 2017).
In the context of Plumbing and heating balance score card use to analysis the all levels
employees who are working at different levels according to their performance. There are
analyses the financial activities after that give suggestions in regard of their work. The retail
activities of the plumbing and heating business are carried out via the recognized display room
chains. Such businesses sell merchandise to local trade’speople as well as the broader
population. By the using all the information of this division take effective steps and ache set
objectives in particular financial year.
3. Evaluate the role of management accounting tool within the context of P plc.
The balanced scorecard is a model which is used for proving the perspectives of the
organisation’s concrete decisions. It is a long – term and ashort – term operational techniques
which plan to focus of the key areas and departments of the organisation(Ainsworth, and et.al.,
2019).
Role of Managementaccounting tools within the P Plc is:
1. It makes the business structure easy by formulating a business strategy which helps is
measuring the productivity of the organisation. It assists in individualising the structure
as the case study of the P plc determined and can help in easily understanding the
functions and structure of the company.
2. It makes a communication easier as the member of the company can easily connect with
the objectives through the medium of balanced scorecard at diverse levels.
3. By the balanced scorecard the business processes can be examined and the be defined
that how the organisational operating and manufacturing activities are performed.
Through this the gaps and the delays can also be found and the wastage of time and
materials will be saved.

4. The economic information of the company P plc can also be used in evaluating the
performance of the company by understanding the sales, costs, expenditures, incomes in
a brief manner through the help of balanced scorecard. By this the metric of the fiscal
data can also be found by performing the analysis on the basis of variances and
ratios(Azis, and et.al., 2020).
5. The customer’s value productivity can also be determined by assessing the market share
of the P plc by different companies of the same industry. By this the customer satisfaction
and loyalty can also be determined and the balanced scorecard can be maintained for the
benefit of the organisation.
6. The internal performance of the business process can also be used as a management tool
which will help in determined the productivity rates, timely measure and the quality
measures that are being taken by the company P plc.
4. Recommendations.
It can be recommended from the above evaluation that P plc should give an opportunity for the
actions to show that the concrete actions should be taken by thinks the target value given can
increase the goodwill of the organisation. The large scope will give it an ability of quantify the
behaviour of the assorted indicators by establishing the model which will be used as a
revolutionary measure for the management and the measurement team to control the results and
the strategies of the organisation.
CONCLUSION
The report can be summed by saying the balanced scorecard creates an essentialgratuity for
theimprovement in the performanceoftheorganisation. It is validated and perceived in a way to
guide the member and act as a challenge for the analysis. It is helpful in critical evaluation of the
management tools by dealing with the critical condition can the organisation faces.

REFERENCES
Books and Journals
Ainsworth, and et.al., 2019.Introduction to accounting: An integrated approach. John Wiley &
Sons.
Azis, and et.al., 2020. Foundation and basic information in designing performance management
system.International Journal of Innovations in Business.2(4).pp.327-349.
Abu-Hussein, R. and et.al., 2016. Project management factors affecting the enterprise resource
planning projects’ performance in Jordan. Journal of Systems and Information
Technology.
Abyad, A., 2017. Globalization challenges in project management. Middle east journal of
business, 55(5478), pp.1-10.
de Guimarães, J.C.F., Severo, E.A. and Vieira, P.S., 2017. Cleaner production, project
management and strategic drivers: an empirical study. Journal of cleaner
production, 141, pp.881-890.