Management Accounting and Financial Planning: Balanced Scorecard, Pricing Strategies, and Contribution Analysis

Management
Accounting and
Financial Planning

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Define the concept of Balanced scorecard and in what ways it could be used by the airline
business. Also highlight two non financial measure which the airline company would be
adapting or using for monitoring its performance and results....................................................3
State the pricing policies and strategies which might be adopted while launching a new
commodity or product, also describe the pricing strategies as how the profitability and pricing
strategies would be affecting sales, profit, revenue of tourism and travel based companies
after the COVID-19 pandemic....................................................................................................6
Describe the role of contribution tools and techniques in decision making process while
giving suitable examples.............................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The report prepared as under takes in account the concept of Balanced scorecard and in
what ways it could be used by the airline businesses, it would also help to understand two non
financial measure which the airline company would be using for monitoring and controlling its
rendered performance. Balanced scorecard can be explained as a management system which
aims at translating the organisation strategic objectives which in turn are controlled, monitored
and measured and altered if demanded for ensuring that an companies strategic aims are
completed and achieved. The report includes various sort of pricing strategies which are to be
considered for assessing the level of profitability and in what ways the chosen pricing strategy
would be affecting profit, revenue generated and growth of the business over a period of time.
The airline company which has been chosen is Emirates airline company. It is a organisation
which is located in middle east, it operates over a range of 1990 passenger flight per week, from
its related hub at Dubai international airport, for over 101 destinations in 61 territories across 6
continents.
TASK
Define the concept of Balanced scorecard and in what ways it could be used by the airline
business. Also highlight two non financial measure which the airline company would be
adapting or using for monitoring its performance and results.
The concept of Balance scorecard is a strategic management result metric which is more
useful and helpful for business enterprises to identify and improve their operational functioning
prevailing in the firm for helping to render external outputs. It measures previous year
performance based information and would provide companies with feedback on ways which
would help in better decision making keeping future situations in mind. It generally aims at
translating an organisation's strategy based goals into a set of business enterprise performance
based objectives which in turn are being managed, measured, controlled, monitored and
modification if needed for ensuring that an company's strategic goals are achieved (Bastida,
Bracci and Hoque, 2021). Balanced scorecard could be used to have a better understanding about
what the company is aiming at and in what ways it could be achieved. It can be implemented
with the help of planning well in advance as what the business wants to achieve and preparing
budgets which would help it to fulfil them in given time period.

Two non - financial measures which would help in assessment and measurement of performance
can be explained such as:
 Market share: It can be defined as the market being captured which can be used for
explaining what market area has been accessed. Emirates Airline company has proved to
be rendering best services over the globe for the related period as compared to others. It
is one of the top companies which have served their commitments in best manner
(Heggen, 2019). The strategies of company have been realised to revolve around for
achievement of global expansion. In other way the strategies of business has a sole aim to
attain global competitiveness in the related industry and manage stability as well
sustainability too. Market share can be increased rapidly when the company would be
focusing on opportunities and tapping them well in advance for making best use out of
them. Market share denotes positioning and profitability of the company in a competitive
environment. It helps to understand whether the brand image developed by the company
is true and fair, it also is useful for users to have an idea about growth and expansion over
a period of time. If Emirates airline company is observed to increase its market share with
each passing year it depicts that it is carrying out its function on a efficient and effective
basis.
 Innovation: It can be explained as the capability and ability to bring new goods or
services in market successfully (Heinicke, 2018). Innovation is useful to plan a new
product or service or make certain changes and improvement in the existing product by
finding where it is lacking and lagging behind. Non financial measure such as innovation
cannot be measured on financial grounds or in any figures which would help to ascertain
growth level in a business. Thus, such measures are considered in non financial areas but
seem to affect business in same way such as financial measures. Innovation can serve as a
advantage over others which would turn out to be obsolete and old with the passage of
time but with innovative qualities one could make slight changes and get attractively
placed in marketplaces. Innovative plans could serve to be helpful for cutting down costs
and expenses and in return increasing revenues.