Performance Measurement System - Implementation of the Balanced Score Card (BSC)

Performance Measurement
System - Implementation of the
Balanced Score Card (BSC)

EXECUTIVE SUMMARY
This report is presented on the topic performance management system by
implementing balanced scorecard in the Clean Seas Seafood Ltd organization. The
report carries out the in-depth evaluation of the topic along with the analysis of the
return on investment of the company. Based on the findings, it is concluded that
implementing balanced scorecard would be beneficial for the company in keeping
control of its business operation and enhance its performance.

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................4
MAIN BODY.............................................................................................................................4
Company overview..............................................................................................................4
Computation of return on investment and ways to improve it......................................4
Balanced Scorecard and its components........................................................................6
Ways in which BSC can improve the competitive advantages of the company........9
CONCLUSION.......................................................................................................................11
REFERENCES......................................................................................................................13

INTRODUCTION
The performance measurement system (PMS) is a system which is used for
the purpose of improving the performance of the business. The PMS is characterized
as the strategic system through which the business organization observe and
measure the performance of its intangible elements which can be in the form of
quantitative and qualitative assessment. It is the brief set of measures that assist the
businesses in decision making processes. In this report, Clean Seas Seafood Ltd is
taken as an organization. This report presents about the suitability of the balanced
scorecard system for evaluating the performance of the company and the ways in
which it can be implemented for improving the competitive advantage of the
company.
MAIN BODY
Company overview
The Clean Seas Seafood Ltd is an Australian based seafood production
company having a specialization in sea-cage aquaculture of yellowtail kingfish. It
was founded in the year 2000 and was list on ASX in 2005. The company has
focussed it efforts towards the sustainable production of the Hiramasa Kingfish. It is
the global leader in respect to the full cycle breeding, production and sale of the
Yellowtail Kingfish and is also known for its high quality fish and has become the
largest producer of the same outside Japan. It provides fresh fish all over the world
across 52 weeks of the year.
Computation of return on investment and ways to improve it
Return on investment: It is the performance measurement tool which is used
to analyse the efficiency of the business in utilizing its amount invested. It is used to
directly measure the return on the amount invested. It is the most popular metric
because of its simplicity. If the return on investment is positive, it would be
considered to be worthwhile but if it is negative, then it implies a net loss (Ernayani
and Sari, 2017). From the investors perspective it is more favourable to have a
higher rate of return which will indicate that the company is efficiently managing its
total assets which is generating greater amount of net income. It is mostly useful in
comparing the companies within the same industries. This ratio mainly helps in the