logo

Impact of Balanced Scorecard on Firm Performance

   

Added on  2020-02-05

15 Pages4338 Words97 Views
Professional Development
 | 
 | 
 | 
MANAGEMENTACCOUNTINGPERFORMANCEEVALUATION
Impact of Balanced Scorecard on Firm Performance_1

Table of ContentsINTRODUCTION......................................................................................................................1TASK 1 .....................................................................................................................................1Explaining the use of balance scorecards for performance evaluation in ITS......................1TASK 2......................................................................................................................................5Creating Balanced Scorecard for Integrated Technology Services (UK)..............................5TASK 3......................................................................................................................................7TASK 4......................................................................................................................................9TASK 5......................................................................................................................................9Review of the use of Integrated Technological Service share scheme whether it helps to . .9motivate employees to work towards achieving the goals or not..........................................9CONCLUSION........................................................................................................................10REFERENCES.........................................................................................................................11Index of TablesTable 1: Balanced Scorecards of Integrated Technology Services Ltd......................................9
Impact of Balanced Scorecard on Firm Performance_2

INTRODUCTIONIn the present age, management plays an crucial role in the company's success as theymake business planning, controlling, coordinating the functions and take strategic decisionsin order to perform better in future. Present market is highly competitive in which everybusiness organization need to use advanced technology to compete effectively in the market.Integrated Technology Services (ITS) is a UK based organization who is responsible toprovide best quality of information technological products and services to large number ofconsumers. It was established in the year 1995 and highly dedicated to fulfil customer needsthrough serving them qualitative products. Present project report will discuss the range offinancial as well as non-financial performance measurement tools that can be use by ITS forperformance evaluation. Balance scorecards is one of the significant tools that can be use byITS's management to evaluate and examine and examine their performance so that managingdirector can take efficient quality of decision. It will lead to improve future performance ofthe company to a great extent. TASK 1 Explaining the use of balance scorecards for performance evaluation in ITSITS (UK) Ltd, is a providing wide range of communication services that includestelephone services, Local Area Network (LAN)/Wide Area Network (WAN) , Videoconferencing, Video Surveillance, Access Control, Networking Services and other datasecurity services to large number of users. The aim of ITS is to serve customers withexceptional services and at cost effective prices. ITS uses six selection criteria to achieve thisobjective that are quality, reliability, ease of use, cost effectiveness, continuous evolution andmarket commitment. All these factors lead to fulfil customer demand effectively.
Impact of Balanced Scorecard on Firm Performance_3

As per the scenario, Group Managing Director of ITS faced a declined in net profit by6%. It indicates that ITS's financial performance in terms of profitability has been reduced.Now, directors are wishing to identify the reasons behind this adverse business performance.Balance scorecards (BSC) is an effective tool available for this purpose. It is a strategicplanning and performance management tool that is highly using in the present market. Ithelps to measure ITS's financial as well as non-financial performance to a great extent(Grigoroudis, Orfanoudaki and Zopounidis, 2012). It is a tool that assist managing directorsto keep track of execution of all the operating activities by the staff within their control andmonitor these functions on a regular basis. Some of the most important characteristics of BSCis given below:It highlight the strategy of the company through focusing on cause and effectrelationship among different elements. In context to Integrated Technology Services,it can use BSC which pinpoint about its objectives and strategic goals. In other words,BSC will help to focus on the strategic agenda of ITS (Giannopoulos and et.al., 2013).It helps to communicate formulated business strategy to all the members of IntegratedTechnology Services. This in turn, all the associated members will do their workaccordingly to it and take decisions that will contribute to accomplish ITS's targets ina great manner. In ITS, BSC system will help to give strong emphasis on its financial as well as non-financial objectives. Under the financial performance, it helps to analyse revenues,
Impact of Balanced Scorecard on Firm Performance_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Report on Target Costing Technique
|13
|3843
|51

Business Operations And Risk Management
|18
|3771
|14

Introduction of Balanced Scorecard for Sheffield Surgical Ltd
|2
|664
|306

Balanced Scorecard Analysis for Sheffield Surgical Ltd
|3
|769
|184

Significance of Balance Scorecard in Management Accounting
|15
|3766
|481

Management Accounting Assignment Sample (DOC)
|12
|3686
|66