Financial Management for Global Decision Makers

FINANCIAL
MANAGEMENT FOR
GLOBAL DECISION
MAKERS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
(I) Balance scorecard as a performance measurement framework..............................................3
(ii) Annual report provides sufficient information to external stakeholders or not?...................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The term financial management can be defined as a systematic process of making
planning, organising and controlling monetary activities of business entities. Basically, it is too
crucial for companies to manager their financial resources so that effective utilisation can
become possible (Khan and Jain, 2018). Main objective of project report is to demonstrate
understanding about role of balance scorecard for effectively measurement of performance.
Balance scorecard is a form of performance measurement too which assess overall progress of
business entities. Along with mainly focus on measurement of financial aspects of companies.
This tool has a significant affect on business entities as by help of it overall performance can be
measured and further steps are being taken. In the project report, British American Tobacco Plc
has been chosen. This company is listed in FTSE and headquartered in London, United
Kingdom. The company operates its operations in manufacturing of cigarette and Tobacco. The
report covers detailed information about term balance scorecard as a tool of performance
measurement. In addition, report discuss about role of annual report for external users in the
context of chosen company.
MAIN BODY
(I) Balance scorecard as a performance measurement framework.
Origin of balance scorecard- This was developed by Dr. Robert Kaplan of Harvard
University and by Dr. David Norton. In year 1992, both professor published their findings in a
Harvard business article which introduced the idea of balance scorecard. Throughout the next
ten years, they produced a vital range of articles and books in context of BSC. It has below
mentioned features such as:
 It is management framework.
 This is flexible.
 It is adaptable.
Detailed analysis of balance scorecard-
The term balance scorecard (BSC) can be defined as a management system which is used
for finding and enhancing different internal functions of business along with their external

outcomes (McKinney, 2015). This helps to business entities in order to provide feedback so that
managers can draw their futuristic policies and plans. In simple terms, this contributes in an
effective manner for measurement of actual performance. It includes measuring four key aspects
of a business which are as learning & growth, business processes, customers and finance. In the
context of above British American Tobacco Plc, they apply this framework in order to measure
their overall performance and for focusing on different types of aspects. Herein, below
description of these elements is done in such manner which indicates that it is integrated to
measurement of performance:
1. Learning & growth perspective – Learning and growth perspective focuses on capabilities of
human resources. In a business entity managers are responsible for improving capabilities and
skills of work force. Main measures for assessing managers' performance will be satisfaction of
employees, retention and productivity.
 Employee satisfaction- It identifies role of motivating employees for enhancing
productivity, satisfaction of customers. Managers can assess the level of satisfaction of
employees by help of organising different surveys, interviewing employees etc. In the
above company, the managers can find out satisfaction level of their employees by taking
their feedbacks and reviews.
 Employee retention- In organisations, employees can perform well if they are assured
that their job will be retained in any condition. This contributes in an effective manner to
achieve overall goals and objectives. In the British American Tobacco Plc, their
managers assure position of employees which leads to improved organisational
performance.
2. Internal business processes perspective- In the companies focuses on their internal business
process in that they are needed to be excellent. The business process enable businesses to:
 Satisfaction of stakeholders expectations of better monetary returns.
 Delivering value proposition which will help in retaining customers in targeted market
areas.
Such as in the above company, managers assure about their internal business process that it is
accordance of external stakeholders. Eventually, key to success of any business entity is to
control over its process to make reliable and consistent products and services. It becomes