ACCT505 Managerial Accounting: Balanced Scorecard Case - Three Firms

This case study provides an analysis of the balanced scorecard approach as a strategic planning tool, focusing on its application in three companies: ECI Group, Wesfarmers, and Woolworths. The study examines how each company utilizes the balanced scorecard to enhance performance across financial, customer, internal process, and learning and growth perspectives. It evaluates the effectiveness of each company's balanced scorecard, highlighting strengths and weaknesses, such as ECI Group's focus on re-engineering its value chain, Wesfarmers' strategy formulation, and Woolworths' focus on present condition improvement. The analysis concludes that the balanced scorecard approach offers a clear roadmap for business improvement and strengthens financial positioning by re-engineering value chain activities.

Balance Score card approach as strategic
planning

BRIEF OF BSC APPROACH
 It assist company to run business effectively
and implement long term planning.
 It is the approach to communicate the
strategic planning to accomplish set
objectives.
 It reveals the four process of organization
which need to be improved.
 It assist in improving the performance of
organization.


BSC APPROACH OF THREE COMPANIES
Particular ECI Group Wesfarmers Woolworths
Financial perspective Focuses on the increase of the
turnover and sales of company.
Increasing the market share and
turnover
Potential market share
Increasing business turnover by
20%
Profitability of the business by
10% in one year.
Customers perspective Customized the Real estate
construction for better satisfaction of
clients
Use of advance cybe system in its
retail chain
Install new payment Gateway for
clients
Customized services for clients
Internal process system Re-engineering of existing process Use of advance technologies to
strengthen the communication
Hiring more experts employees
Focus on the communication skills
of employees

EVALUATION OF THE EFFECTIVENESS OF THE
BALANCE SCORE CARD OF THESE THREE
COMPANIES
Company name Strength
ECI Group The balance score card of the ECI Group
Company covers all the potential outcomes.
It has focused on increasing its turnover and at
the same time planned to re-engineering of its
existing value chain activities (Johnston, & Bate,
(2013).
Woolworths Company The balance score card of the ECI Group
Company covers all the potential outcomes.
It has focused on increasing its turnover and at
the same time planned to re-engineering of its
existing value chain activities (Johnston, & Bate,
(2013).
Wesfarmers Plc The financial perspective of the BSC of
Woolworths focuses on expanding the busienss
by increasing the turnover.
Installing new cyber system to establish
automation in the value chain activities of
business (Chen, Kim, & Yamaguchi, (2014).

BENEFITS OF BSC APPROACH
 Structured strategy
 Easy to communicate strategy
 Align department division of company’ s
objective
 Assist stakeholders to understand the
organization's goal and objective.

ANALYSIS OF BSC STRENGTHS
AND WEAKNESSES
Company name Strength Weakness
ECI Group It strengthen
company to re-
engineering of its
existing value chain
It only give idea
about performing
structure to improve
the existing
performance
Wesfarmers plc The BSC approach
assist in
management to
formulate effective
strategies in market
In case of
expansion of
business, BSC
approach will not be
help of organization
Woolworths It will help company
to improve its
present condition.
It only focuses on
only four factors and
rest factors are
ignored in BSC
approach.

CONCLUSION
THE BSC approach will assist in
providing clear road map for the
business.
It strengthen the financial position of
company by re-engineering its value
chain activities.

REFERENCES
Shen, Y. C., Chen, P. S., & Wang, C. H. (2016). A
study of enterprise resource planning (ERP)
system performance measurement using the
quantitative balanced scorecard
approach. Computers in Industry, 75, 127-139.
Johnston, R.E. & Bate, J.D., (2013). The power of
strategy innovation: a new way of linking
creativity and strategic planning to discover
great business opportunities. AMACOM Div
American Mgmt Assn.
Boscia, M. W., & McAfee, R. B. (2014). Using the
balance scorecard approach: A group
exercise. Developments in Business Simulation
and Experiential Learning, 35.