Booktopia Balanced Scorecard Implementation Analysis Report

This report provides a detailed analysis of a Balanced Scorecard implementation for Booktopia, an Australian online bookstore. The report begins with an overview of the Balanced Scorecard implementation project, emphasizing its importance for enhancing Booktopia's performance and competitiveness. It then recommends strategic objectives across four key perspectives: financial (increasing sales and reducing costs), customer (enhancing brand image and satisfaction), internal business processes (innovative marketing and CSR), and learning and growth (skill development and technological advancement). The report further outlines the financial benefits associated with these objectives, such as increased revenue and improved profitability. An implementation plan is also provided, detailing the steps Booktopia should take to successfully incorporate the Balanced Scorecard methodology. The report concludes with a comprehensive reference list supporting the analysis.

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Balanced Scorecard Implementation
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Booktopia
Balanced Scorecard implementation
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1. Overview of BSC Implementation Project
The company selected for this particular assignment is Booktopia Private Limited and
this company provides online books to the citizens of Australia. The company has to
offer various sorts of products like variety of books, DVDs and maps to the people of
the country. The organization is even looked upon to be one of the main competitors
of Amazon Ltd and hence it is vital for the company management to construct
suitable plans and strategies so that the performance and the activities of the
company can be further enhanced (Akkermans and Van Oorschot 2018). It is seen
that one of the significant measures that can be undertaken by the management of
the company within their process in order to enhance their activities is the approach
of Balance Scorecard. The process of Balance Scorecard ideally assists the
management to gain significance on the business targets and take essential actions
for the intention of attaining the target, which have been founded by the
stakeholders and the management of the organization.
Balance Scorecard is a tool for the management which is utilized by the management
of an organization in order to maintain effective management of performance of the
business and constructing objectives for various areas of the business and
monitoring their performance. Most of the companies make use of the approach of
balance scorecard in order to attain competitive advantage in the market with the
help of the most effective practices of strategic management. The aim of balance
scorecard is to ideally assess the performance of the company and even supervise
the operations of the business in order to make sure that the same is synchronized
with the objectives and goals that are long term in nature (Rampersad and Hussain
2014). Furthermore, balance scorecard takes into account four key perspectives
based on which the performance of the business can be guided. The balance
scorecard process is incorporated by most of the organizations in order to maintain
efficient communication which can be maintained among the lower level and the top
level management. Balance scorecard is an efficient process in order to maintain
proper communication of the plans and the policies of the business among all the
departments of the company.
2. Recommended BSC
Strategic Objectives Performance Measures
Financial Perspective
 Business sales can be increased
 Reduction in the expenses and the
cost of the organization
 Growth sales by 20%
 Fall in the operations cost of
the organization
Customer Perspective
 Enhancing the brand image of the
business
 Enhancing the overall
number of customers
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 Enhancing satisfaction of the
business
 Service rating and positive
feedback
Internal Business Process Perspective
 Innovation in marketing
 Contribution towards the social
causes
 Making use of innovative
marketing strategies and
social media
 Donating books and
compliance with the policies
of CSR.
Learning and Growth
 Incorporating innovative
processes
 Development of the skills of the
employees
 Development of technology
 Enhance the effectiveness of
the business
Table 1: Recommended Balanced Scorecard
3. Financial Benefits
Performance Measure How measure links to improved financial
performance
Rise in the sales of the business The rise in the level of sales of the company will
even increase the profits and the revenues of the
company.
The management of the organization estimates that
the sales of the company will be rising by 20% by
making use of the policies related to strategic
management of the organization (Martello,
Watson and Fischer 2016).
The business sales can be enhanced by taking
assistance of an extensive sales plan in the business
and to maintain the target of sales, which is created
by the management personnel of Booktopia Private
Ltd.
Decrease in costs The business expenses even has an impact on the
business profits directly and hence if the expenses of
the company are mitigated in an effective manner, it
would lead to rise in business profits and thereby
assisting in attaining the financial aim of the
company.
The management of the organization requires
suitably managing the expenses of the organization
and thereby taking the required steps for the decline
in costs and even avoiding resource wastage of the
organization. Furthermore, the company
management even needs to make sure that there is
no existence of unproductive expenses in the
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organization.
Enhancement in the brand image of the
company
Brand image has a significant role to play in the
development of sales and even battle the
competitive pressure within the business
environment. Brand image can assist the company to
maintain their existing customers and this assists the
management of the organization in the creation of a
suitable amount of profit for the business. Brand
image of an organization is related closely with the
status of the organization and therefore the
management has to undertake essential actions in
order to make sure that the brand name of the
company is maintained.
Enhancing the level of customer satisfaction For the purpose of maintaining effective image of
the company by looking after the perspectives of the
customers, the management of the organization
requires to understand the level of satisfaction of
the customers. This even has an impact on the
income of the company.
Innovation in Marketing Booktopic Private Limited and their management
require making sure that there exists a focus on the
activities of marketing of the company which can
assist the company to attain their financial goals.
The management of the business looks to make use
of social media as mode of contact in order to go out
and reach more customers with the help of which
the customer base can be enhanced.
Contribution towards the social cause The management of the business even needs to
undertake investments in the society and this would
explain that the company is accountable towards the
demands of the society and this would more develop
the company status. The management of the
organization (Reefke and Trocchi 2013). The
management of the business even looks to provide
books to various schools and libraries so that there is
no impact on the education of the students. This will
even attain the requirements of CSR of the company.
Incorporating Innovative Processes The management of the organization requires to
incorporate innovations within the company in order
to attain technological developments within the
enterprise and extensive level of effectiveness can
be advocated within the business. Furthermore,
these approaches can assist the management to
attain competitive edge within the market which is a
positive symbol for the company. The innovative
approaches in the business and this would assist the
management to attain increased profits from the
operational activities of the business.
Development of Skills for the Employees The business employees are taken to be the nervous
system of a company and hence suitable actions
requires to be taken by the management in order to
develop the skills that would be helpful to the
employees. The management has to take the
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additional expenses related to the training program
so that adequate skills are crated for the employees
with the help of which they can perform their
activities in Booktopia Private Limited. This will not
only develop the effectiveness of the company but
would even increase the profit of the business.
Table 2: Benefits of the Balanced Scorecard
4. Implementation Plan and Considerations
By looking into the business activities of Booktopia Private Limited, it is seen that the
company has not incorporated the approach of Balance Scorecard and hence it
would be a suitable action for the company management to incorporate the process
within the business activities so that effective performance can be attained for the
business (Cooper, Ezzamel and Qu 2017). The management personnel of Booktopia
Private Limited can incorporate the balanced scorecard method by taking advice
from the various departments, which are operating the business and even discusses
with the measures of performance which are being taken into account for the
business associated to the various areas of performance of the company.
The management of personnel of Booktopia Private Limited can even construct
targets for the company by looking into account the market scenario and the
performance of company for the previous five years. In order to incorporate the
approach of balance scorecard within the company, several meetings needs to be
undertaken and explicit discussion has to be given with the help of which effective
strategies are constructed by looking into the long term aims of the company. After
the incorporation of the plan is completed the management requires to monitor the
same in order to gain more efficient results.
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Reference
Akkermans, H.A. and Van Oorschot, K.E., 2018. Relevance assumed: a case study of
balanced scorecard development using system dynamics. In System Dynamics (pp.
107-132). Palgrave Macmillan, London.
Cooper, D.J., Ezzamel, M. and Qu, S.Q., 2017. Popularizing a management accounting
idea: The case of the balanced scorecard. Contemporary Accounting Research, 34(2),
pp.991-1025.
Martello, M., Watson, J.G. and Fischer, M.J., 2016. Implementing a balanced
scorecard in a not-for-profit organization. Journal of Business & Economics Research
(Online), 14(3), p.61.
Rampersad, H. and Hussain, S., 2014. Personal balanced scorecard. In Authentic
Governance (pp. 29-38). Springer, Cham.
Reefke, H. and Trocchi, M., 2013. Balanced scorecard for sustainable supply chains:
design and development guidelines. International Journal of Productivity and
Performance Management, 62(8), pp.805-826.
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