Business Performance Enhancement: Strategy Map Report and Analysis

This report examines the application of strategy maps as a management tool to improve business performance. It outlines the core components of strategy maps, including financial, customer, internal business functions, and learning and growth perspectives. The report emphasizes the interconnectedness of these elements and their impact on organizational success. It also discusses the advantages and disadvantages of using strategy maps, such as their ability to provide a holistic view of performance and facilitate strategic planning, while also acknowledging limitations like complexity and the need for skilled implementation. The report concludes with a discussion on how strategy maps can be used to address specific business challenges, such as decreasing shareholder investment or declining sales, by focusing on customer value, loyalty, and service innovation.

IMPROVING BUSINESS
PERFORMANCE (1)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Improving business performance is the key functions of organisation which is related to
serving consumer satisfaction and maximizing profits. The report will outline about strategy
maps which is an effective management tool that asst the firm in regulating its performance
according dynamic market trends.
MAIN BODY
Strategy maps is an effective management tools as it establishes strategic goals for
organisation which are focused on four different elements that is financial, customer, internal
business functions and learning and growth. However, in accordance to maps tit is important for
an organisation to manage its successful growth in all four elements for mapping improvement in
business performance (Rahimnia and Kargozar, 2016). The perspective is strategic maps are
interrelated to each other and sets target for firm. Apparently, it is considered as most prominent
tools of business, because it aims at gathering of essential and reliable information which relates
to cost effectiveness of company and its services. Further, the mapping and its process is based
on vision and mission statement f organisation that clearly identified alignment of strategic
objective.
Strategy map of enterprise focuses on financial perspective which aims at maximizing
shareholder values because these are the key investors of business and share huge interest in
profits and losses of firm (Valmohammadi and Sofiyabadi, 2015). On the other hand consume
perspective in mapping helps the organisation in innovating products and services as per buyer's
expectation in order to meet their demand. In addition, it is an effective management tools
because it the entity to inspire loyalty of buyers by increasing expertise and implementing
optimize technology. This strategy assists the organisation in gaining consumer trust which helps
in raising shareholders value.
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Apart from this, internal business functions in mapping approach is related to developing
quality partnership with consumers by offering them commodities by matching up with their
expectations. Meeting needs and demands of customer is an operational effectiveness which is
attained by strategic mapping of buyers preferences (Lueg, 2015). Further, the loyalty concept
of approach helps the company in managing quality of products because it is asset of firm which
helps in gaining trust of buyers on products and services.
Apparently, the quality partnership aspect of management is concerned with recruitment
of quality staff which understands concerns of customers and have knowledge over dynamic
market rends which helps the organisation in eating customer needs and wants. Whereas,
learning and growth stage of strategic mapping is focused on training of workers in order to
promote and mating quality of services. Thus, to attain satisfaction over strategic mapping the
company implements the use of key performance indicators in order to analyse business
performance and effectiveness of strategic maps as per specified targets. Thus, from the
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Illustration 1: Strategy map
Source: (Overview: Strategy Map, 2018.)

discussion over strategic map it can be stated that it is a tool of balance scorecard which helps in
relating over business perspective which are related improvement of organisational performance
(Okongwu, Brulhart and Moncef, 2015).
Advantages and disadvantages of Strategy map.
An organisation or a management team consists of complex plans and strategies. It is not
possible to observe all the sectors separately. So strategy map is developed so that overall
performance of an organisation can be assessed at a glance(Suryadi and Tan 2016). Thus, it
saves our time. The short term strategies are outlined for long term with the help of this map.
Every individual components can be analysed through its mapping.
On the other hand this particular methodologies are needed to understand this map. This may
also cause the incomplete informations about our performance.
All the desperate tasks are identified by this map that is very helpful in realising all the
strategies including all the sectors. It may be divided into parts for easy study and analysis
(Daniela-Neonila and Roxana-Manuela, 2014). On meanwhile it does not allow to asses all the
physical activities and environment of organisation. It will be better to visit the sites if new
sectors are going to be opened instead of only noticing the map.
This works like strategic management system by which dynamic and collaborative
planning is created. This will also help in align the organisation by linking control activities and
ownership will be also encouraged. But it has very complex process so it can not be made to
understand everyone easily. It always needs a skill full person to operate it. Leadership of the
management may be disturbed
All the organisation can be brought together at a single moment. The role of every
individuals can be identified and they can be put in. Strategy communication among the business
men would be easy. On the other hand there is possibility to loss the personal performance
identity and encouragement. Example can be taken if a manager is involved in the strategic
formulation process but it is not necessary that they will be made involve in implementation
process(Jones,2016.).
Its holistic view is featured by mapping that allows in reducing the risk management. It
can easily identify the deficiencies and weakness lie within the organisation so that appropriate
solutions can be found out before any harm could happen(Bryson, Ackermann and Eden2014).
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But it's limitation is that it can not be implemented everywhere because its implementation
requires full attention and active participation.
In accordance to decreasing investment by shareholders, the company should implement
the use of strategic map. It will assist the firm in deriving lacking areas and improvement
measures. However, with the help of analysis the firm can enhance its customer value and
loyalty in order to seek interest of shareholders.
Further, in case of decreasing sales and innovation in services, the firm can implement
use of map and should derive the need of recruitment or training in order to enhance the value of
services as per market trends. This evaluation with the helps of strategic mapping will assist the
management in improving customer perspective and attain objectives.
CONCLUSION
Strategy map is a diagrammatic presentation that is used to pursue the all structural and
strategic process of an organisation. It is very effective for the companies that are dealing in the
international market. So many reformations can be brought by the use of this mapping.
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REFERENCES
Books and journals
Bryson, J. M., Ackermann, F. and Eden, C., 2014. Visual strategy: Strategy mapping for public
and nonprofit organizations. John Wiley & Sons.
Jones, P., 2016. Strategy mapping for learning organizations: building agility into your
balanced scorecard. Routledge.
Lueg, R., 2015. Strategy maps: the essential link between the balanced scorecard and action.
Journal of Business Strategy. 36(2). pp.34-40.
Okongwu, U., Brulhart, F. and Moncef, B., 2015. Causal linkages between supply chain
management practices and performance: a balanced scorecard strategy map perspective.
Journal of Manufacturing Technology Management, 26(5). pp.678-702.
Rahimnia, F. and Kargozar, N., 2016. Objectives priority in university strategy map for resource
allocation. Benchmarking: An International Journal. 23(2). pp.371-387.
Roxana-Manuela, D. and Daniela-Neonila, M., 2014. The Need For Srategy In The Training Of
Employees: A Condition For Improving The Human Capital In Romania, As Eu
Member. Management Strategies Journal.26(4).pp.77-83.
Suryadi, A. and Tan, Y., 2016. Perancangan Strategy Map dengan Balanced Scorecard (Studi
kasus: PT Dian Megah Indo Perkasa, Bandung). Integra.3(2).
Valmohammadi, C. and Sofiyabadi, J., 2015. Modeling cause and effect relationships of strategy
map using fuzzy DEMATEL and fourth generation of balanced scorecard.
Benchmarking: An International Journal. 22(6). pp.1175-1191.
Online
Overview: Strategy Map. 2018. [Online]. Available through:
<https://balancedscorecards.com/strategy-map/#strategy-map-adding-arrows>.
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