An Evaluation of Finance, Funding, and Strategic Frameworks for Celcom

This report provides a comprehensive analysis of Celcom's financial strategies, focusing on the application of the Balanced Scorecard (BSC) and Strategy Map (SM). It begins with an introduction to Axiata, Celcom's parent company, highlighting its vision, mission, goals, and strategies. The report then critically evaluates the advantages and limitations of both BSC and SM, discussing their roles in translating organizational missions into measurable parameters and visualizing overall strategies. A detailed examination of Celcom's BSC is presented, including objectives, measures, targets, and initiatives across financial, customer, internal process, and learning & growth perspectives. The report also includes a case study of Wells Fargo, which successfully implemented the BSC and SM approach. Finally, the report concludes with recommendations derived from the analysis, emphasizing the importance of aligning individual goals with organizational objectives for enhanced financial performance and customer satisfaction.

Running head: FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
Finance, Funding and Legislative Frameworks for Success
Name of the Student
Name of the University
Author’s Note

1FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
Table of Contents
Introduction......................................................................................................................................2
Identification of Visions, Goal or objective and Strategies.............................................................3
Vision and Mission......................................................................................................................3
Goals and Objectives...................................................................................................................3
Strategies......................................................................................................................................4
Advantages and Limitations of Balanced Scorecard (BSC) and Strategy Map (SM).....................4
Introduction of BSC.....................................................................................................................4
BSC Advantages..........................................................................................................................4
BSC Limitations..........................................................................................................................5
SM Advantages............................................................................................................................6
SM Limitations............................................................................................................................6
Evaluation....................................................................................................................................7
Development of BSC and SM in Celcom........................................................................................7
Recommendations..........................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

2FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
1.0 Introduction
Axiata is one of the major telecommunication companies of Malaysia (axiata.com 2017).The
company has around 320 million of subscribers in almost ten countries.Three major drivers of
Axiata towards success are innovation, connectivity and talent. One of the major unique selling
propositions of Axiata is their highly innovative products and services. In addition, the company
has a diverse portfolio in the mobile network. The business of Axiata has well spread their
business operations in many countries in Asia in different brand names. They are Celcom in
Malaysia, XL in Indonesia, Dialog in Sri Lanka, Robi in Bangladesh, Smart in Cambodia, Ncell
in Nepal, Idea in India and MI in Singapore. In the year 2012, Axiata established the business of
Axiata Digital so that they can expand in the sector of interest based business. In the year 2016,
the group revenue and market capitalization of Axiata was RM21.6 billion and RM42.3 billion
respectively. According to BMI(2017), the market share of Celcom is 29.1% compared to Digi
and Maxis in Malaysia. The current employee base of Axiata is more than 25000 all over Asia.
The main aim of this report is to develop and analyze various aspects of BSC with strategic map
of Celcom.
1.1 Vision and Mission
The brand vision of Celcom is to please their customers by exceeding their expectations with the
help of superior and innovative products and services.The mission of the company is to delight
the customer by exciting products and services. At the same time, Celcom’s another mission is to
develop a profitable business organization that enhances the return of their shareholders. Celcom
is always ready to empower and develop their employees with the help of effective reward

3FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
system. In addition, the company wants to establish a relationship of trust with their business
partners by bringing transparency, integrity and professionalism.
1.2 Goals and Objectives
According to the 2016 annual report of Celcom, the major objectives of this company are
discussed below:
 Cater to the needs of the customers
 Provide excellent products and services.
 Maintain highest level of professionalism and integrity.
 Maintain a friendly and cordial relationship with all the stakeholders of the company.
1.3 Strategies
As per the 2016 investment strategy, Celcomhas adopted the strategy of investing a large
amount of RM5.7 billion during the year of 2016 in order to expand their telecommunication
business. In addition, the company has taken this decision of this large investment in order to
support the investment of RM4.9 billion in 2015 financial year. As a result of this investment,
the company is expecting that the revenue will grow by almost 30 percent in the recent years
(telecomlead.com 2017).
2.0 Critical Evaluation of Balance Scorecard(BSC) and Strategy Map (SM)
2.1 Introduction of BSC and SM
BSC helps in the translation of organizational mission and strategies into different set of
parameters that helps in the implementation of organizational strategies. The application of BSC
in the organizations can be seen in four stages; they are Financial Perspective, Customer

4FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
Perspective, Internal Perspective and Learning and Growth Perspective. The various steps
involved in the implementation of BSC are development of strategic map, setting of objectives,
strategy development, strategy assessment, evaluation, automation, initiatives and the
measurement of performance. In the balanced scorecard approach, Strategy Map is another major
strategic tool. The diagram of strategy map helps in the showing of the overall strategy of the
organizations. Strategy maps help to outline the fundamental business logic of any particular
plan. It needs to be mentioned that strategy map and balanced scorecard complements each other
in the performance measurement and strategy development of the companies.
2.2 Benefits and Limitation of BSC
The implementation of BSC provides structure to the organizational strategies. BSC
provides a logical way to the organizational managers so that they can cover all the strategies
(researchgate.net 2017).With the help of BSC, the organizational managers become able to well
communicatethe organizational strategies with the employee and upper level management
(Grigoroudis, Orfanoudaki and Zopounidis 2012). One major advantage of BSC is that it helps to
align all departments and divisions of the companies with the overall organizational goals and
strategies. Thus, it becomes easy all to achieve them (Keyes 2016). BSC helps the organizational
employees to link their personal goals with the organizational goals and objectives. This provides
major advantages to the companies (Person 2013). The implementation of BSC helps in the
preparation of organizational report based on the developed strategies of the company (Thomas
et al. 2015).
Sometime it become difficult for the business organizations to develop BSC as there are
many processes involved in it. In addition, companies often face difficulties in the
implementation of BSC (Kaplan 2012). Lack of effective leadership can harm the BSC

5FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
implementation (ijbssnet.com 2017). BSC does not provide any suggestion regarding the
improvements in organizational performance (referaat.cs.utwente.nl 2017).The strategy of BSC
take into consideration only four organizational perspectives like finance, customer, learning and
growth. However, there are many other crucial perspectives other than these four that are crucial
to be considered. Thus, this can be considered as another major limitation of BSC (Northcott and
Ma'amoraTaulapapa 2012).
2.3 Benefits and Limitation of SM
With the help of SM, the organizational managers can identify the major drivers for business
performance. In addition, the implementation of SM helps the organizational managers in
showing the cause and effects relation between the outcomes and objectives (Wu 2012).SM
makes the process to understand organizational strategy and objectives simple for the
organizational managers. On the other hand, with the help of SM, the organizational managers
become able to communicate the strategies and objectives with the employees and management
of the companies (Dreveton 2013).Business organizations get the necessary directions to ashore
the organizational goals and objectives (Eden and Ackermann 2013). By using SM,
organizational managers become able to spread the developed strategies all over the
organizations (Kaplan 2012). The major focus on SM is on the organizational objectives so that
they can be successfully achieved (Kaplan 2012).
SM largely requires the participation of organizational people from every level of the
organizations. In case the organizational managers fail to convince the employees or the
workforce of the companies, the implementation of SM cannot effectively done. In addition, the
employees of the companies may feel disenfranchised in the organizations (Eden and Ackermann
2013).The development and implementation of SM is a complex process for the management of

6FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
the companies. Due to this, companies often fails to effectively implement SM. Thus, this is a
major limitation of SM (Wu 2012).
2.4 BSC and Strategy Map in Organization Practice
From the above analysis, it can be seen that the development and implementation of BSC
is a major factor in the business organizations. The main reason is that it provides the
organizations with major advantages. The above discussion shows that the implementation of
BSC provides the structure to various strategies of the companies and as a result, the
management becomes able to cover all the strategic areas. In addition, BSC helps the employees
to align their individual targets with the organizational objectives. However, at the same time,
organizational managers need to consider the limitations of BSC. Moreover, the development
and implementation of BSC is hugely beneficial for the companies.
There are many companies around the globe using the strategies of balanced scorecard
along with strategy map. One of such companies is Wells Fargo. It needs to be mentioned that
Wells Fargo is the market leader in electronic banking with the highest market share of 3.71%.
Total revenue wise the market share is 59.53% and total income wise the market share is 70.06%
(csimarket.com 2017). The market share is highest for Wells Fargo in all the areas. Wells Fargo
took the decision of implementing balanced scorecard and strategy map approach between the
years 1997 to 1998. At that time, with the help of the implementation of balanced scorecard and
strategy map, Wells Fargo achieved some major milestones; like decrease in average cost per
customer by 22%, increase in online customers by 250,000, decrease in website downtime by
71% and others. Wells Fargo has been able to continue their growth in the recent years also.
Wells Fargo has been able to register 3% growth in revenue as compared to 2015; that is $88,267
in 2016 and $86,057 in 2015 (wellsfargo.com 2017). Thus, it is evident that Wells Fargo has

7FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
been growing in a fast pace and one of its major reason is the implementation of balanced
scorecard and strategic map.
3.0 Development of BSC
Objective Measures Targets Initiative
s
FY 1
Financial Return Optimization
Profitability Growth
Asset’s Leverage Base
Operational Cost Management
 ROCE
 Growth in
Revenue
 Asset
Utilization
 Operationa
l Cost
13%
10%
85%
Developme
nt of
Effective
Financial
Strategies
Customer Increase in Customer’s Loyalty  Customer
Satisfactio
n Rating
85% Loyalty
Programs
for
Customers
Internal
Processes
Business Growth
- Different deregulation
opportunity Capitalization
- Different trading
opportunity Optimization
- Innovative Service
Development
- Alliances Utilization
- Leverage the Research and
Development
- With the customers
Customer Service Excellence
- Asset utilization
 Revenue
percentage
from different
products and
services
 Revenue %
from news
services
 NPV of
different
Projects,
products and
services
 % of promise
delivery
17
%
10
%
Infrastructure
Development
Alliance
Programs
Preventive

8FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
Optimization
- Return on allocation of the
resources Optimization
- Cost Management
- Management of
Entrepreneurial Risk
 % Rate
capacity
utilization
 Productivity
improvement
of employee
 % of cost
reduction

75
%
Maintenance
Service
Dispatch
mechanization
Learning
and
Growth
Market Driven Competencies
Satisfaction of the Employees
World Class Leadership
 Strategic
coverage
ratio
 Hours in
strategic
training
 Rating in
satisfaction
of employees
(scale of 5
points)
 Effectiveness
of leadership
ratio (scale
of 5 points)
11
5
4.5
Competency
Profile
Performance
Compensati
on Link
Leadership
Training
Program
Table 1: Balanced Scorecard
(Source: Bhasin 2012)
3.1 Financial Perspective

9FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
In the balanced scorecard of Celcom, financial perspective helps in tracking and
measuring the financial performance of the company. It is considered the most important among
all the four scorecard perspectives. The major objectives of this part for Celcom are to increase
the overall financial performance of the company. The financial performance of Celcom will be
measured against some of the major financial KPIs; they are ROCE, growth in revenue, asset
utilization and operational cost.
3.2 Customer Perspective
In Celcom, customer perspective helps in measuring the growth of customers and
customer satisfaction. In this perspective of balanced scorecard, the main KPI is rating of
customer satisfaction. In order to achieve this, Celcom is required to implement different kinds
of loyalty programs for the customers.

10FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
3.3 Internal Business Process
In Celcom, the major objectives of the perspective of internal process are to ensure
growth in business and to gain customer service excellence. The major aim of this is to put focus
on the achievements of organizational goals and objectives so that business growth can be
ensured along with customer excellence. Thus, some of the major initiatives under this
perspective are development in infrastructure, alliance programs and others.
3.4 Learning and Growth
The major objective of this perspective in Celcom is to focus on the intangible drivers of
the company for future progress. This particular perspective is essential for measuring the overall
performance of the company. Under this perspective, the major focus areas are implementation
of world class leadership, employee satisfaction and others.
The above table shows the development of BSC for Celcom Axiata Berhad. It needs to be
mentioned that there are some specific objectives of Celcom for the development and
implementation of BSC. They are mentioned below:
 The first major objective of BSC is to measure the performance of the organizations in
different segments.
 The second objective is to develop the strategy map for the company based on BSC.
 The third objective is to determine those factors responsible for measuring the
satisfaction of the customers. These are the major objectives of BSC development
(Antonsen 2014).

11FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
From the above BSC matrix, it can be seen that there are some major KPIs to measure the
organization’s performance. Celcom has some specific KPIs in financial perspective; they are
Return on Capital Employed (ROCE), growth in revenue, full utilization of assets, reduction in
operational cost and others. With the help of these KPIs, the company will be able to measure
their financial performance. For customer perspective, customer’s satisfaction rate is the only
KPI that will measure the increase in customer’s loyalty. The specific KPIs for business growth
are appropriate for measuring the growth of the company; they are percentage of revenue from
different products, percentage of revenue from different services, effectiveness in delivery,
percentage of cost reduction and others. The selected appropriate KPIs to measure customer
service excellence are improvement in the employee productivity, enterprise risk management,
cost management and others. The KPIs for learning and growth are strategic coverage ratio,
leadership effectiveness and others (Bhasin 2012). Thus, it can be seen that all these KPIs are
appropriate, as they will be able to measure the company’s performance.

12FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
4.0 Strategy Map
Financial
Customer
Internal Process
Profitability
Growth
Optimized
Return
Asset Leverage
Cost Management
Increase in Customer Loyalty
Business Growth Customer Service
Excellence

13FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
People
Figure 1: Strategy Map
(Source: Wu 2012)
4.1 Explanation of SM in Celcom
SM is developed based on the various factors of developed BSC. From the above-developed
BSC of Celcom, it can be seen that there are four major perspectives and all the perspectives are
connected to each other. It needs to be mentioned that each of the perspectives of the BSC model
has some specific strategic targets. The strategic aim of finance is to increase the long-term
shareholder’s value. The strategic aim of customer perspective is to add more values to the
customers. The strategic aim of internal process is to ensure the overall growth of the company
along with maximum customer satisfaction. The strategic aim of learning and growth is to make
the employees skillful by providing effective training. As per the above diagram, in the financial
section, the arrows show that profitability in growth can be achieved with the help of optimized
return, effective cost management and asset leverage. In addition, with the help of increase in
customer loyalty, growth in profitability can be achieved. Same as, business growth positively
Market Driven
Competencies
Employee
Satisfaction
World Class
Leadership

14FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
affect growth in revenue. On the other hand, with the help of excellent customer service,
customer loyalty can be increased.
5.0 Recommendations
 It is important for the business organizations to maintain the effective quality of BSC. For
this reason, it is recommended that Celcom needs to maintain the quality of their BSC. It
implies that the company needs to develop the KPIs in such a way so that they can be
able to achieve the organizational objectives.
 It is recommended that the management of Celcom needs to effectively communicate the
justification of BSC among all the organizational members that include employees, top-
level management and others.
 It is recommended that the company should be able to communicate the developed
strategies of BSC with the employees. In order to bring contribution towards the
employees of the companies, the employees are required to know every detail about the
strategies. Thus, it is recommended that Celcom should establish effective
communication channel in the organization for providing details and justifications of SM.
 It is recommended that the company need to maintain the quality of SM for the overall
development of the company. For this reason, the management of the company is
required to align SM with the BSC of the company. This will improve the overall
efficiency of the company.
Conclusion
From the whole analysis, it can be seen that BSC is a major technique for the
measurement of organizational performance. On the other hand, with the help of SM, companies

15FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
become able to chalk out effective strategies in order to achieve organizational goals and
objectives. The above study shows that there are many advantages and disadvantages of BSC in
the companies. The major advantage is that it provides a specific structure to the organizational
strategies. In addition, it makes sure that managers cover all the necessary organizational issues.
However, the complex structure of BSC is a disadvantage. On the other hand, SM helps the
organizations in the development of effective organizational strategies. From the development of
BSC for Celcom, it can be seen that the KPIs of the company are well linked with the
organizational goals and objectives. In addition, the above discussion shows that the SM of the
company has developed based on the BSC. However, it is the responsibility of the management
of BSC to maintain the quality of BSC and SM of the company so that they can be aligned with
each other.

16FINANCE, FUNDING AND LEGISLATIVE FRAMEWORKS FOR SUCCESS
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