Hungry Jacks: Balanced Scorecard Strategic Performance Evaluation

This report provides a comprehensive analysis of Hungry Jacks' implementation of the balanced scorecard (BSC) for performance management. It begins with an introduction to the company, its mission, and its strategies, highlighting the importance of customer satisfaction and brand image in the competitive fast-food industry. The report then differentiates the BSC from traditional performance measurement methods, emphasizing its suitability for Hungry Jacks. It delves into the four perspectives of the BSC: financial, customer, internal business processes, and learning and growth. The financial section focuses on enhancing earnings and returns to attract investors. The customer perspective emphasizes satisfaction and brand image. Internal processes are examined to ensure operational efficiency. Learning and growth are assessed to foster innovation and employee development. The report concludes by assessing the BSC's effectiveness for Hungry Jacks, highlighting its role in strategic planning and decision-making. The analysis covers investments, franchise enhancement, and the importance of operational excellence, making it a valuable resource for understanding performance evaluation in the fast-food sector.

qwertyuiopasdfghjklzxcvbnmqw
ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklz
xcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwer
tyuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklz
xcvbnmrtyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqw
MANAGEMENT ACCOUNTING

Hungry Jacks
Executive Summary
The balance scorecard approach has assumed a place of special importance in private held
companies. It is one of the well known methods that helps in performance measurement
where both financial, as well as non-financial segment is taken care of. In this report, the
major emphasis is on the balance scorecard approach where its implementation is studied in
the context of Hunger Jacks. The report revolves around Hunger Jacks and BSC. It starts with
the introduction followed by the mission and strategy of the company. Further, BSC is
differentiated from the traditional measurements and the suitability of the approach is
highlighted upon.
2

Hungry Jacks
Contents
Introduction...........................................................................................................................................3
Hungry Jacks..........................................................................................................................................3
Business affairs of Hungry Jacks............................................................................................................3
 Vision.............................................................................................................................................4
 Strategy.........................................................................................................................................5
Investment in under-performing markets or businesses.......................................................................5
Enhancing the franchise........................................................................................................................5
Choosing excellence and operational growth........................................................................................6
Balanced scorecard measure.................................................................................................................6
 Financial approach.........................................................................................................................7
 Customer measures.......................................................................................................................7
 Business processes........................................................................................................................8
 Growth and learning......................................................................................................................8
Suitability of balanced scorecard to client.............................................................................................9
Distinction in the measures of balanced scorecard...............................................................................9
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12
3

Hungry Jacks
Introduction
This report plays a key role in highlighting the present and proposed measures of Hungry
Jacks. In relation to this, it is noticeable that the company has changed its strategies and
policies so that it can surpass its last overall organizational performance. Nevertheless, the
company has undertaken or implemented a balanced scorecard strategy so that it can perform
effectively in the present year, thereby facilitating a better path for future developments. For
such purpose, the company has often accounted for its past performance as an efficient
benchmark that must be surpassed in the upcoming years. Moreover, when it comes to the
Board, techniques like execution and implementation of desired plans, and decision-making
is given due priority. Further, it is necessary for the management board of the company to
design adequate standards for the company and its workforce so that the actual performance
can be easily reviewed with the help of targeted and anticipated performance trough
evaluation of time factors too. Nonetheless, with the assistance of a balanced scorecard
measure, the company will become capable of scrutinizing its internal environment and
thereafter, design the same in such a way that can generate more profits and enhance the
organizational performance as well.
Hungry Jacks
This company is primarily a franchise of the global Burger King Corporation and has been in
operation since the year 1971. Hungry Jacks is based in Australia and its initial success
started with a rapid development of its first south Australian store located in Anzac Highway
and this is followed by Kedron in Queensland. It is basically a wholly-owned subsidiary of
Competitive Foods Australia. Furthermore, the company operates and owns all the
restaurants of Burger King in Australia (Hungry Jacks, 2018). Besides, as a master franchise
for Australia, it is duty bound for licensing fresh operators, opening its new stores, and
undertaking standards oversight of franchised locations throughout Australia. Overall, with
over 390 locations throughout the country, Hungry Jacks has become the second biggest
franchise of Burger King in the entire world.
Business affairs of Hungry Jacks
The company intends to become the best fast food hamburger restaurant through deliverance
of customer satisfaction in its services, products, value, and cleanliness. This is the reason
why the company has undertaken a balanced scorecard measure to ensure that its internal
4

Hungry Jacks
framework is designed in a manner that facilitates in smooth flow of operations. In relation to
this, the company has ensured that both non-financial and financial segments of its
performance have been assessed by the company so that a clearer picture can be offered to
the stakeholders regarding the same (Hungry Jacks, 2018). This can assist the company in
attaining its objective of satisfaction of customers, thereby facilitating a path for enhancement
of reputation and goodwill.
This approach used by the company is that wherein the past year’s performance is compared
to that of the present tenure, the actual employees’ performance is compared with that of the
forecasted performance, the present company growth is compared with that of its standard
growth, and the actual time incurred is compared with the forecasted time. This is the reason
why such measure is also commonly known as performance measurement approach. The
company has also undertaken additional strategies that can allow it to leverage and develop
its performance (Hungry Jacks, 2018). Moreover, it can also be observed that Hungry Jacks
prioritizes its vision and mission that has allowed it to sustain in such competitive market.
Further, the company has enjoyed its reputation in the entire industry and it has been
developing over the years owing to its policies, plans, strategies, and procedures (Parrino et.
al, 2012).
As the fast food industry is entirely competitive and dynamic in nature, it is prone to severe
fluctuations and thus, Hungry has undertaken the approach of balanced scorecard to ensure
that it succumbs to all these segments effectively. Moreover, it has also become simpler for
the board to implement necessary and legitimate decisions with the assistance of reports
collected through such approach. Nevertheless, such approach can be regarded as the most
effective one for a fast food company like Hungry Jacks that has been adequate and effective
in its measures and decisions towards attainment of organizational goals. Overall, for a
company like Hungry Jacks to enhance in the market, implementation of efforts and
strategies are very crucial than setting a mere objective. Therefore, it is the company’s duty to
observe its measures in an effective way so that in the event of contingencies, corrective
actions can be duly implemented (Hungry Jacks, 2018).
 Vision
The company’s vision has been to make sure that the customers who visit their places are
provided with great food and the same is of superior quality, cleanliness, and service. It
focuses on enhancing its brand image in the entire market (Hungry Jacks, 2018). Moreover, it
5

Hungry Jacks
also has the vision of opening many new stores throughout Australia that can assist it in
attaining its goals and objective.
 Strategy
Hungry Jacks has always believed in promoting innovative strategies and vision among its
workforce by accounting for 4 major strategies. Firstly, it believes in offering importance to
all the visitors. Secondly, it prioritizes their safety, thirdly it enables integrity within its
framework, and lastly it prioritizes upon consistent performance that is based on requirements
of customers (Hungry Jacks, 2018). Overall, the company’s prime strategy is customer
priority as it can allow it to retain, survive, and compete effectively against other players.
Investment in under-performing markets or businesses
The company’s investment in under-performing markets or businesses can assist it in creating
and attracting various opportunities. Further, both developing and developed markets play a
vital role in bringing fresh opportunities for the organization. In addition, the channels of
distribution also possess a very crucial role in addressing these opportunities. Nonetheless,
the company is also capable of performing in both under-performing and developed
economies as the quality of food items have been structured properly (Hungry Jacks, 2018).
Moreover, with the prevalence of an effective distribution system, the fast food items are
made so tastier that they can encounter all market requirements by being in massive demand.
Nevertheless, the company has accounted for investment as its significant tools because it has
assisted it in attaining intended objectives and assists the company in progressing towards
future developments. This is the reason why it believes in facilitating enhanced investments
in those markets that are considered as under-performing in nature.
Enhancing the franchise
Hungry Jacks exerts due emphasis on all its affairs especially retail businesses. Nevertheless,
with the assistance of every offline and online channels of distribution, the company expands
and enhances such segment throughout the world. Further, the diversification of such retail
segment can allow the company to facilitate accessibility of food items to the customers,
thereby playing a key role in enhancing the demand for fast food as and when it becomes
popular to the audience (Hungry Jacks, 2018). Moreover, the company is entirely capable of
encountering and addressing the requirements of its customers based on their expectations
with enhanced access to such retail affairs.
6

Hungry Jacks
Choosing excellence and operational growth
The company has been concentrating on its value of brand and high expertise in marketing
levels. This can assist it in developing and call for excellence at each level. Furthermore, the
company possesses a workforce that is highly qualified, trained, and updated in their
respective fields that can assist it in garnering stability and operational growth as well.
Moreover, it is anticipated from the company that it can deliver efficiency and excellence at
every level as the subordinates and senior authorities upon each other and that are properly
arranged in a chain level (Hungry Jacks, 2018).
Balanced scorecard measure
As previously stated, this method is also known as the performance measurement approach
wherein both non-financial and financial segments of a company are provided equivalent
significance by methods of consideration. Such method can also be considered as a strategic
planning tool that is beneficial for companies to comply with. Furthermore, such approach
can play a key role in framing and structuring a company by allowing it to concentrate on its
targets and objectives that are not attained yet (Hopper & Biu, 2016). Besides, such tool also
allows the senior management of the company to obtain a detailed overview of organizational
performance so that proper decisions can be made in the emergence of severe contingencies.
In addition, this approach is also beneficial in accounting for the customer satisfaction level
and internal framework’s performance so that the performance report of every organizational
strategy can be effectively assessed. Thus, this measure plays a vital role in considering non-
financial segments to assess the organizational financial segments respectively. Moreover, the
reason why this method is also regarded as a performance management tool can be attributed
to the fact that it assists in depicting the overall organizational performance by comparing the
present performance with that of the past years (Lawrie et. al, 2016). However, when it
comes to Hungry Jacks, this approach is not just restricted to operate as a tool of performance
management but it is also extended to the company’s management and strategic planning
systems (Hopper & Biu, 2016). This is the reason why Hungry is now capable of executing
its own strategies and approaches. Overall, the personnel and management of the company
are very clear about the distinction betwixt its strategy and vision. Moreover, this tool plays a
role in binding such vision with the company’s approaches and performance measures.
7

Hungry Jacks
(Rompho, 2011)
 Financial approach
In order to depict the image of the company in the minds or eyes of the stakeholder, the
following points must be kept in mind:
Objectives- The company intends in enhancing its capacity of earnings and increasing is
returns. This can assist it in developing its reputation and goodwill in the entire industry,
thereby facilitating in attaining investments from public. Moreover, true and fair view of the
performance of the company is also needed to be reflected in its financials that can assist
stakeholders in their decision-making processes (Lawrie et. al, 2016). Besides, with
appropriate and legitimate disclosures prevalent in the company’s financials, additional
investments can be facilitated.
Approaches- In relation to the company, it can pursue trust on the part of stakeholders and
stability in its affairs only if it endeavours in making adequate disclosures to them. This can
further assist it in building its goodwill in the entire fast food market.
Targets/goals- The company can attain its goal of pursuing such a brand value in the entire
industry that involves both non-financial and financial segments. Moreover, it must make
ways to score such a position in the market by gaining maximum financial strength, thereby
8

Hungry Jacks
facilitating in attracting enormous number of investors (Larry & Christopher, 2012).
Nevertheless, the company must always ensure that non-financial segments are given due
focus and are not disregarded by adhering to the CSR (corporate social responsibility)
policies.
Initiatives- The directors of the company must make sure that the company requirements are
always given due priority. Therefore, if the policies and procedures of the company are
continuously reviewed and monitored, it can pave a path for its development. Further, it is
required that the board must be more responsible and liable in undertaking strategies and
plans for making sure that the overall organization is progressing towards future
developments and increasing its reputation or goodwill in the entire industry (Lee et. al,
2015).
 Customer measures
In order to depict the company’s image in front of customers, the following must be
accounted for:
Objectives- It is necessary for Hungry to design its services in a way based on customers’
preferences and tastes. In addition, such items must align with the latest trends so that the
company can address a maximum number of consumers (Brown, 2013).
Measures- Hungry must always make sure that the quality of its food items are not
compromised in any scenario as it can assist it in attracting a vast number of customers.
Besides, the company can install its affairs in both underperforming and developed markets
because it is a bigger organization. Thus, accounting for the company’s quality of goods and
services, it can easily attain its objectives (Drury, 2011).
Targets/goals- It is necessary for the company to increase the accessibility of its items and
services to the customers that can address customer expectations and enhance their utility as
well.
Initiatives- The board of the company must ensure that their food items are of high quality
and can serve many customers. Further, the goods supply must always align with that of the
present demand that can assist the company in gaining more profits (Drury, 2011).
 Business processes
In order to excel in business processes, the following must be accounted:
9

Hungry Jacks
Objectives- The company must focus on quality items that must be supported by legitimate
production or manufacture of the same, thereby facilitating in maximum revenues.
Measures- The board must implement a legitimate approach and strategy to attain a
competitive advantage in the entire market. Thus, investment must be the basis of the
company’s development and therefore, must not be discarded (Kong, 2010).
Targets/goals- The company’s board must reflect its items in a manner that its overall
demand gets enhanced and must ensure that supply aligns with that of the demand (Needles
& Powers, 2013).
Initiatives- The board must ensure that all its departments align with other departments so
that all intended targets are attained effectively.
 Growth and learning
The opportunities that can be utilized for gain of knowledge are as follows:
Objectives- Evaluation of outrunning environment and timely changes is crucial for a
company to thrive. Further, new and innovative ideas must be implemented by the company
to attain competitive advantage (Brown, 2013).
Measures- Company changes are vital for companies as it makes them more advanced.
Further, increment in product quality, launching fresh items, etc are crucial for the company
as if satisfies customer requirements (Brown, 2013).
Target/goals- The company’s focus must be product quality and to attain the same, an
effective and strict strategy with overall organizational hard work is necessary.
Suitability of balanced scorecard to client
 Increasing retail growth
It is significant to offer a boost to offline and online retailers so that assets can be effectively
used. Further, market availability is witnessed by channel of distribution and if the item
becomes popular, then company goodwill enhances simultaneously. Overall, the company
has huge fan base as it attains perfect output based on customer wishes and requirements
(Vaitilingam, 2010).
 Increasing under-penetrated market through investments
10

Hungry Jacks
The company can expand its affairs through its distribution channels. Further, an efficient
grab is exerted by it as and when required. Such distribution channel can enhance availability
of new items, thereby increasing the company’s success rate (Kong, 2010). Overall, the
company’s funding has enhanced its assets that has increased its effectiveness rate as well.
Distinction in the measures of balanced scorecard
A company’s most crucial objective must be to handle its entire chances with due care and
responsibility so that future disasters and reputation disruption can be prevented (Chapman
et. al, 2007). Further, utilization of smart asset in this regard is a crucial matter. In addition,
there are few risks that prevail in some transactions that are extremely vulnerable but possess
the best chances of offering what the company intends to attain (Rompho, 2011). Hence, if all
the company’s assets are in place and the reactants are properly ready, then such company
can easily serve others. The approach of balanced scorecard (BSC) plays a vital role for a
company by enhancing its reputation and goodwill in the entire industry.
Traditional measures often believe in the gathering of resources for undertaking tasks
whereas the approach of balanced scorecard facilitates in considering several options.
Moreover, such options are diversified and related to a distinct segment so that the company
can progress towards its objectives easily (Brown, 2013). Nonetheless, the increment in the
rate of performance can also be witnessed through such approach. Further, both non-financial
and financial measures must be paid due focus that can influence the company’s policies on a
whole. This is the primary responsibility of the company’s managers because one approach of
balanced scorecard cannot fulfil the desire of all companies and therefore, it is relevant that
the management executives undertake the same and seek risk-free alternatives wherein
performance rate of the company can be enhanced (Rompho, 2011). Further, it must also be
witnessed that the collected or accumulated information must have the method of enhancing
the performance and the influence that it can possess on the entire company as well.
Overall, the approach of balanced scorecard was framed with the intention that it will assist a
company to oversee its performance as it had the core of a measuring tool. However, it has
been witnessed that such approach is being utilized to put the measures made in perfect
segments so that the reputation and performance of the entire company can be enhanced
(Needles, 2011).
11

Hungry Jacks
Conclusion
Hungry Jacks Ltd has undertaken and adopted the approach of balanced scorecard from a
very long tenure and that is visible from its non-financial and financial segments. Moreover,
it has been undertaking its measures effectively that is evident from its financial outcomes
attained during the years, thereby proving the efficacies on the part of every department of
the company. Further, the formula of balanced scorecard has been properly followed by the
company that has been proved to be a boon for the entire organization. Besides, the steps that
are adopted by the company are concise as they are willing to follow everything through their
balanced scorecard. This sheds light on the fact that every policy adopted by the company are
on effective levels. Overall, it can be said that the company’s reputation has witnessed a
positive diversion from the point it has started adhering to the steps based on such approach.
Nonetheless, the outputs that have been produced by the company and its performance rate
has clearly highlighted that such method is a boon for the entire organization.
12

Hungry Jacks
References
Brown, P. (2013). How can we do better?. Accounting Horizons. 27(4), 855–859. DOI
https://doi.org/10.2308/acch-10365 [Accessed 16 May 2018]
Chapman, C, Hopwood, A & Shields, M. (2007). Handbook of Management Accounting
Research. Oxford, U.K.: Elsevier
Drury, C. (2011). Cost and management accounting. Andover, Hampshire, UK: South
Western Cengage Learning.
Hopper, T & Bui, B. (2016) Has management accounting research been critical?.
Management Accounting Research. [online]. vol. 31, pp. 10-30. Available from:
http://daneshyari.com/article/preview/1002586.pdf [Accessed 20 May 2018]
Hungry Jacks. (2018). Hungry Jack business profile [online]. Available from:
https://www.hungryjacks.com.au/ [Accessed 20 May 2018]
Kong, E. (2010) Analysing BSC and IC's usefulness in non-profit organisations. Journal of
Intellectual Capital. [online]. 11 (3): p. 284–303. DOI:
https://doi.org/10.1108/14691931011064554
Larry M. W & Christopher J. S. (2012) Managerial and Cost Accounting. Pearson Press
Lawrie, G.V., Abdullah, N.A., Bragg, C. and Varlet, G. (2016) Multi-level strategic
alignment within a complex organisation. Journal of Modelling in Management.
[online]. 11 (4): p. 889–910.DOI: doi:10.1108/JM2-11-2014-0085
Lee, J., Park, M., Lee, H.S., Lee, K.P & Hyun, H. (2015). Application of Activity-Based
costing (ABC) for Modular Building Construction Indirect Costs Calculation at the
Manufacturing Stage. Korean Journal of Construction Engineering and
Management, 16(4),139-145
Needles, B. E.& Powers, M. (2013) Principles of Financial Accounting. New York Press
Needles, S. C. (2011) Managerial Accounting. USA: South-Western Cengage Learning .
Parrino, R, Kidwell, D. and Bates, T. (2012) Fundamentals of corporate finance. Hoboken,
Rompho, N. (2011) Why the Balanced Scorecard Fails in SMEs: A Case Study. International
Journal of Business and Management. [online]. 6 (11), p. 39–46. Available from:
http://www.ccsenet.org/journal/index.php/ijbm/article/view/10247 [Accessed 20 May 2018]
13

Hungry Jacks
Vaitilingam, R. (2010) The Financial Times Guide to Using the Financial Pages, London: FT
Prentice Hall.
14