Business Performance: Balanced Scorecard Analysis Report

This report provides an in-depth analysis of the Balanced Scorecard, a strategic management system used to measure organizational performance. It examines the four key perspectives: learning and growth, internal business processes, customer, and financial. The report details how each perspective contributes to a balanced view of the firm, offering insights into strategic objectives and performance measurement. It explores how the Balanced Scorecard can be used to break down complex organizational visions into actionable steps, considering stakeholder interests. Furthermore, the report highlights the interconnectedness of the four perspectives, demonstrating how improvements in one area can positively impact others. The report uses Wonder Mountain Ltd as a case study to illustrate the practical application of the Balanced Scorecard, analyzing how the company can achieve competitive advantage and enhance customer satisfaction through various initiatives, including educational opportunities for employees and customers. The importance of financial measures, such as dividends and share price, are also discussed.

Question One
Balanced Scorecard
This is a system of measuring performance of an organization. It assists in examining the
organization, and looking at its strategic goals. It is also help in choosing the right direction to
follow in order to attain set goal. Traditionally, firm's performance was gauged in accordance to
how much the money they made. But later on, it was realized beyond doubt that even though
financial measures are important, they give just but part of the picture. They usually give a
short term picture, and performance measurement is meant to make an organization stand the
test over time.
Balanced Scorecard comes with an idea of considering the strategic perspectives, and
traditional financial measures for measuring performance of an organization. Due to this
tendency of focusing constitute both high-level strategy and low level strategy; this method of
performance measurement has been set apart from other performance measurement
methodologies. It usually takes a big and complicated vision of an organization and breaks it
down to simple specific actions that ought to be undertaken in daily basis to achieve set goals
and objective of the firm in consideration of stakeholders' interest.
In preparation of balanced Scorecard card, one need to put in mind that it consist of; four
perspectives, strategic objectives for each perspective which acts as benchmark, strategic map
which is a chat showing the relationship between the strategic objectives and measures of
which each strategic objective should have one or two measures.
Balanced Scorecard focuses an organization in four perspectives, each perspective focusing on
different side of an organization thus providing a balanced view of the firm while conducting
the measure of its health, (Niven, 2011)
They include:
Learning and Learning perspective which focuses on the organization’s culture in relation to
changing market environments. It checks whether the firm is aware of the latest industrial

trends or it is fixed to the cocoon of their bureaucratic mode of leadership and culture. It also
answers the question whether the employees are able to access the training and continuous
educational opportunities. As it all known that technology is crucial aspect in growth and
learning, this perspective tries to gauge whether the firm is able to use latest devices and
software or it is just stacked to the old way of doing thing. This perspective tries to evaluate
what the firm is doing to stay ahead of the competition in the market.
In order to achieve that, Wonder Mountain Ltd is providing high quality family entertainment
that is beyond customers' expectations. This will give the firm a competitive advantage and be
able to be ahead of the competition in the market. The firm is also offering educational
opportunities to the employees and customers to equip them with new ways of doing things
thus adopting the current technology in the market.
The second perspective of balanced scored card is Internal Business process. This usually
focuses on how smooth the business is running. In this case, the firm is examined how right is
doing its operations, is it avoiding abnormal wastage through proper utilization of resources
both, row materials, time, machines, human resources and so forth. It also focuses on the how
easily the firm can incorporate and adapt to new changing conditions of the business. It enables
one to step back and check whether the firm is providing what customers need, (Kaplan,
Norton & Rugelsjoen, 2010).
In this perspective, the performance measurement is to be done on the quality of recreation
services that is provided and to ensure that is what the customers can delight on. This can be
realized by comments from customers and reduction in customer’s complaints. Also this can be
quantified by the number of customers served by unit time. Are customers taking a longer time
in queue waiting to be served?
The third perspective of balanced scorecard is Customer. In this case, the focus is the people
who usually buy the products of a company. The most indicator of company success in this
perspective is Customers satisfaction. This is attained by how an entity is attracting new
customers to the business and retaining the existing one. Also how customers view the business
in relation to the other competitive businesses.

The progress of Wonder Mountain Ltd can be measured by the new customers joining the firm
over a unit time and recommendations given by the existing customers about the product. The
community outreach programs are made to attract new customers, this show success in the
customer’s perspective if only the efforts bore fruits. The educational facilities that are offered
voluntarily are made to entice the customers and make them remain loyal to the business.
Reduction of customers quitting the firm product would portray the success of the business.
The fourth and the last perspective of balanced Scorecard is financial perspective. This is the
traditional measure of measuring performance of an organization however it cannot be
overlooked since finance keeps an organization alive. Things to be taken into consideration here
is whether the shareholders are happy of the progress of the business through the returns they
get in form of dividends and capital gain. The higher the dividends the company gives out to the
shareholders the higher the progress of the business and also that applies to capital gain,
(Kaplan Norton & Rugelsjoen 2010).
Wonders Mountain Ltd need to set the standard of dividends payment and see whether it is
able to pay the same to the shareholders. Also they need to set target of share price so that
they will not comprise the long term objective of the organization which is wealth through
giving high dividends to the shareholders which is a short term objective. If both dividends and
share price targets are attained, that is an indication of company success.
Also the firm should check on the amount of profit gotten through the operation of the firm.
High profit portrays success while if the firm is making looses, it shows deterioration of the firm
economically. This can be attained through minimizing the cost of operations by sophisticated
processes which is captured in Internal business processes which enables elimination of
unwanted cost of operations.
Stacking the perspective
Unless in early years whereby the four perspectives of balanced Scorecard was viewed as
independent to each other, recently the people have discovered that the four perspectives
affects each other. For instance, through leaning and growth perspective, employees are

trained news ways of doing things to cope with changing business environment and thus
leading to efficiency in undertaking internal business process. Proper internal business ensures
that customers are satisfied through providing what they need in terms of quality, quantity and
I'm time (customer perspective). Delighted customers will in turn buy more of the business
products that increasing the company's finance (Financial perspective) which enable to pay
shareholders high dividends and retain profit for share growth, (Kaplan & Norton 2007)

References
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Kaplan, R. S., Norton, D. P., & Rugelsjoen, B. (2010). Managing alliances with the balanced
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