Kaplan and Norton’s Balanced Scorecard provide four perspectives that assist in creating vision and strategy as follows:
Finance – Observes high level financial objectives and measures and asks how does a company look to its shareholders?
Customer – Focuses on customer satisfaction and asks how do customers view a company?
Internal Processes – Focuses on how well the company is run and if a company is providing what the customers want, or answers the question, what should a company be best at doing?
Knowledge & Growth – Evaluates people and their skills, training, leadership, and knowledge. It answers the question, how can we improve and create value? These perspectives help map a company’s vision and strategy, and should assist in the development …show more content…
From a financial perspective, it appeared that a company which had been in existence since 1948 with a clearly defined market presence in the United States and internationally was performing well. It purchased the New York based FAO Schwartz in 2006, however, in 2015 the company closed the New York City retail landmark store, citing rising retail overhead operating costs, but still carrying FAO labeled products. Right now, it is currently trying to manage $5 billion in debt in order to meet its operating costs for the upcoming holiday season. From a customer perspective, the company has probably done everything possible to provide its market share of goods based on its specific retail and internet based sales efforts. However, saturating the market with too many of its specific brand name retail stores, combined with less than stellar performance in its internet based toys sales and large lawsuit with online supplier giant Amazon, did not aid Toys ‘R’ US with sustaining consumer confidence over the last ten to fifteen years. In assessing the company’s internal processes and knowledge and growth perspectives, it could easily be argued that the performance for both have been incorporated into the first two perspectives entirely based on the reality that the company is currently in a Chapter 11 bankruptcy filing status. Maybe, that is too simple of an analysis on the final two perspectives of the balanced scorecard as it applies to Toys ‘R’ US. In my opinion, the company could improve its overall strategic objective by refining or limiting the objectives that it may be trying to accomplish. For example, one recommendation based on the financial perspective may be for Toys ‘R’ US to create a sustainable a
Finance – Observes high level financial objectives and measures and asks how does a company look to its shareholders?
Customer – Focuses on customer satisfaction and asks how do customers view a company?
Internal Processes – Focuses on how well the company is run and if a company is providing what the customers want, or answers the question, what should a company be best at doing?
Knowledge & Growth – Evaluates people and their skills, training, leadership, and knowledge. It answers the question, how can we improve and create value? These perspectives help map a company’s vision and strategy, and should assist in the development …show more content…
From a financial perspective, it appeared that a company which had been in existence since 1948 with a clearly defined market presence in the United States and internationally was performing well. It purchased the New York based FAO Schwartz in 2006, however, in 2015 the company closed the New York City retail landmark store, citing rising retail overhead operating costs, but still carrying FAO labeled products. Right now, it is currently trying to manage $5 billion in debt in order to meet its operating costs for the upcoming holiday season. From a customer perspective, the company has probably done everything possible to provide its market share of goods based on its specific retail and internet based sales efforts. However, saturating the market with too many of its specific brand name retail stores, combined with less than stellar performance in its internet based toys sales and large lawsuit with online supplier giant Amazon, did not aid Toys ‘R’ US with sustaining consumer confidence over the last ten to fifteen years. In assessing the company’s internal processes and knowledge and growth perspectives, it could easily be argued that the performance for both have been incorporated into the first two perspectives entirely based on the reality that the company is currently in a Chapter 11 bankruptcy filing status. Maybe, that is too simple of an analysis on the final two perspectives of the balanced scorecard as it applies to Toys ‘R’ US. In my opinion, the company could improve its overall strategic objective by refining or limiting the objectives that it may be trying to accomplish. For example, one recommendation based on the financial perspective may be for Toys ‘R’ US to create a sustainable a