Question

Makan Segar Bhd (MSB) is a company engaged in the business collecting agriculture produce from farmers, processing the product and distributing it to the malls. The following is the information related to the company's performance evaluation Target Up to 6% 2015 4% RM220 230 to 240 20 Revenue growth Average selling price per product Industry average selling price (RM) Numbers of malls buying MSB's product Client retention rate Employee retention rate Wastage of raw material Industry average New products launched Average time taken to launch a new product 2016 5.5% RM235 240 to 250 25 50% 77.5% 5% 2.5% 4 3 months 46% 78% 3.5% 3% Increase by 10% Increase by 5% 79% 2.5% 3 months 2 months Required: a) Explain the concept of Balance Scorecard. (9 marks) b) Assess the performance of MSB using the Balance Scorecard. (12 marks) c) Suggest TWO (2) ways to improve the performance measurement system in MSB. (4 marks)

Answer 1

A balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. Balanced scorecards are used to measure and provide feedback to organizations.

The balanced scorecard requires specific measures of what customers get—in terms of time, quality, performance and service, and cost. 2. Internal business perspective. Focus on the core competencies, processes, decisions, and actions that have the greatest impact on customer satisfaction.

Two ways to improve performance measurement system.

Define: Clarify your definition of success and the critical questions or decisions that performance measurement will help inform.
Measure: Collect information, verify and validate it, and track it in the data system.