Question

Designing a balanced scorecard Ace Athletics manufacture s sporting goods that are then sold to re- tailers. It is a very competitive industry where quality and price are important to gain space on retailers' shelves. Ace's strategy is to produce defect-free athletic equipment that can be sold at moderate prices. Required: Prepare a balanced scorecard, without numbers, for Ace Athletics that will help them to achieve their strategy and to maximize long-term shareholder value

Answer 1

A balanced scorecard displays organisations performance into four dimensions after taking into account both long term and short term goal These four dimensions or perspectives are 1 Financial Perspective 2 Customer Perspective 3 Internal Business Perspective 4 Learning and Growth Perspective Ace Athletics manufactures sporting goods to sell it to retailers in a very competitive market Following is the balanced scorecard (without numbers) for Ace Athletics to help them achieve their strategy and to maximise their long term wealth 1 Operating expenses incurred are justifiable against budgeted numbers 2 We are able to increase cash flows on a year on year basis 3 Revenues are increasing stomer Perspective 1 Turnover rate amongst retailers 2 Satisfaction of product amongst buyers 3 On time delivery of products Internal Business Perspective 1 Complaints of employees 2 Improvement in after sales support Learning and Growth Persp 1 Number of staff participating in training courses 2 Organisational procedures for motivation and empowerment