Analysis paper on Phillips Electronic Balance Scorecard
What is a Balance Scorecard? A Balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It was originated by Drs. Robert Kaplan Harvard Business School and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance (Balance Scorecard Institute, 2013). This paper will analyze the Balance Scorecard at Phillip Electronics; it will discuss the rationale and issues surrounding the development and implementation of a Balance Scorecard. The paper will also discuss the advantages and disadvantage of Phillips Electronics Balance Scorecard (BSC).
Philips Electronics has implemented a scorecard system to align company views, to focus employees on how they fit into the organization, and also to educate employees on what drives the business. The company management uses the scorecard as a guide at quarterly business reviews worldwide to...
...for their company the implement a strategic plan which allows them to understand if they are in the market to grow. The organization by the name World Wide Connection has decided to expand globally and offer services they currently offer within the United States in other countries. The writer has analyzed the mission, value and vision statement of this organization along with the SWOTT analysis to foresee whether this strategic plan which is being implemented is going to succeed. The writer has analyzed and produced numbers which help understand all of the following factors financial, customer, process, learning and growth for this organization. These key characteristics are considered the framework for the balanced scorecard. The balance scorecard is the analysis of the cause and effect of business processes needed to successfully implement business strategy, with built-in measurements to track progress.
At World Wide Connection the financial characteristic will allow the organization understand the revenue and cost, profitability and competitive position which are involved through the strategic plan waiting to be implemented. The writer analyzed the prior documents allowing him to see the organization’s revenues and costs are at 6% deficit on their current assets. The revenues which have been accumulated by the organization since their start up. Knowing World Wide Connection is investing millions of dollars to expand to other countries...
By Andra Gumbus and Bridget Lyons
It's used to align company vision, focus employees on how they fit into the big picture, and educate them on what drives the business.
When a management tool becomes popular, it’s only logical to question whether it’s a fad or the future. One performance measurement tool—the balanced scorecard (BSC)—has broad appeal. Approximately 50% of Fortune 1,000 companies in North America and about 40% in Europe use a version of the BSC, according to a recent survey by Bain & Co. The number of software and consulting firms currently providing BSC-related products and services supports these statistics. But do companies think the BSC is here to stay? Philips Electronics does. This worldwide conglomerate has gathered its more than 250,000 employees in 150 countries around the card because it sees this tool as the future—not a trendy tool. The key benefit for Philips: Management can streamline the complicated process of running a complex international company with diverse product lines and divisions. Here’s how it cascades throughout the organization.
The drive to implement the balanced scorecard at Philips Electronics came from the top down—as a directive from the Board of Management in Europe to all Philips divisions and companies worldwide. The directive went to each of the companies and their quality departments, with the effort in the...
...met, with a healthy top and bottom line.
"Managers who learn methods of the patient management scorecard are in a better position to lead"
- Rupak Barua
Chief Operating Officer
Calcutta Medical Research Institute (CMRI), Kolkata |
"Managers who learn methods of the patient management scorecard are in a better position to lead in future. They have the ability to think, plan and assess the success of their hospital," explains Rupak Barua, Chief Operating Officer, Calcutta Medical Research Institute (CMRI), Kolkata. CMRI has been using BSC for the past couple of years.
"Before adopting BSC, the operations at our hospital were far from oriented. Embracing BSC has meant a straight 33 per cent improvement in our top line," says T Karunakar, General Manager-HR, Apollo Hospital, Hyderabad, which adopted BSC four years back.
"Balanced Scorecard increases organisational alignment"
- Dr SK Biswas
management consultant |
What makes BSC accountable is that at the end of the implementation, a scorecard is prepared, which is similar to a report card and points are given to each department based on performance. "The report cards include a 'balance' of leading (performance drivers) indicators and lagging (outcome) indicators. It ensures that the leading indicators support the lagging ones on the scorecard," explains Dr SK Biswas, Kolkata-based healthcare...
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COST ACCOUNTING PROJECT | Group-6
• Basic Concepts • Balanced Scorecard for Performance Measurement • Perspectives o Learning & Growth Perspective o Business Process Perspective o Customer Perspective o Financial Perspective • Cause-and-Effect Logic • How many companies use the Balanced Scorecard? • What are the Key Benefits of using Balanced Scorecards? • Government and Not-for-Profit Balanced Scorecards • Conclusion
Cost Accounting Project
Accountants communicate with financial statements. Engineers communicate with as built drawings. Architects communicate with physical models. It seems that almost every profession has some means of communicating clearly to the end user. However, for people engaged in strategic planning there has been an on-going dilemma. The finished product, the strategic plan, has not communicated and reached the end user. Sure strategic plans are nice to look at, full of bar charts, nice covers, well written, and professionally prepared; but they simply have not impacted the people who must execute the strategic plan. The end result has been poor execution of the strategic plan throughout the entire organization. And the sad fact of the matter is that execution of the strategic plan is everybody’s business, not just upper level management. Upper level...
The wake of the 21st century brings with it more challenges than the long awaited relief amidst the corporate world. Even with the improvement and introduction of cutting edge technology, management issues still remain a hassle even with the best tools and the best brains in the trade. Problems and issues pertaining to management are very sensitive especially when it comes to managing a company’s finances. The waxing and waning of the world economy makes this process even harder as more and more companies are forced to hire the services of skilled analysts at high cost all the while speculating the outcomes of the economy. However, with the right tools information and skills, a company is guaranteed to stay afloat in a world where businesses keep dropping out of the corporate world. How companies manage their finances and workforce dictates whether the company is bound to open its doors come the next financial year.
One of the major concerns in management is the management of accounts which is usually handled a company’s accountants in conjunction with the management of the company. Managementaccounting specifically deals with generating information pertaining to a given company and basically relates on how to minimize costs while improving sales and boosting profits within the available company’s resources. In short this is...
...x .30 = $8,400.
2.Yes. Although this amount is below the $82,500 full-cost price, the order is still profitable. Heartland can afford to pick up some additional business, because the company is operating at 75 percent of practical capacity.
Sales revenue $63,500 Less: Sales commissions (10%) 6,350 $57,150
Less manufacturing costs: Direct material $14,600 Direct labor 28,000 Variable manufacturing overhead 8,400 Total manufacturing costs…………………… 51,000
Income before taxes $ 6,150
Income taxes (40%) 2,460
Net income $ 3,690
Note that the fixed manufacturing overhead and fixed corporate administration costs are not relevant in this decision, because these amounts will remain the same regardless of what Heartland’s management decides about the order.
3.The break-even price is $56,667, computed as follows:
Let P = break-even bid price
P – 0.1P - $51,000 = 0
0.9P = $51,000
P = $56,667 (rounded)
Income taxes can be ignored, because there is no tax at the break-even point.
4.Profits will probably decline. Heartland originally used a full-cost pricing formula to derive a $82,500 bid price. A drop in the selling price to $63,500 signifies that the firm is now pricing its orders at less than full cost, which would decrease profitability.
Reduced prices could lead to an increase in income if the company were able to generate additional volume. This situation will not occur here, because the problem states that Heartland...