ip

June 2019

A balanced scorecard is a performance meter used in strategic management of a company to gauge various internal functions of a company and the outcomes, especially the external ones, and provide feedback that is later interpreted by the executive committee and the shareholders before making big decisions that would massively affect the company’s operations, Kaplan & Norton (1992). A balanced scorecard suggests that one should view the organization from four perspectives: the learning and growth perspective, the business process perspective, the customer perspective and the financial perspective according to Kaplan & Norton (1998).

The learning and growth perspective involves the general improvement of the cooperate as well as enhancing continuous training of the employees to reduce chances of brain drain. It involves investing in the employees by hiring tutors and mentors to refuel the employees energies and to enable them focus on the mission and the vision of the corporate organization. In addition to that, it involves enhancing the paths of communication between various levels of employees so that emerging problems are efficiently solved. Kaplan, says that learning and growth are the most essential constitutes for success of any employee holding organization according to Kaplan & Norton (1996).

The business process perspective brings the insight of focusing on the original largest picture of the business, that is the sole reason it was started to fulfill without regard to the technology implemented in regard to Kaplan & Norton (1992). It also involves documentation of each employee’s role and how it relates to the large picture of the business according to Kaplan & Norton (1992). It also involves the institutionalization of processes that will move the business forward as well as the timely and efficient input of the managerial body in times of challenges as well as a deep understanding of the employees on what the business should do for it to succeed.

The customer perspective helps the businesses focus on the targeted market in a bigger way to develop new strategies that maximize consumer utility consequently maximizing the financial reward in regard to Priem (2007). This motivates the business to produce goods that will satisfactorily fulfill the needs of the consumer to increase profitability, retain the consumers and attract more customers to purchase the product. The financial perspective helps the business know the impression it wants to create to the shareholders in terms of dividend payout ratio .The business foresees the consequences of its financial actions and focus making profits so that the share holders’ investments can be worthwhile in regard to Ledgerwood (1998)

Another strategy that would be part of a company’s strategic framework for global expansion is establishing a strong, experienced and self-motivated and very dedicated team of executives. This will allow the company begin on an upper trajectory with a clear vision and validated assumptions instead of quickly building the starting team from scratch. Secondly, the company should prepare for product readiness by ensuring there will be compliance of the product with the existing government laws and regulations, judging whether localization of the product is needed, and initiating the product’s assurance based on the local standards. Luo, (1999).

It is important to combine different strategies when pursuing global expansion since there are a lot of risks and uncertainties in the market so one may not have full confidence in the chosen strategies. In case a single strategy is depended on, the company may suffer huge losses in the highly competitive global market. Secondly, having many strategies will secure the company from being kicked out of the market when one strategy fails. The other strategies act as backups so that the company remains in the market o gain high profits. Luo (1999)

References

Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard: measures that drive performance.

Kaplan, R. S., & Norton, D. P. (1998). Putting the balanced scorecard to work. The economic impact of knowledge, 71(5).

Kaplan, R. S., Robert, N. P. D. K. S., Davenport, T. H., Kaplan, R. S., & Norton, D. P. (2001). The strategy-focused organization: How balanced scorecard companies thrive in the new business environment. Harvard Business Press.

Kaplan, R. S., & Norton, D. P. (1996). Linking the balanced scorecard to strategy. California management review.

Priem, R. L. (2007.A consumer perspective on value creation. Academy of Management Review, 32(1), 219-235.

Ledgerwood, J. (1998). Microfinance handbook: An institutional and financial perspective. The World Bank.

Luo, Y. (1999). Entry and cooperative strategies in international business expansion. Greenwood Publishing Group.. Entry and cooperative strategies in international business expansion. Greenwood Publishing Group.