For Wendy Lewis

Strategy Composition

Strategy Composition: The Balance Scorecard

The Balanced Scorecard is a very important tool for management in the contemporary world today. For the company, the Balanced Scorecard will enable to clearly explain the strategic objectives of the company, especially as they relate to global expansion intentions. The Balanced Scorecard is essentially made up of four perspectives that are all important in ensuring the success of the business (Norton & Kaplan, 2000). These perspectives are explained in the context of Ferrer Furniture as follows;

1. Financial perspective ;

The primary goal of the company is to increase its profits. Hence, this perspective touches on the financial objectives of the company. Moreover, all other objectives of the company are tied, directly or indirectly, to the key goal of earning profits for the company (Norton & Kaplan, 2000). In light of the primary objective of growing profits, the company shall seek to;

i. Cut on its inefficiencies in a bid to save on production costs that are incurred by the company.

ii. Sustainably increase the profit margins of the company.

iii. Ensure a diverse revenue base for the company. This means exploring other potential revenue channels such as through a global expansion strategy.

2. Customer perspective;

This means that Ferrer Furniture should put in efforts that touch on the needs, tastes and preferences of its target customers (Norton & Kaplan, 2000). For the company to realize this, the following shall need to be considered;

i. Increase customer satisfaction levels through for instance; prompt response to customers’ feedback and queries.

ii. Promote the company’s brand equity through increasing brand awareness among the company’s customers.

3. Business Process Perspective

This entails taking into consideration all those processes that shall need to be internally undertaken by the company so as to meet customer expectations and grow the company’s profits (Norton & Kaplan, 2000). They include;

i. Improving the efficiency of internal processes such as streamlining the approval process.

ii. Increasing and maintaining high quality standards of end products of the company.

iii. Leveraging on technology to enhance efficiency within the company

4. Learning and Growth Perspective

For Ferrer Furniture, this perspective entails;

i. Building on the human capital resources of the company through skills training for example.

ii. Establishing an organizational culture and competent leadership that will facilitate continuous and sustainable growth of the company (Norton & Kaplan, 2000).

Company strategies for Global Expansion

A Cooperative Strategy is one of the best additional tools the company can use to build its competitor profile. Entering into a partnership; Partnering up with a local, best-in-class company in the country which the company seeks to establish international operations, may be a good way to hedge against inherent risks in a global expansion program. The local company will also help the company to better understand the local target market (Rothaermel, 2012). This strategic partner may also be an individual; such as a local consultant or attorney.

1. Adopting a clear product strategy; the company needs to first of all ensure that its products are well-defined and offer a leading edge against similar products produced by competitors. In addition, testing this product in the foreign target market will go a long way in facilitating the successful launch of the product (Rothaermel, 2012).

2. Leverage on technology; technology facilitates a cost-effective global expansion. Tis is through video-conferencing and tele-commuting facilities. Also, technology intermediates the company in accessing international talent. Altogether, technology will allow the company overcome geographical barrier challenge.

The Importance of Multiple Global Business Strategies

Having a mix of global expansion strategies is essential for the company. This is because the global expansion process may be overwhelming for the company with a lot of uncertainty and risks involved. Hence, a good mix of various strategies for global expansion will help towards reducing these risks and uncertainties as they pertain to the foreign market (Rothaermel, 2012).

References

Norton, P, D., & Kaplan, S, R. (2000). The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business Press.

Rothaermel, T, F. (2012). Strategic Management: Concepts. McGraw-Hill Education.