project 1

The learning and growth perspective assess a firm’s ability to remain innovative and maintain a competitive advantage in the ever changing business environment (Balanced Scorecard Basics, n.d.). When formulating a globalization strategy, it is important to consider this perspective because a firm must be flexible enough to be able to successfully operate globally. This reasoning is based on the view that the global market is characterized by numerous challenges which may limit the performance of a firm. The global market, for example, is characterized by rapid changes in economic, political, and legal environmental factors (Niven, 2010).

According to Arora (2014), the financial component of the balance scorecard assesses the ability of a firm to attract investors who are mainly the shareholders and bankers. Generally, businesses finance their activities through equity and loans. In that regard, a firm must convince its financiers that it has the ability to repay its financiers with a profit in the form of dividends or interest. For the firm under consideration in this paper, financing its global agenda would require it to issue equity or secure loans from banks. Going global means expanded market share and increased profits (Arora, 2014). Therefore, the firm can easily convince its financiers to offer finances on the assurance that the increased market share will lead to increased profits and enhanced ability to pay interest and dividends.

This component of balance score card refers to the quality extent which a firm’s products or services need to be in order to attract and retain customers (Arora, 2014). Given that the company under consideration is executing a global strategy, it has to be wary of the existence of similar products produced by the rivals. As it currently stands, the Chinese market is awash with furniture manufacturing firms. The firms are big and they enjoy economies of scale. To counter competition in the new market, the company must e highly conscious of the quality. It must produce high quality furniture and offer excellent after sales services to gain customer loyalty.

According to Niven (2010), the internal business processes component refers to the extent to which a firm has successfully managed its processes to maximize its overall productivity. The aspect also informs a firm about the courses of action that needs to be taken to maximize customer satisfaction and shareholders’ value (Balanced Scorecard Basics, n.d.). For the company discussed in this paper, effective management is necessary for it to be successful in the Chinese market.

Based on the above analysis, it is evident that the firm needs to consider several factors in order to thrive in the Chinese market. Firstly, it has to consider whether it has access to the financial resources needed to execute the globalization strategy. Executing a global strategy in no doubt requires a substantial amount of money which must be raised from either through issuing equity or obtaining loans (Arora, 2014). For the firm to attract investors, it has to convince them that the strategy will result in enhanced profits. Apart from resources, the company needs to consider its ability to outsmart the rivals. This can only be achieved by identifying gaps in the Chinese market and looking for ways to seal them. The firm must produce valuable and costly to imitate furniture to counter rivalry in the new market. The company must also embark in research and development and remain innovative enough to execute the first-to-market strategy.

Therefore, it could be said that the firm could flourish in the selected market. Although china has many companies operating in the furniture industry, the market is not fully exploited. According to, China is among the countries in the globe with the highest Gross Domestic Product (GDP). Additionally, China has a fast-growing population which implies that it presents an opportunity for foreign firms to thrive in the country. The laws of China also favor foreign investments as evidenced by the high level of Foreign Direct Investment (FDI) in the country. Therefore, the firm in question may compete in the market if only it identifies the gaps in customer satisfaction and strives to seal them.

Arora, M. (2014). Global Strategic Management and its importance.

Balanced Scorecard Basics. (n.d.). Retrieved from http://www.balancedscorecard.org/Resources/About-the-Balanced-Scorecard

Niven, P. R. (2010). Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results. John Wiley and Sons.