Business Plan: Strategic Business Plan Balanced Scorecard

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Strategic Business Plan Score-Card

Organizations are being formed with a major aim in mind which is to increase the company's surplus and mitigate the unnecessary expenses. The term organization means a place where people relate to different geographic and mentality exists. According to the management officials of the organizations the stance of communication is very important and it has to be for the long run of an organization. The management of the organizations always takes such steps which strengthens the organization's operation.

Organizations use different tools to analyze organization strategic functions. From past few decades the balanced score care approach is been widely used because of its propensity to find the loopholes of the organization. The concept of balance score approach is manifold and analyzes the organizational functions from different slants.

The main perspective of this study has also based on the balance score card approach as we have to analyze an organization strategically by considering the balance score card approach. The organization which has been chosen to complete this report is Big Dogs, a newly launched big breed dog company. The researcher has adopted a up-to-date (SBS) approach to complete this assignment to make it understandable and effective. In the first step, the researcher will try to define the core concept of the balance score card (BSC) approach and its major components and then shift the gears towards the main theme of this paper. Let's start the same with a precise and catchy concept of BSC approach.

Balance Score Card Approach: An Outlook

Basically Balance Score Card (hereafter BSC) is a system of strategic planning and management extensively uses within the premises of the organizations, multinational companies, government and non-profit organizations to improve the essence of internal and external communication (Balance Score Card Basics, 2001). Basically BSC use to match the performance of the organization against the organization's own strategic goals.

Source: www.Balancescorecard.org

BSC is a mixture of financial and non-financial metrics and indicators uses to identify the loopholes of the organization. In the early years the BSC was only used to assess the performance of an organization against the performance of the peer companies, but with the passage of time the sophistication and usage also got immense enhancement. The tool which previously only used to compare the performance of the companies is now also used in making strategic plans of the organizations. The balanced scorecard retains traditional financial measures. Nevertheless financial measures tell the story of past events, an adequate story for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and customer relationships were not critical for success. These financial measures are inadequate, however, for industrial age companies for which investments in long-term capabilities and innovation. The four quadrants of the BSC are Shareholder value or financial perspective, Process or Internal operations perspective, learning and growth perspective and customer value perspective. We will analyze all the four quadrants systematically and under relevant headings.

Shareholder Value or Financial Perspective

Increase the shareholder's wealth is the primary focus of an organization that is why the organizations allocate the funds of their shareholders in a way from where the probability to get higher return is bright. The first three years of our business is quite crucial because we will get an idea regarding the financial movement of our entity (Perspectives of Balance Score Card, 2001).

It is obvious that sufficient amount of financing has required by us to start up the business in a plausible manner. Basically the company has three choices to finance its operations, which predominantly are issuance of shares, putting owner's capital and granting a loan from the bank. The next big thing after the financing is the revenue recognition and last but not the least increment in the market value of the shares of the company.

We have jotted down three strategies to strengthen the financial perspective of the company which are mentioned below,

1) the first strategy is to increase the financial capital of the organization. According to my analysis, issuance of shares is best medium available for the organization to enhance the financial capital of the organization necessary for the day-to-day operations of the company. Issuance of shares has definitely an added advantage over the other mediums, because the organizational officials don't have to pay large amount on the name of interest and other obligations.

2) the second strategy which we will choose is to increase the revenue… [END OF PREVIEW]

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