Gross profit and operation profit from annual reports
Sales comparisons from previous years Make sure online sales increase Products are accessible to customers through online presence
B&M maintain aspects assured to customers
Increase gross margin Profit and loss reports Cost of sales and turnover grew due to the 34% increase in 2015 (Keynote, 2016) Analysing product prices successful compared to least successful
Increasing prices if required
Return on investment The balance sheet shows revenues increased to 21.88% from 1.351bn to 1.647bn from 2012-15 (Financial Times, 2016) Return on investment remains at balance from 2012-15 return on investment 9.16% (Financial Times, 2016). Reducing costs
Make sure revenues and profits grow
Over the last three years it shows that B&Ms turnover has increased as well as the revenue (Maisel, 1992).
3.3.2 Customer Perspective
Objectives Measures Targets Initiatives
Customer Satisfaction Customer feedback through online questionnaires
feedback cards sent with products to rate service
Customers will need to be given incentives in order to attract them to provide feedback. Increase market share in in-store as well as online market sectors
To gain no complaints from customers Updating customer trends constantly.
Ensure employees are trained with customer service skills
Online presence should function efficiently
Market share and increasing number of customers Customers feedback
Increase in sales volume Increase sales volume
Increase competitive advantage Open new branches in different areas
Product Promotion
Offer Quality products and services
Repeat Customer Customer feedback
Checking customer records Increase customer satisfaction
Increase retention
Develop customer loyalty
Increase product and service quality
Offer products for sale at a lower price
Rate of on-time deliveries Percentage of deliveries on time
Number of customers complaints Increase sales volume
Increase customer satisfaction and loyalty to increase consumption rate of the company products
Kaplan (2010) states the customer satisfaction perspective needs to show positive results for example customer satisfaction, market share, customer conservation and new customer attainment. B&M needs to outline the market targets for existing and potential performance formerly then recognise which customer segment needs to be directed at.
3.3.3 Internal Business Process Perspective
Objectives Measures Targets Initiatives
New-product development time Percentage of employees efficiency
Measure machine production capacity
Actual introduction schedule and plan Improve product development
Improve production capacity Improve employees personal development
Improve machine production capacity
The number of units products per hour and defect rate Measure rate of production
Count number of defects
Increase the production capacity Increase the size of production machine
The number of warranty claims received, average repair time and average wait time Customer complaints
Percentage of warranty claims received Reduce repair rate
Reduce the number of warranty claims Sell products with no defects
Ensure quality throughout the production process
Confirm product quality before sale
B&M has developed strong internal business processes. Its key processes are very efficient to the level that it can provide customer value they are expected of (Maisel, 1992). This company utilizes its assets efficiently and it has also developed good customer relations because it produces products and services which are able to meet customers needs. This company has also developed good relationship with external stakeholders and this increases the company productivity and efficiency.
3.3.4 Learning and Growth Perspective
Objectives Measures Targets Initiatives
Hours of employee training, employee satisfaction and turnover, and number of employee suggestions implemented
Employee appraisal
Performance appraisal
Employee feedback To motivate employees
Increase employee performance Offer additional training to employees
Reward employees according to their performance
Provide incentives to employees
Percentage of employees with access to customer data and percentage of processes with real-time feedback
Interview customers
Obtain employees response concerning customers data To understand customer demands and needs To increase the company market share
Employee turnover rate Employees feedback
Level Work flexibility
Measure employee motivation Increase employee turnover
Customer satisfaction
Increase in production capacity Improve working condition
Use performance based compensation
The improvement of the employees personal development is very important. It increases the performance of the organization through the increase in customer satisfaction, improve the organization processes and also increase employees motivation (Kaplan and Norton, 2000). This can only be achieved when the objectives of learning and growth perspectives have met. Meeting these objectives require measuring the employees performance through performance appraisal and other mechanisms. The results are used to develop strategies such as provision of total reward to motivate employees, create flexible work environment and also provide incentives to increase employees work morale (Norreklit, 2000). These actions have been taken by B&M Company and they ensure that there is low employee turnover.
References
Kaplan, Robert S and Norton, D (2000). The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Boston, MA: Harvard Business School Press
Maisel, L. S. (1992). "Performance measurement: the Balanced Scorecard approach". Journal of Cost Management 6 (2): 4752.
Norreklit, Hanne (2000). "The balance on the balanced scorecard - a critical analysis of some of its assumptions".Management Accounting Research (1): 6588.
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