Phyllis' Philly Steaks, a national fast-food chain, has experienced a number of problems in the past few years, and management is considering the adoption of a balanced scorecard as part of a turnaround effort.Required: A. Briefly explain the concept of a balanced scorecard. What general factors are included in a typical balanced scorecard?B. Independent of your answer in requirement "A," assume that Phyllis' is very concerned about customer satisfaction. List four different (and specific) customer-satisfaction measures that may be appropriate for the firm (and for other fast-food providers).C. Independent of requirement "A," assume that Phyllis' wants to return to former levels of profitability. List several financial measures that would allow management to assess success or failure
with respect to the following goals: (1) pay creditors on a timely basis, (2) keep shareholders happy, and (3) improve profitability over time at stores that have been open at least one year.
What will be an ideal response?
A. A balanced scorecard is a tool that incorporates a variety of different measures in the performance-evaluation process. The measures are critical to a firm's success and are tied to organizational strategy. The goal of a balanced scorecard is to allow improvement in a number of broad-reaching areas rather than permit a manager to improve only a small facet of the business at the expense of others. Typical factors are often divided into four categories: financial, internal operations, customer, and learning and growth?
B. Answers will vary but often include market share, queue time, results of a customer quality survey, number of customer complaints, number of order errors, and number of repeat customers.
C. Pay creditors on a timely basis: stipulated end-of-period cash balance and current ratio.
Shareholder satisfaction: growth in earnings per share, increases in per-share market price of Phyllis' stock, price-earnings ratio.
Profitability improvement: gross margin growth rates, earnings growth rates.
You might also like to view...
Compare and contrast global companies versus small businesses as they relate to these three practices: management teams, operations and products, and technology and R&D.
What will be an ideal response?
Why is the first thing the audience hears in your presentation key to careful planning of the presentation?
A) The audience needs a few minutes to focus on the topic B) The audience will better understand key points to look for in the presentation C) The audience is likely to remember the first things they hear D) The audience is likely to let their minds wander later in the presentation E) The audience will be able to apply their personal goals to the presentation
Businesses are outsourcing fewer tasks in order to focus on their core business
Indicate whether the statement is true or false
Assignable variations in a process are also called natural variations
Indicate whether the statement is true or false