>> Financial Accounting
Question: Developing a Balanced Scorecard
You will now develop a BSC for Anthony's Orchard. The company has a number of strategic goals; measuring performance towards those goals will be critical to its sustained success.
To prepare for this Individual Assignment:
Visit the Anthony's Orchard case study in the unit resources. Review again the current and historical financials. Consider that one of the company's key goals in its strategic plan is to exceed revenue of $25 million dollars by the year 2015.
To complete this Individual Assignment:
Explain the potential value of a BSC to Anthony's Orchard. Describe specific ways that the introduction of a BSC can contribute to this organisation.
Develop a BSC that is aligned to the key goal in the strategic plan, i.e. exceeding revenue of $25 million dollars by 2015. Develop, quantify and justify suitable key performance measurement criteria for Anthony's Orchard in each of these four key areas:
Internal Business Processes
Learning and Growth
You should fully state and justify any assumptions that you make in relation to the financial measurements you use. You should also make suitable use of appendices to include relevant financial performance measurement information you include. Be sure to include all references as well.
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The Balanced Scorecard identifies internal as well as external factors which would help an organization maintain a sustainable growth rate. The Balanced Scorecard measure of an entity would always strive to provide the concerned management about the widest and comprehensive measurement of the way the business is done.
And thus it serves as a tool to improve the concerned operations. The BSC methodology uses both financial and non-financial measures to understand the business processes and thus helps to strategies further in the achievement of goals. But as believed by a few it’s not a replacement strategy for financial records(DeBusk, 2006).
No it is not true. Balanced scorecard would never replace the actual financial statements. And it is not exactly theoretical either.