Strategic Plan - Part III: Balanced Scorecard

[Name of the Institute]

[Name of the Instructor]

Table of Contents

Introduction3

Strategic Objectives in Balanced Scorecard format3

Description of Strategic Objectives4

Financial Perspective4

Market Share4

Profitability4

Competitive Positioning4

Customers Perspective5

Customer Retention5

Customer Satisfaction5

Customer Value6

Internal Process Perspective.6

Process Performance6

Productivity Improvement7

Operation Metrics7

Learning and Growth Perspective7

Employee Satisfaction7

Organizations Capabilities8

Technological Innovation8

References9

Strategic Plan - Part III: Balanced Scorecard

Introduction

Strategic objectives are derived to make organization achieve its desired future goals and objectives (Ahn, H. 2001). This part III principally comprised of three strategic objectives for the business, devised upon four fractions of balanced scorecards.

Strategic Objectives in Balanced Scorecard format

Description of Strategic Objectives

Financial Perspective

Market Share

The first strategic objective is concerning the market share. Since the American food and restaurant industry has got stagnant, therefore, the principal objective is to expand the restaurant business to global extent, to capture significant market share. However, the metric to measure the market share would be the simple additive mathematical system. Target of the metric is to add 3 franchises of the restaurant each year. Therefore in 10 years, the restaurant will have 30 franchises across the globe.

Profitability

In such an inactive market, profitability is the biggest matter of concern of stakeholders, therefore, the strategic objective for profitability is to increase the net profit every annually by 1.5 of the previous year. The metric used to measure the profitability would be percentage system. The target is to increase profit by 1.5% every year. For Example, if the first year annual net profit of the venture would be $2 million, then by next year, the net profit should be of $3 million. However, in 5th year of the venture, the net profit would be of $10.125 million.

Competitive Positioning

Leading in competition is always the biggest dream of every business enterprise. The strategic objective about competitive positioning is to achieve sustainable position among the top market shareholders of the food and restaurant industry. The metric to measure this target is simple ranking chart. The target of this metric is to see the project standing among top ten restaurants of the country in next three years, whereas, in next ten year, the project is expected to be among top three food and restaurants ventures of the country.

Customers Perspective

Customer Retention

Customer retention is actions that particular business enterprise takes to increase customer loyalty. The first strategic objective from customers' perspective is to increase customer retention so that in the by next year onwards, the sales will increase to 1.5% of the previous years. This will statistically demonstrate that every year, 0.5% customers are increasing in the count of the previous number of customers, and this is derived from the 0.5% increase in sales, every year. The metric to measure customer retention is percentage. It is expected that 0.5% increase in sales in proportional to 0.5% increase in customers' number. It will illustrate that the company has maintained customer retention effectively, and the number of loyal customers is increasing.

Customer Satisfaction

Satisfaction is an intrinsic value, and one cannot measure its extent into statistical metrics. However, businesses do keep objectives to fulfill customers' satisfaction. The strategic objective of ...