The balanced scorecard can be defined as the system that manage the strategic planning of the organization and assist the management to utilize the internal and external communication process to examine the performance of the firm (Wheelen & Hunger, 2004). This balanced scorecard will assist the beauty line business organization to synchronize all the business activities and action according to the vision and strategy. The main role of balanced scorecard is to provide a dimension of framework through which the organization can follow an impartial perspective for the execution of various objectives such as shareholders value, customer value, internal operations and learning and growth (Sadler & Craig, 2003).
The given balanced scorecard would be supportive for the beauty line organization to evaluate the various metrics and targets according to the strategic mission and vision. This will also help the firm to analyze the performance of the employees and business in the industry (Pierce & Robinson, 2009). In addition, this balanced scorecard will make easy for the firm to execute innovative strategies, so that the firm can strengthen its strengths and utilize environmental opportunities to achieve the mission and vision of the firm (Pienaar & Penzhorn, 2000). The four quadrants of a balanced scorecard are as followed to evaluate the performance of the company (Olve, 2006).
Financial Perspective and Shareholder Values
Customer Value Perspective
Process or Internal Operations Perspective
Learning and Growth (Employee) Perspective
The balanced scorecard for the beauty line organization for the development of various strategic objectives and tactics is as followed:
Balanced Scorecard Category Strategic Objective(s) Measure(s) Metric Target(s)
1st year 2nd year 3rd year
Revenues and costs
To increase the market share between 9-12 percent for the next 3 years
High revenue and low operating cost
Competitive position through Cost leadership
Higher return in invested capital
The key measures are:
Market penetration and Saturation strategies to maintain low cost
Utilization of innovative technologies
Tradeoff between achieving the desired debt-to-equity ratio and relying on internal long-term financing by cash flow.
Generation of new products
Profits per customer
Profit through quality
Profits on total assets
Customer Retention or Turnover