Assume you are the management accountant and Tracey Chen has asked you to help her design a comprehensive performance measurement system for the Foleo Scapps business unit. She has provided you with her observations of the business operations (see Chapter 8), along with the Foleo Groups overarching objectives. Below is an excerpt from the companys latest Annual Report:

The long-term goals of the Foleo Group of businesses revolve around growth, stakeholders and technology and can be summed up in the following 4 dot points:

• We aim to grow each business by at least 8 per cent per annum over the next decade;
• We aim to put our customers needs first to do that we will foster good relationships with them, our suppliers and our employees.
• We aim to use and provide the most up-to-date technology available to ensure our customers receive the best product possible at the lowest price.
• We aim to provide a working environment for our employees that encourages and facilitates a happy and motivated team.
• Hence, objectives for each of the four perspectives of the BCS for the Foleo Scapps business unit.

  • 1. Increase market penetration- To achieve the first goal of atleast 8% per annum business growth in the next decade, the most important strategy would be market penetration. Market penetration do no imply shifting to a new market or creating a new product. But, market penetration refers to the increase the customer base of market share by with the help of already existing products or services. This goal can be achieved by various means depending upon company to company. We can either decrease the price of our products or services to attract more customers away from our rivals, invest in advertisement and marketing to attract the attention of new customers, observe the requirements of potential customers and upgrade the product or service quality according to their requirements etc.

    2. Cherish each customer, supplier and employee- In order to foster a good relationship with the customers, suppliers and employees, we must ensure that every interaction with them is delightful, cordial and above all respectful. Recognition of customers instantly is another way which makes them feel valued. Listening and responding to the needs, complaints and complements of the customers, suppliers and employees is another most important step in building a healthy relationship. Try to give free information, organise special events and loyalty rewards to them as frequently as possible. All these shows an gesture of appreciation and increases communication among customers, suppliers and employees.

    3.Standardize and modernise technology- To ensure the availability of most up-to-date technology to customers, modernisation and standardization of the existing technology has to be made for flexibility and speed. All these efforts must cater to the ever increasing needs of the customers, investors and stakeholders. Most modern technologies today are flexible and fast and can rapidly engage in variety of tasks. All these will help in quick increase in production with less effort required. Use of Articficial Intelligence (AI) will be more helpful in ensuring rapid production. As a result the cost of production will fall, leading to a fall in price of the product. Thus, consumers will recieve the most up-to-date product at the lowest possible price.

    4.Empower team members- To provide a encouraging and happy work environment for the employees, we must empower them in various ways such as-open communication and interactions with the bosses and managers, reward based self-improvement, clearly defined roles and duties, support their independence and efforts, be tolerant to their mistakes, be sensible and listen to their problems etc. Apart from these, another important objective is to offer rewards, benefits, perks and incentives to the employees. Employees usually respond to these incentives , recognition and appreciation. All these will provide positive reinforcement and foster positivity and motivation to the employees.

  • Question: Using your four (4) objectives which are " Increase market penetration, Cherish each customer, supplier and employee, Standardize and modernise technology, Empower team members". Prepare a strategy map that illustrates the cause and effect relationships between them.

  • (HINT: Do not use a generic strategy map from the text ensure yours maps YOUR suggested objectives from part (b); ensure you include arrows to illustrate the cause/effect relationships.)