Mini Case Study:Balanced Scorecards to guide strategy during a time of crisis (5 marks)

"The retail sector needs to be prepared for the two ecommerce waves that are coming so their businesses can survive the coronavirus challenges and be ready for revival on the other side."(KPMG, 2020)

This direct quote serves as a stark reminder that store-based retailers in Australia, as elsewhere, are in fight for their survival. KPMG reports that although online retail penetration in Australia is behind other parts of the world, most categories of retail will experience a sharp acceleration of online sales as a result of COVID-19. They expect a sharp increase in online 'specials' offered by retailers to clear inventory surpluses.

As a result of the COVID-19 pandemic, retail managers are confronted by a dual demand to grow their online retail offerings, whilst reducing the costs associated with unprofitable stores. The change in strategy is critical and urgent (Badenhorst, 2020). The change in strategic direction with resulting cost saving measures impacts greatly on employment and the wellbeing of communities store-based retailers operate from. It is an open question if retailers have a social obligation to save jobs and/or protect the wellbeing of communities when they close stores.

Balanced Scorecards are used to develop, measure, and communicate financial, social, and environmental organizational strategies (Horngren et al., 2017, pp. 683 - 688).The balanced scorecard considers both financial and non-financial measures, can relate those measures to time, and show how these measures inter-relate. It plays avital role in evaluating performance. Managers can use the measures across the four perspectives of the balanced scorecard to modify plans and decisions, thus achieving organizational goals(Horngren, 2017, p. 731).However, criticism has been levied at scorecards as not being the most suitable management tool in a time of crises.

You are required:

In your established teams, research an Australian retailer currently experiencing the crisis described in the case study.

1. From reputable media sources, identify and evaluate the strategic actions your Australian retailer has proposed to respond to the crises. Prepare one (1) page balanced scored card for your selected retailer, including measurable targets relating to the strategic actions identified in above. Follow the suggestions to develop an effective scorecard, and format, from Horngren et al. (2017), i.e. 4 dimensions and 2 measures per dimension. Include at least one (1) measure relating to a social obligation. Reference your source(s)

2. In a brief note to the scorecard, with an appropriate reference(s) relating to your chosen retailer, address criticism commonly levied against the use of the balanced scorecards.

3. Provide a statement of contribution of the group members who have contributed and the role they played. Reflect on the effectiveness of the team effort.

References:

Horngren, C., Datar, S., Rajan, M., Maguire, W., Tan, R.(2017). Horngren's Cost Accounting: A Managerial Emphasis eBook, 3rd Edition. [[VitalSource Bookshelf version]].

Badenhorst, M. (2020). Retrieved form: https://www.linkedin.com/pulse/covid-19-impact-assessment-using-balanced-scorecard-badenhorst?articleId=6657928808412270592

KPMG. (2020). Retrieved from https://home.kpmg/au/en/home/insights/2020/04/coronavirus-covid-19-retail-survival-and-revival.html