TASK:

Keendy brew is a special soft drinks manufacturing company, the product range includes root beer and other flavors.The company's vision is "To proudly produceand sell extraordinarily fresh, healthy and delicious soft drinks to satisfy kids of allages." The company has a reputation for high quality and unique flavor, enabling it to sell soft drinks at a premium price to gourmet grocery stores in the Brisbane region.The company's managersexpect to expand the business to other geographic regions, and maintain its product quality with the sustainable development of the company. They have decided to implement a balanced scorecard, and expect to implement the following balanced scorecard measures:

Financial Perspective

1. Analysis of manufacturing cost per case: ingredients, direct labor, packaging materials, and overhead
2. Operating profit per case
3. Return on investment

Customer Perspective

1. Number of customer complaints relating to taste, freshness, package integrity, appearance, and foreign objects
2. Quality index (an internal measure of manufacturing quality, including microbiology and chemistry)
3. Percentage sales growth

Internal Business Process Perspective

1. Ratio of plant production hours to total available time
2. Throughput (number of cases packaged)
3. Waste and scrap as a percent of total production cost

Learning and Growth Perspective

1. Number of work-related injuries
2. Number of training hours per employee
3. Number of community volunteer hours per employee

REQUIRED

The managers of the Keendy brew expect your evaluation for the proposed balanced scorecard. Therefore, you are required to formulate a report to the managers presenting your evaluation regarding;

1. the proposed balanced scorecard design, and
2. whether they should adopt a balanced scorecard

The following questions will help you to structure your report

1. the proposed balanced scorecard design.

(a)Describe the organisation's vision and strategy

(b) For the balanced scorecard perspective:

• Describe the strengths and weaknesses of the measures chosen for each
• perspective
• Reach a conclusion about the reasonableness of the set of balanced
• scorecard measures for that perspective (analyze the rationale and the linkages of the performance measures). You can draw a strategy map to support your argument.

(c) What are the pros and cons of implementing a balanced scorecard?

(d) How the balanced scorecard is more valuable for the managers of the Keendy Brew to meet its vision? Explain.

Hi there,

I hope this finds you well. I'm doing this business report for Strategic management and unfortunately, I'm stuck on part 1(d).

This is what I have so far:

With the given benefits for management above, we now want to broaden our perspective and talk about your specific benefits. Often balanced scorecards are only seen as a tool for management rather than a tool for measurement. It definitely is a strategic management tool that categorizes the performance of Keendy Brew into the four dimensions: Financial data, Customer perspective, business processes and learning and growth. This collected data will help you prioritize and gauge your strategic vision and strategy as well as translate it into specific measures.

MY QUESTION: I am stuck. I don't know how 1(d) is different from 1(c). I know that I have to talk about value-adding benefits for management. But what could that be? Can you explain to me how I link the theory to practise with this case study?

Thanks a lot for your help in advance! :)