Running head: BALANCED SCORECARD 7 Running Head: BALANCED SCORECARD Ã¯Â¿Â½ PAGE \* MERGEFORMAT Ã¯Â¿Â½1Ã¯Â¿Â½
BUS/475: Integrated Business Topics
January 25, 2010
Creating mission and vision statements are the initial steps of strategic management, "the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives" (Pearce & Robinson, 2009, p. 3). Establishing what the business is and where it wants to go leads to the development of strategic objectives that identify "what must be done to realize the vision and mission of a business" (University of Phoenix, 2009, para. 2). Knowing what must be done is not enough; a set of specific actions and measures are needed. "A balanced scorecard is the tool that can identify what must be measured, what the specific measures are, and what specific targets are needed" (University of Phoenix, 2009, para.
2). The balanced scorecard is "a strategic approach and performance management system that enables organizations to translate a company's vision and strategy into implementation, working from 4 perspectives: (a) financial perspective, (b) customer perspective, (c) business process perspective, and (d) learning and growth perspective" (Value Based Management, 2009, para. 1).
Strategic objectives and a balanced scorecard (appendix A) were developed by taking into consideration the company mission statement, vision statement, values, and the outcomes of the SWOTT (strengths, weaknesses, opportunities, threats, and trends) analysis for My First Teeth Keepsakes.
The strategic objectives for the financial perspective are:
Increase market share by five percent yearly for the next five years.
Increase profitability three percent yearly after break-even point.
Increase revenue two percent yearly for the next five years after year one and decrease costs one percent yearly for years two through five.
The strategic objectives...