Develop a balanced scorecard for LFR at the organisation Identifying at least one LFR’s strategic objectives in each of the perspectives (i.e.financial, customer, internal process, and learning and growth).Developing a measure in the form of a KPI for each objective identified.
Now apply the balanced scorecard you have developed at the store level. (You have recognised that the measures appropriate for each store may differ from those developed at the organisational level.)Describe why internal perspective measures that are appropriate at an organisational level may not be appropriate at an individual store level.Develop two new KPIs which would be appropriate to include in the internal process perspective of a balanced scorecard for the individual stores.
This report reflects the case study on Luxe Fashion Retail Limited. It is an Australian listed company which has been running its business since very long time. It has vision to become leading retailers of luxury goods in Australia and New Zealand (Rabbani, et al. 2014).
Balance score card approach of Luxe Fashion Retail Limited
Learning and growth perspective
Luxe Fashion Retail Limited wants to increase its overall market share in domestic and international level. This could be done by entering into strategic alliance with other organizations. Strategic alliance includes such as merger, Amalgamation, acquisitions strategies by Luxe Fashion Retail Limited with other target organization.
It is evaluated that Luxe Fashion Retail Limited has been planning to customize its products and services. However, with a view to increase the overall productivity company should plan to install cyber computing enterprises resources planning method. This will increase the overall effectiveness of organization.
Company has international market share. In order to satisfy their needs and demand, company has planned to customize its products and services as per the client’s needs and demand.
With a view to increase the overall turnover and profit of company, company needs to hire more 50 employees to strengthen its quality of products and productivity as well. If company could use ERP system in its value chain activities then it will surely increase its overall productions by 30% and profit by 5%.
Development of KPI in balance score card of Luxe Fashion Retail Limited
Learning and growth perspective
It is related to setting target market share (Sainaghi, Phillips & Corti, 2013).
Adoption of new ERP system and cyber computing frameworks.
Creating unique value chain activities.
It will increase the overall revenue by 20% and adoption of new process to create core competency.
Increase the market share.
Creating core competency in process working.
It will help Luxe Fashion Retail Limited to increase the effectiveness of its business.
Reducing overall cost of capital.
Creating core competency in Retail business sectors (Rabbani, et, al. (2014).
Exceling in the process level which result to higher level of client’s satisfaction.
It will help in easy down all the value process of all the stores of Luxe Fashion Retail Limited.
Establish automaton in process system.
Setting all the stores to create value on the investment
This could be done with the help of using experienced staffs and new technologies.
Entering into strategic alliance with other organization.
Integration of its value chain activities.
Establish automation in its value chain activities.
It will result to attracting high level of clients.
Customization of products and services offered by Luxe Fashion Retail Limited
It will be done by re-engineering its value chain activities.
Increment in the overall turnover and market share of company.
Setting new standards for the earning per share and dividend yield to shareholders. Reducing overall expenses and cost by implementing ERP system.
Increment in overall sales by 20% and profit by 5 %.
Increase the overall turnover by inversing the productivity
Increased level of quality of goods and services offered in all the stores of Luxe Fashion Retail Limited.
Implementation of balance Score card approach at the store level
If these all the four perspective is followed then all these stores will reflect high amount of earning and increased turnover. ERP system adopted will strengthen the reporting framework and communication channel in all of these 8 stores. In addition to this, increment in overall turnover will provide higher cash inflow in business (Keyes, 2016).
Internal perspective at organization level has objective to provide Customization in business process will also attract new clients in market. It is observed that each and every client at particular place have different value, belief and culture. Therefore, it will create cumbersome process to provide customization of products at organization level to stores level (Bhattacharya, et al. 2014).
Internal prospective measure and KPI
Internal prospective measure
It will establish customization of products and services at store level.
Changing Internal value system at all the store level.
Installing ERP system
It will create effective communication between all the stores and department.
Linking LFR strategies with KPI
Internal process perspective
Links to LFR’s strategy
Customization of products and services
It could be done by installing cyber computing ERP system.
It will set to the re-engineering strategies of LFR.
Increase in overall turnover and market share
Company could increase its overall market share and productivity if it hire experts and increase productivity.
Cyber computing ERP system could help in achieving set targets and implement proper level of strategic plans.
Bhattacharya, A., Mohapatra, P., Kumar, V., Dey, P. K., Brady, M., Tiwari, M. K., & Nudurupati, S. S. (2014). Green supply chain performance measurement using fuzzy ANP-based balanced scorecard: a collaborative decision-making approach. Production Planning & Control, 25(8), 698-714. Keyes, J. (2016). Implementing the IT balanced scorecard: Aligning IT with corporate strategy. CRC Press.
Rabbani, A., Zamani, M., Yazdani-Chamzini, A., & Zavadskas, E. K. (2014). Proposing a new integrated model based on sustainability balanced scorecard (SBSC) and MCDM approaches by using linguistic variables for the performance evaluation of oil producing companies. Expert Systems with Applications, 41(16), 7316-7327.
Sainaghi, R., Phillips, P., & Corti, V. (2013). Measuring hotel performance: Using a balanced scorecard perspectives’ approach. International Journal of Hospitality Management, 34, 150-159.
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