The paper “ Balanced Scorecard for the Bookshop” is a potent version of a case study on finance & accounting. In a business environment that where competition is increasing at an alarming rate; it is highly imperative for any business to design strategies aimed at staying ahead of competitors. In a bid to make the bookshop competitive, a Balanced Scorecard has been designed to facilitate the achievement of the business’ mission and objectives. The Balanced Scorecard for the bookshop: FINANCIAL PERSPECTIVEThis perspective will set the goals for the business’ costs, sales and profitabilityStrategic objectivesThe main objective is to ensure the business’ profitability through increased sales and reduced costs. MeasuresSales per month, sales growth per month, cash flow, costs per month, monthly and annual profitability.
These measures are chosen because they define the financial performance of the business (Jeston & Nelis 2006, p. 87)TargetsTo record profits ranging around $5,500 per month and $66,000 per annumTo maintain minimum monthly sales at $14,500 per monthTo improve sales by at least 20 percent per annumTo reduce acquisition and operational costs to $8,000 per monthInitiativesThe increase in sales levels is dependent on the number of customers that the business acquires (Wilson 2004, p. 262).
The initiative, therefore, will be to intensify marketing, such that the business reaches out to as many customers as possible. This will be enhanced through innovative ways of attracting customers such as the use of free gifts and vouchers. The bookshop will have gift vouchers for frequent shoppers, which will be given in a form of lottery. Participants will gain entries whenever they shop at the bookshop thus giving them a chance to win vouchers to purchase products at the bookshop. In order to reduce costs, the business will aim at acquiring goods in bulk in order to benefit from economies of scale.
These benefits that a business for purchasing many goods at once such as reduced prices, discounts and free transport thus saving costs (Jeston & Nelis 2006, p. 106). Operational costs will also be minimized through outsourcing and minimizing expenses such as unnecessary printing, using recycled packaging materials and preserving electricity. CUSTOMERThe customers take a central place in business strategy because they are the major determinants of business success. Strategic objectivesThe major objective of the bookshop is to remain the preferred bookshop among customers in the area.
The aim of the business will be to ensure that customers are satisfied and that their needs are met as efficiently as possible. Among the most important requirements is to provide quality goods at reasonable prices and provide exceptional service to encourage repeat business. MeasuresMeasures to track the above objectives will include weekly sales, a number of positive customer feedback and level of profitability as compared to competitors. These measures are chosen because they will help track the trend in the organization’ s market share and identify courses of action (Carver 2009, p. 378). TargetsTo acquire and maintain a 30 percent market share in the area, thus hold the largest market share. To ensure that customers shopping at the bookshop get exceptional service. To be recognized as the bookshop with the most friendly prices.