Running head: BALANCED SCORE CARD-SKY LIMITED
Balanced Score Card-Sky Limited
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BALANCED SCORE CARD-SKY LIMITED
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Balanced Score Card-Sky Limited
Introduction
Sky limited in a new company that is innovating a new soap product in the market under
the name Sky soap. Use of this sky soap makes one to have softer, prettier and more luxurious
hands. The soap smoothens the skin and soothes the nerves of the user. It also cures depression,
the blues and aging. Its consistent use and quality make it an indispensable product in the homes.
Through the innovation of the product the company ensures that provides purity, versatility and
can float. The writing will focus on the balanced score card of Sky Limited, trends, assumptions,
potential risks, and how to mitigate these risks.
Sky‘s new division Key trends
To meet the customers’ needs globally using our new Sky soap product.
Adoption of new technology to improve the product.
Ensure customer sustainability through maximum satisfaction.
Sky’s new division Key Assumptions
The products will serve all customers satisfactorily in the global market.
Improvements on the products will be on research based strategies and laboratory tests.
The products quality will be better than that of competitors in the market.
Sky’s new division Key Risks
Financial

The funds may not be spent as planned in the division and in accordance with procedures.

Resources may not be efficiently utilized.

The resources may not be used to achieve the intended results.
Customers
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The customers’ perception to the value of the new soap product may not be appropriate.
The product may not meet the competitive advantage.
The division may not sustain the customers.
Internal Business process
The company’s processes may not deliver competitive advantages.
The learning and growth
A challenge may arise on management to employees due to lack of enough motivation, creativity
and knowledge.
Development of Strategic objectives
Financial perspective

To increase the market share of the new product by 10 Percent every year.

To see significant revenue from the new product launch

To maximize profitability of the product per transaction

To enhance a strong competitive position.
Customer value perspective

To retain the targeted customers through product improvement.

To build customer recognition

To dominate major markets.

To delight targeted customers through product satisfaction.
Internal process perspective

To compete on product reliability.

To increase the size of the organization through inclusion of the new product.

To continually challenge the competitor product in the market place.
BALANCED SCORE CARD-SKY LIMITED

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To capture a unique supply chain.
Learning and growth perspective

To develop skilled staff.

To motivate employees so as to reduce turnover.

To enhance a good organizational culture.

To create organizational alignment.

To improve the quality of the new soap product using an up to date technology.
Solutions to potential risks
Financial risks
Firstly, in order to avoid some careless spending, the division should have measures of
control of finances that should verify all the expenditures. It should have a budget for all the
running costs on the procedures. Proper planning and budgeting will help to eliminate this risk.
Additionally, all the spending should be dully authorized and accounted for. Secondly, work in
the division should be monitored to ensure that the resources are fully utilized properly. These
will help to eliminate under utilization that may reduce efficiency lower the quality of the
product. Lastly, the goal of the division should be clearly defined and communicated. These will
help to ensure that the recourses of the division are utilized for the intended purpose
(Rohm2015).
Customer perspective
Firstly, in order to eliminate the risk of inappropriate perception by customers on the new
soap product, the division should be customer oriented. It should work together with its targeted
customers in order to understand their needs (prenhall.com). It should then focus on these needs
to ensure that these customers achieve maximum satisfaction. Secondly, the division should
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ensure that the innovation of the product is as a result of a good research -based strategies and
continuous tests. Good and quality products will help it to retain its customers (Business
Balls.Com). The product differentiation of the product should also be unique to distinguish it in
the market with that of its competitors (Rohm2015).
Risks from internal process perspective
The division should hire correct staffs that will understand and utilize the company’s
processes to the advantage of its success in the market. These processes should be clearly defined
and communicated. The division should also regularly service its machines to avoid breakdown.
The risk from learning and growth perspective
The division should provide a continuous training to its employees in relation to this
innovation and the application of the current technology. These will help to eliminate the risk of
lack of proper knowledge that may pose as a challenge to the division. It should also motivate
employees to their satisfaction. These will improve their morale to work and thus increase
efficiency (The Guardian Sustainable Business2014).
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Financial

To achieve high
returns on
investments
 To see
significant
revenue from the
new product
launch
 To improve the
cash flow
Vision and Strategy
Customers



To build customer
recognition
To dominate the
major markets
To delight the
targeted customers
To produce a superior
product that will satisfy the
clients’ needs in the market
Internal Business Process



Learning and Growth



To value staff
To develop skilled
workforce
To create
organizational
alignment
To compete on
product reliability
To continually
challenge the
competitor product in
the market place
To capture a unique
supply chain
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Maclay, A. (2004).A practitioner’s Guide to the Balanced Scorecard-CIMA
http://www.cimaglobal.com/Documents/Thought_leadership_docs/tech_resrep_a_practitioners_g
uide_to_the_balanced_scorecard_2005.pdf
Metric and target of the strategic objectives
Financial perspective
Measurement
High return of investments.
-ROI or ROCE
To see significant revenue
from the new launch
-Revenue growth
in
a given product
line
To improve cash flow
-Creditor Days
Internal business process
To compete on product
rates
Reliability
To continually challenge
the competitor product
in the market place
To capture a unique
supply chain
suppliers
-Production defect
Customer perspective
Measurement
To build customer
Recognition
To dominate major
-Brand awareness polls
markets
To delight the target
customers
-Increase market share
by 10 percent every year
-A low market expenditure
as a percentage of sales
Learning and growth
To value staff
-Employee retention index
To develop skilled
Retain 9 out of 10 per year
Workforce
-No. of training hours
completed
Add 3 hours per week
To create organizational
Alignment
-Peer evaluation measures
-Time
-Percentage of
revenue dependent
on the division
Maclay, A. (2004).A practitioner’s Guide to the Balanced Scorecard-CIMA
BALANCED SCORE CARD-SKY LIMITED
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http://www.cimaglobal.com/Documents/Thought_leadership_docs/tech_resrep_a_practitioners_g
uide_to_the_balanced_scorecard_2005.pdf
Communication plan
Purpose
The purpose of this plan is to ensure that customers receive satisfaction of the soap brand
that Sky soap new division plans to produce. To achieve this satisfaction, it is important to
clarify the goal of the new division in the organization. It also aims at ensuring that all the
processes and requirements are adhered to in order to meet the desired objectives. Additionally,
it addresses all the necessary measures to achieve the required objective.
Audience
These include all the departmental heads in the division and the staffs under them since
they have direct involvement in production.
Communication Channel
Written memos on the organizations notice board and orally through meetings. Written
communication is a cheap way of communication within the organization and also the staffs can
use then frequently as references. Oral communication gives a clear picture of what is in place
and all the queries can be easily be discussed openly.
Conclusion
In conclusion, Sky Limited new division can achieve maximum satisfaction of its
measures by taking into consideration of all the objectives and necessary measures in the
balanced score card. The division is subject to some potential risks. Through proper mitigation,
the firm can avoid them. With proper measures in place, the division may dominate its target
markets and generate high returns. It should therefore consider financial, customer, internal
business process and learning and growth perspectives.
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References
Maclay, A. (2004).A practitioner’s Guide to the Balanced Scorecard-CIMA
http://www.cimaglobal.com/Documents/Thought_leadership_docs/tech_resrep_a_practiti
oners_guide_to_the_balanced_scorecard_2005.pdf
n.a. (n.d).Customer –Driven marketing strategy creating value for target customers. . Retrieved
from http://www.prenhall.com/behindthebook/0132390027/pdf/Kotler_CH07.pdf
Rohm, H. & Montgomery, D. (2011). Balanced Scorecard Institute. Retrieved from
http://www.balancedscorecard.org/portals/0/pdf/linkingsustainabilitytocorporatestrategyu
singthebalancedscorecard.pdf
Business Balls.Com. (2015)Balanced Score Card. Retrieved from
http://www.businessballs.com/balanced_scorecard.htm
The Guardian Sustainable Business. (2014).Sustainable Business case studies: Sustainable
Business case studies: Innovation and inspiration in corporate sustainability. Antithesis
Publishing Group. Retrieved from http://anthesisgroup.com/wpcontent/uploads/2014/10/Sustainable-Business-case-studies-2014.pdf