Based on your analysis in IP3, develop a complete balanced scorecard that helps put the pieces together. Then, answer the following questions:

 

• What are the considerations that you need to be aware of to remain competitive?
• Based on the research and analysis that you have done, can you compete in the market that you have chosen? Why or why not?
• How do you plan on evaluating the global marketplace in the future?

The balanced scorecard is a strategic performance measurement framework that provides a comprehensive view of an organization's performance by considering four distinct perspectives: the learning and growth perspective, the business process perspective, the customer perspective, and the financial perspective. Developed in the early 1990s by Dr. Robert Kaplan and Dr. David Norton, it is a strategic management tool that goes beyond the typical traditional metrics. The balanced scorecard structure enables organizations to align their strategic objectives, measure performance, and determine desired outcomes. This results in providing more of a complete view of an organization's performance. This paper aims to explore the concept of the balanced scorecard, analyze the significance of each perspective, and discuss the importance of combining different strategies when pursuing global expansion. Furthermore, it will provide an overview of ethics and one additional strategy that should be part of the company's strategic framework for successful global expansion moving forward.

"Financial performance measures indicate whether the company's strategy, implementation, and execution are contributing to bottom-line improvement" (Kaplan & Norton, 1992). The financial perspective focuses on financial outcomes and measures such as revenue, profitability, and return on investment. This perspective would involve setting financial targets, monitoring costs and pricing strategies, managing cash flow, and ensuring sustainable profitability.

The customer perspective highlights the concept of understanding and being able to meet the consumer's needs. "The combination of performance and service measures how the company's products or services contribute to creating value for its customers" (Kaplan & Norton, 1992). This perspective assesses topics such as: customer acquisition costs, reviews, referrals, testimonials, and customer retention rate. This perspective would involve offering unique and customized furniture designs, providing exceptional customer service, leveraging digital platforms for personalized experiences, and building long-term relationships with clients.

The business process perspective focuses on the optimization and efficiency of internal processes to deliver products and services. "The internal measures for the balanced scorecard should stem from the business processes that have the greatest impact on customer satisfaction - factors that affect cycle time, quality, employee skills, and productivity for example" (Kaplan & Norton, 1992). This helps companies identify internal processes that must improve, and implement the desired changes in order to reach the financial, as well as customer satisfaction goals. In the context of a high-end furniture organization, this perspective would entail streamlining the supply chain, enhancing production capabilities, ensuring quality control, and implementing sustainable practices to minimize waste and environmental impact.

The learning and growth perspective focuses on the organization's ability to promote continuous improvement, innovation, employee development. "Intense global competition requires that companies make continual improvements to their existing products and processes and have the ability to introduce entirely new products with expanded capabilities. A company's ability to innovate, improve, and learn ties directly to the company's value" (Kaplan & Norton, 1992). This perspective includes employee training and corporate cultural attitudes, related to both individual and corporate self-improvement. "The positive changes a company makes in this perspective can also improve a company's internal processes" (Indeed Editorial Team, 2023). For a high-end furniture organization expanding in the UAE, this perspective would involve investing in employee training, gaining and retaining top talent, promoting a culture of creativity, and leveraging technology to enhance manufacturing processes and customer experiences.

For a high-end furniture company globally expanding to the UAE, each perspective of the balanced scorecard is of the utmost importance to the overall success of the business. The learning and growth perspective enables the organization to stay innovative, improve product designs, and develop employees' skills to meet the demands of the market. The business process perspective helps in optimizing the production processes, managing the supply chain efficiently, and adopting sustainable practices to align with the UAE's environmental regulations. The customer perspective ensures the organization understands the unique preferences of its target audience in the UAE, offers personalized products and services, and builds a strong customer base. Lastly, the financial perspective ensures that the organization maintains profitability, manages costs effectively, and achieves sustainable financial growth.

"Ethics must be global, not local" (Lampton & Razack, 2020). Ethics play a vital role in the success of an organization's global expansion strategy. Upholding ethical standards builds trust with external stakeholders, enhances the organization's reputation, and ensures sustainable growth. Many companies like to operate according to the phrase "When in Rome, do like the Romans do", referring to adopting cultural norms and business procedures. While it makes sense to tailor business practices to the area you operate in, a company should never compromise on core ethical values. This should hold true whether we operate in the United States or in the UAE. Ethical sourcing of materials, fair labor practices, environmental sustainability, and transparency in business operations should be of the highest priority. "Establishing a global code of ethics requires a comprehensive effort across the organization to continue to improve business practices and prevent or root out corruption. It doesn't matter if you're a model company in your home country if you act unethically elsewhere" (Lampton & Razack, 2020).

One strategy that this high-end furniture organization can adopt for global expansion is a market penetration strategy. This strategy focuses on increasing market share by targeting existing markets with existing products. The organization can leverage its reputation and high-quality products to establish a strong presence in the UAE market, capture a significant share, and then expand to other markets in the region.

Combining different strategies is crucial for successful global expansion due to the complex and diverse nature of international markets. A single strategy may not address all the unique challenges and opportunities that are present in different regions. By combining strategies such as market penetration, market development, product diversification, or strategic alliances, organizations can better adapt to local market conditions, mitigate risks, and leverage synergies to maximize their chances of success.

The balanced scorecard framework provides a holistic view of organizational performance by considering four perspectives: learning and growth, business processes, customer, and financial. For a high-end furniture organization expanding in the UAE, each perspective plays a crucial role in achieving success. Additionally, integrating ethics and a well-defined strategic framework, including a market penetration strategy, is essential for global expansion. By combining different strategies, organizations can effectively navigate the complexities of international markets and increase their chances of achieving sustainable growth and success.

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Balanced Scorecard for HighEnd Furniture Company Expanding to UAE I Learning and Growth Perspective Objectives Enhance employee skills in design production and customer service for the UAE market Fost... View the full answer