ANSWER # 1
Bradtech in the coming 12 month has to focus on two factors; first expanding market share of the new product. As the first product’s market share is expected to decline over a period of time so it is important for the Bradtech to expand the business share of second profitable product. Since most of the competitors are fragmented so expansion would not face greater resistance from market players. Increasing sales of the second product would also benefit business with the capital required for expansion in coming years as current position of the business requires maintaining stringent control on capital expenditure.
The second factor to be focused within next 12 months is to improve the timely delivery of the raw material that is currently being delayed. As the company is to develop some new product as matter of urgency therefore controlling such delays are critical to meet the objective on time.
ANSWER # 2:
The balance scorecard includes performance measurement from four perspectives that include financial, customer, internal processes and learning and growth. Each of the four perspectives has to be well defined in order to generate the due performance of the entire business (David, 2007).
Balance scorecard for the Bradtech including details for the measurement, frequency, data for the measurement and rationale for inclusion has been given below:
Bradtech shall develop the balance scorecard in line with the business strategy and objective of developing the leading position in the industry.
ANSWER # 3:
The performance evaluation of every department is extensively dependent on the product or outcome from that particular department. For instance, financial department’s efficiency is measured with its capacity to generate low cost capital, high returns from investment placements and tax benefit facilitation etc.
Bradtech is a manufacturing concern and the balance scorecard’s learning and growth perspective has suggested evaluating the cost and benefiting assessment of the each department. Since every department incurs cost but revenue is finally generated by sales department, therefore, it is important to determine the factors that will measure the benefit of generated from every department separately. Balance scorecard although includes detailed review of the firm however, the tool and its respective methodology development is expensive in terms of resource requirement. Therefore, it is suggested that as evaluation of every department in balance scorecard would incur an excessive cost therefore it shall begin stepwise implementation of department cost and benefit assessment. The implementation shall begin with sales department that generates direct sales followed by marketing department that generate leads and so on so forth. In line internal assessment shall be conducted within every department preparing team to be included in the balance score card valuation. Hence such process will not incur cost abruptly as firm has been capital stringent and sequential inclusion will results comprehensive tool developed for organization at cost spread over time.
References
David, F. (2007). Strategic Management: Concepts and cases. Upper Saddle River, NJ: Prentice Hall.
