Relevant Objectives of Strategic Nature for a Company - Essay Example

? Part 3 Table of Contents Table of Contents 2 Balanced scorecard 3 Financial Perspective 3 Perspective 4 Internal process perspective 5 Learning and growth perspective 6 Reference 7 Balanced scorecard The strategic objective of a company that is often designed by the top level management of an organization is a part of the strategic planning process. In most cases, it has been noticed that during the process of charting the strategic objective of a company, the focus is given on the vision, mission as well as the core objectives that are followed by the company (O’Connor, 2010, p. 84). While talking about the issue of designing significant and relevant objectives of strategic nature for a company, the concept of balanced scorecard needs to be highlighted. From a basic point, it can be said that the balanced scorecard is a tool which helps in designing the strategic objectives for an organization. The unique reason for using a balanced scorecard is that it provides a clear picture in regards to the desired objectives and its associated goals of the balanced scorecard (Bender, 2010, p. 209). While discussing the concept of balanced score card, four critical aspects needs to be highlighted. The aspects range from financial perspective, customer perspective, internal process perspective as well as learning and growth perspective (Nair, 2004, p. 20). Now for the development of strategic objectives of Super Fit Gym, the diverse perspectives of the Balanced Score Card will be taken into account. Financial Perspective From a simplistic view point, the financial perspective often represents the financial consequences of the actions taken in regards to other three perspectives of the balanced score card tool. However, it also has to be mentioned that the financial perspective will cover up the factors related to probable market share, revenues and costs of the company, the profitability aspect as well as the competitive position of the organization. Now while discussing financial perspective in regards to Super Fit, most of the above mentioned factors has to be considered. While talking about market share that can be acquired by Super Fit Gym, the potential of the market has to be identified. Now by assuming that the Gym is located in a well off location, where there is only a small number of players existing in this particular sector, it can be said that the goal of Super Fit Gym is to go for acquiring around 10% of the total fitness market of that region within the first two years of its operations. To achieve a strong profitability position, the super fit gym should focus on generating high sales for the services. While reviewing the competitive position, the fitness firm should target to occupy the top position in the upcoming two years. Customer Perspective The customer perspective of balanced score card discusses the target market as well as the desired target audience. The customer perspective also takes into account the prospect of value proposition for the desired market and target audience. The target audience for the fitness company is multiple in nature. It comprises of the young people, middle aged as well as the elderly people. The market that is being targeted is the regions adjacent to the gym’s location. The value proposition of the organization is to provide high quality fitness services to the consumers. While discussing the customer perspective in regards to the balanced scorecard, which is a vital tool for designing strategic objectives, the factors of customer satisfaction as well as customer retention have to be considered as well. To ensure customer satisfaction of the target audience, the services of the gym will be priced at an affordable and reasonable rate. Also, for increasing customer satisfaction for the services of the gym, the fitness organization will look forward to offering services of fitness through expert fitness trainers only. In order to look after the issue of customer retention, the gym will be conducting periodic survey exercises so as to understand the customer satisfaction level. It also needs to be mentioned that the conduction of surveys will help the gym to pinpoint the issues which might help in betterment of services, thereby increasing customer value and customer satisfaction. Internal process perspective The internal process perspective of the balanced score card concentrates on identifying the issues that the organization must excel so as to continue enhancing the value of the services offered to the customers (Niven, 2005, p. 15). The internal process perspective often evaluates the daily process, through which the service which is offered to the consumers. The various factors that comprise the internal process perspective of balanced scorecard are measures of process performance, productivity enhancements and operational metrics. The Super Fit Gym provides fitness services, which are rendered by high quality expert trainers. Hence, to judge the process performance in this case, the performance of the trainers needs to be evaluated. This can be carried out by conducting a customer satisfaction survey in which the performance of the trainers will be evaluated and rated by the customers. The enhancement of productivity in this case can be done by assigning the expert trainers to handle more number of participants per session. Also, for enhancing productivity, effective and optimum usage of the fitness equipments also needs to be done by the trainers as well as the participants. For implementing operational metrics, the fitness organization needs to consider on the process of designing a higher number of sessions for the services offered. Also, Super Fit Gym needs to concentrate on the lines of better and optimum usage and management of resources so that it can efficiently handle the spike in frequency of service providing abilities to the target audience. Learning and growth perspective The learning and growth perspective talks about the ability of the organization to create long term growth and improvement (Mowen and et.al, 2008, p. 527). This particular perspective of the employee growth talks about the issues of employee satisfaction, employee retention, technological innovation. It is important to consider that all of the contributors to the learning and growth perspective of the balanced score card are directly or indirectly attached to the human resource factor. It has to be highlighted that the employee satisfaction is a very critical factor for organization that renders service to the customers and other stakeholders. In case of Super Fit Gym, the unique advantage lies in providing high quality services to the customers of the adjacent location. Considering the social factor that concerns the high awareness for healthy living, multiple competitors in the region might evolve. Hence, high employee satisfaction is important to retain the highly expert trainers of the gym. For the purpose of retention as well as increasing the satisfaction level of the employees, the gym should focus on providing various kinds of employee benefits in the form of fringe benefits, flexible timings etc. Now talking about technological innovation, the gym should focus on continuously maintaining as well as upgrading the fitness equipments of the gym. Having a well maintained and state of art infrastructure and resource, the gym will be able to attract greater number of potential customers, which will automatically contribute to the overall growth of the organization. Reference Mowen, M.M. and et.al. (2008). Cornerstones of managerial accounting. USA: Cengage Learning. Niven, P.R. (2005). Balanced scorecard diagnostics: Maintaining maximum performance. UK: John wiley & Sons. O’Connor, T. (2010). Strategic planning for distributors: Execution isn't everything -- it's the only thing! USA: NAW Bender, M.B. (2010) A manager's guide to project management: Learn how to apply best practices. New Jersey: FT Press Nair, M. (2004). Essentials of balanced scorecard. U: John Wiley & Sons. Read More