Balanced Scorecard Advantages And Disadvantages

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Balanced scorecard is a management and a strategic planning system that is in use all over the world in our businesses, industry, government agencies and non-profit organizations (NGO). This strategy aims to improve organizational communication both internal and external, bring into line business activities according to documented vision and strategic plan of an organization that is putting them into action.
Robert Kaplan in liaising with David Norton in a session designed the balanced scorecard idea made use of the tool that measures organizational performance instead of using financial measures. They developed the system basing on the disadvantages companies accrued when using the old measures like the financial measures. They only measured short term and were manipulated more quickly thus not giving out exact measure of an organizational performance thus most companies have opted for balanced scorecard. At present almost all businesses in US, Europe, Middle East, Asia and Africa use the balanced scorecard system, the BSC has been in use for nearly 75 years. It has received a rating as the most used and highly relevant tool, and all companies are encouraged to use the balanced scorecard system (Crabtree, 2006).
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Since most companies, which use the system, have tested its effectiveness and the advantages, Anthony’s Orchard Company wish to develop its balanced scorecard. It will help them broadly execute their strategic plans that include purchase of the apple press. They will allow the company prepares apple juice, which will earn them estimated $95,000 of net income per year, and the new line will process $90,000 of cash in-flows. The second strategy, the company continues to search for new orchards to add variety and the last to exceed revenue of $25 million

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