ITPEC FE Morning October 2023 Question 68
Which of the following is a business management technique that is used to develop specific targets and measures to implement a planned strategy, in consideration of the appropriate mutual relationships among four perspectives (i.e., financial, customer, business process, and learning and growth)?
Explanation
Balanced scorecard — it turns a strategy into targets and measures from four linked perspectives: financial, customer, business process, and learning and growth.
The balanced scorecard (BSC), by Kaplan and Norton, sets objectives, KPIs, targets and initiatives for each perspective and links them by cause and effect: learning and growth improve the business processes, better processes satisfy customers, and satisfied customers produce the financial results.
Answer (a)
Why not others:
- •(b) Growth matrix — Ansoff's product-market matrix: market penetration, market development, product development and diversification; it chooses a growth direction and has no four perspectives
- •(c) Product portfolio management — PPM places products by market growth rate and market share (star, cash cow, question mark, dog) to allocate resources
- •(d) SWOT analysis — sorts internal strengths and weaknesses and external opportunities and threats; it analyses the situation rather than implementing a strategy
Key rule: Financial, customer, internal process, learning and growth: whenever these four perspectives appear, the technique is the balanced scorecard.
Business Strategy Management · AI-written, may contain errors
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