ITPEC IP October 2020 Question 83
Which of the following techniques is used to set specific targets and evaluate the result from the four (4) viewpoints of “finance,” “customer,” “internal business processes,” and “learning and growth” in order to implement the vision and strategy of the company?
Explanation
Balanced scorecard — the technique that sets targets and evaluates results from the financial, customer, internal business process, and learning and growth viewpoints.
The balanced scorecard (BSC), by Kaplan and Norton, turns the vision and strategy into objectives, KPIs, targets and initiatives for each of the four viewpoints and links them by cause and effect: learning and growth improve the internal processes, better processes satisfy customers, and satisfied customers produce the financial results. Balancing the four keeps management from judging a strategy by short-term financial figures alone.
Answer (c)
Why not others:
- •(a) PPM — product portfolio management places businesses or products by market growth rate and market share (star, cash cow, question mark, dog) to allocate resources; it has no four viewpoints
- •(b) SWOT analysis — sorts internal strengths and weaknesses and external opportunities and threats to analyse the situation; it does not set targets or evaluate results
- •(d) Marketing mix — combines the 4Ps (product, price, place, promotion) to reach a target market
Key rule: Financial, customer, internal business process, learning and growth: whenever these four viewpoints appear, the technique is the balanced scorecard.
Business Strategy Management · AI-written, may contain errors
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