IPA IP 2020 Question 6
A question IPA Japan published in 令和2年度 10月 ITパスポート試験 公開問題 問6, translated into English. ITPEC is based on the same exams.
Which of the following is an appropriate description concerning BSC (Balanced Scorecard)?
Explanation
Turning vision and strategy into actions from four viewpoints — the Balanced Scorecard plans, manages and evaluates strategy through financial, customer, business process, and learning and growth viewpoints.
The BSC, proposed by Kaplan and Norton, balances financial results with the non-financial drivers behind them. For each viewpoint the company sets strategic goals, the KPIs that measure them, target values and the actions to reach them:
- •Financial: what results shareholders expect (profit, sales).
- •Customer: how customers should see the company (satisfaction, market share).
- •Business process: which internal processes must excel (quality, lead time).
- •Learning and growth: how the organization and its people must improve (skills, information systems).
Answer (a)
Why not others:
- •(b) — activities from procurement to service each adding value and cost, together creating value for the customer, is Porter's value chain
- •(c) — choosing the product and business mix that allocates management resources best is PPM (product portfolio management)
- •(d) — evaluating strengths, weaknesses, opportunities and threats is SWOT analysis
Key rule: BSC = four viewpoints (financial, customer, internal business process, learning and growth) linking strategy to measurable goals; value chain = value added activity by activity; PPM = resource allocation across businesses; SWOT = internal and external factors.
Business Strategy Management · AI-written, may contain errors
This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.