HA2011 Managerial Accounting Trimester XXXXXXXXXXGroup Assignment Assessment Value: 20% Instructions: 1. This assignment is to be completed by a group of not more than 4 students. 2. Students must...

Management Accounting – Balanced Score card
Course Name
Course Date
Student’s Name
MANAGEMENT ACCOUNTING – BALANCED SCORECARD    11
Management Accounting – Balanced Scorecard
Introduction
Balanced scorecard, one of the performance measurement tool which was introduced by Kalpan and Norton in the year 1992 and 1996. The balance scorecard is the performance evaluation tool which helps in analysing the performance from the tangible as well as intangible perspective (Kaplan & Norton, 1992, 1996). In 1992, Kalpan stated that the current performance measure is basically through the internal financial data and does not consider any other perspective while analysing the performance of the company. The organization just used the obsolete data to analyse the performance of the company. The balanced score card gave a more analytical way which gave a balanced approach to the company which includes financial, customer, internal processes and learning and growth. The performance of the company is analysed from different perspective to analyze the performance of the company. Which can help in implementing different strategies which can help in improving the performance of the company. (Kaplan & Norton, 2006).
Over the past researches, there has been different performance evaluation tools which was introduced by the researchers and balanced score card being one of the most popular research. (Weller, 2006). The balanced scorecard is one of the tools which has been widely accepted by the companies across the globe and has been considered as one of the most important development in the management accounting. (Atkinson, Balakrishnan, Booth, Cote, Grout, Malmi, Roberts, Uliana, and Wu 1997).
Description about the company
Woolworths Limited is one of the biggest retail stores of Australia. The company sells different kinds of products which includes food, home development and improvement products, fuel, and general merchandise. Woolworths is the company which has multiple retail formats and banners. The company operates under various banners and operates the supermarket under the name of Woolworths. The company operates in more than 961 stores. The company follows multiple store formats which helps the company to cater to different needs and requirement of the customers. The company has a strong focus on the Australian food and liquor business. Despite of being one of the best retail outlets of the world. The company has high product recalls and customer complaints, apart from this the company has high reliance on the Australian Market.
Description about balanced scorecard
As per Kaplan and Norton (1996), the balanced scorecard is a tool and the performance evaluation metrics which helps in translating an organization's mission and strategy using different measuring tool which can help the company to evaluate the performance from different perspectives and help the company in providing an adequate framework for the strategic performance of the company. Balanced scorecard a performance measurement framework added the strategic non-financial performance measures to analyse the performance of the company. Balanced scorecard has helped in development of different management and strategic concepts that are widely used today. Balanced is the word that is referred by Greek playwright, Euripides, who stated that the organization should have balanced requirement and the performance should be analysed adequately, a balanced analysis of the performance of the organization is the heart to the strategy of the company. (Bromiley & Cummings, 1989) while scorecard is referred as the approach which is used in documenting the results attained from the analysis.
Today, the organizations have varied functions which they perform which includes the human resource, technology, and other aspects which are used for evaluating the performance of the company. The company’s performance does not totally rely on the financial aspect in todays’ world but also certain different aspects which helps to the company to attain the competitive edge.
Balanced scorecard is said to be a strategic management technique which helps in communicating and aligning the strategies of the company to its goals and objectives. As per Atarere and Oroka, balanced score card is the tool which represents the share division of an organization. It represents the holistic model of the accomplishments of the company from different perspectives. It helps in balancing the financial and the non financial perspective of an organization by emphasizing on the qualitative as well as quantitative view of the company. The implementation of the balanced score card take care of the tangible as well as intangible aspect of the company.
There are four major perspectives which are considered in the balanced score card which includes financial, customer, internal business processes and learning and growth perspectives.
Financial Perspective:
The financial perspective of the balanced score card helps in analysing the economic consequences of the company which the company has already undertaken. It majorly emphasize on the financial performance of the company which relates to the measure of profitability and the return the company is able to provide to its shareholders. It is usually used by the investors to know the return on their investment. The major question that is answered under this perspective includes: how should organizations appear to shareholders? Which is usually done by analysing its profitability, solvency and other aspects of the financial performance. For analysing the organization from financial perspective, it is important that the company has the provision of the right and timely financial data which can help in analyzing the performance of the company from various perspectives. As per Kaplan and Norton, (1992), there are three major aspects of financial perspective which needs to be considered when analysing the performance of the company. These include:
· Revenue Growth
· Cost reduction
· Asset utilization
Revenue growth is the activities or the measure which the company can do which can help in improving its sales and revenue. This can relate to development of new product, segmenting for new customer base and emphasizing on the division which is more profitable.
Cost reduction emphasize on adopting the method which can help in reducing the costs and maximizing the value. The company should aim on reducing the production and the selling costs without compromising on the quality of the product.
Asset utilization emphasize on efficiency of the firm. This includes the...