Essay: Importance of using the Balanced Scorecard
If there is, a tool that is important in the management of an organization is the balanced scorecard (BSC). This is due to the fact that the people in the management use it as a tool of monitoring the performances of the general staff when they want to monitor how the staff who are under them are the using the tools and the outcome. It is used to measure the benefits it is bringing to the given organization and at the same time the negativities. The main objective of Double M Grocery Stores is to ensure that it is leading in terms of market share in the New York City. “The balanced scorecard has evolved from its early use as a simple performance measurement framework to a full strategic planning and management system.” (Balanced Scorecard Institute, a Strategy Management Group company 2010) Currently we are serving around 3000 people who are living in New York City although at inception we were serving about a quarter of these.
It is of paramount importance to note that at Double M Grocery Stores, we are using market segmentation in order to increase our share of the market. (Gupta 2005) Our main target market is the working class who may never get time to visit the local stores for their groceries. The fact that we are working towards increasing our market share in New York means we have to increase our revenue allocation to most of our departments. Since shopping is done online, we are investing money in the development of our website. We are in the process of building two more stores for storing the extra needed vegetables. The money for doing this will come from the shareholders after they approve of it in our next annual general meeting. Employees ought to be increased in order to meet the needs of those new customers we are aspiring to acquire.