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    MCS Assignment - 3

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    MIRAL PATEL
    Wal-Mart uses a balanced scorecard approach to track performance across four perspectives: financial, customer, internal processes, and learning and growth. For the financial perspective, Wal-Mart's objectives are to increase revenues/total assets, revenues/employee, and return on investment through initiatives like reducing operating costs. In the customer perspective, objectives are to increase average customer size, customer ratings, and reduce complaints by providing more products and lowest prices. The learning and growth perspective aims to increase training hours, reduce turnover through empowerment, and boost employee decision making. Overall, Wal-Mart's strategy is cost leadership through efficient operations, bulk purchasing, and motivating employees.

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    MCS Assignment - 3

    Uploaded by

    MIRAL PATEL
    128 views13 pages
    Wal-Mart uses a balanced scorecard approach to track performance across four perspectives: financial, customer, internal processes, and learning and growth. For the financial perspective, Wal-Mart's objectives are to increase revenues/total assets, revenues/employee, and return on investment through initiatives like reducing operating costs. In the customer perspective, objectives are to increase average customer size, customer ratings, and reduce complaints by providing more products and lowest prices. The learning and growth perspective aims to increase training hours, reduce turnover through empowerment, and boost employee decision making. Overall, Wal-Mart's strategy is cost leadership through efficient operations, bulk purchasing, and motivating employees.

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    Wal-Mart uses a balanced scorecard approach to track performance across four perspectives: financial, customer, internal processes, and learning and growth. For the financial perspective, Wal-Mart's objectives are to increase revenues/total assets, revenues/employee, and return on investment through initiatives like reducing operating costs. In the customer perspective, objectives are to increase average customer size, customer ratings, and reduce complaints by providing more products and lowest prices. The learning and growth perspective aims to increase training hours, reduce turnover through empowerment, and boost employee decision making. Overall, Wal-Mart's strategy is cost leadership through efficient operations, bulk purchasing, and motivating employees.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    128 views13 pages

    MCS Assignment - 3

    Uploaded by

    MIRAL PATEL
    Wal-Mart uses a balanced scorecard approach to track performance across four perspectives: financial, customer, internal processes, and learning and growth. For the financial perspective, Wal-Mart's objectives are to increase revenues/total assets, revenues/employee, and return on investment through initiatives like reducing operating costs. In the customer perspective, objectives are to increase average customer size, customer ratings, and reduce complaints by providing more products and lowest prices. The learning and growth perspective aims to increase training hours, reduce turnover through empowerment, and boost employee decision making. Overall, Wal-Mart's strategy is cost leadership through efficient operations, bulk purchasing, and motivating employees.

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    BALANCE SCORECARD

    AND STRATEGY FOR


    WAL-MART
    GUIDED BY PREPARED BY

    Ms.Charmi Shah
    MIRAL PATEL -IU1955550054
    INTRODUCTION OF WAL-MART
     Wal-Mart, an American multinational retail corporation that runs chains of large department and
    warehouse stores

     Sam Walton- Founder & Mike duke- current CEO

     It started with a single store in Rogers, Arkansas in 1962 and has grown to what is now the
    world's largest and arguably, the most emulated retailer.

     Today, Wal-Mart operates over 11,500 stores in 28 countries around the world generating $482.2
    billions (2015) with 1.3 millions employees

     The average profit per hour is $1.8 million 35 million people shop at Wal-Mart everyday, as much
    as population of Canada

     90% Americans live within 15min of a Wal-Mart

     World's largest public corporation by revenue.

     Largest private employer in the world.


    MISSION & VISION

    “If we work together, we’ll lower the cost of living for everyone…we’ll give the
    world“We save people
    an opportunity what it’sso
    to see money likethey can
    to save andlive
    havebetter."
    a better life.”
    PERCEPTION OF BALANCE SCORE CARD WAL-MART
    THE FINANCIAL PERSPECTIVE

    The information available is the annual report and the financial


    statements. In addition, news reports of marketing strategy, internal
    operations, strategy, and management systems are also accessible.
    Objectives Measures Target  Initiatives

    Increase Revenue/total Increase revenues;


    Increase revenues/to Revenue/tot al assets
    assets by 8% during make a more thorough
    tal assets. percent.
    the next year. use of assets.

    Increase Increase employee


    Increase revenues/e Revenue/ revenue/employee by 5 efficiency through
    mployee.  employee % during next two training and
    years.  technology.

    Increase return on Reduce operating costs,


    Increase return on Return on investment by 2% and achieve economies
    investment.  investment..  every year for three of scale through bulk
    years. purchases.
    The three objectives are Increase revenues/total assets ; Increase
    revenues/employee and Increase return on investment.

    The strategy of Wal-Mart is cost leadership; increasing revenues/total assets


    is a strong indicator of cost reduction. Further, increasing revenues/employee
    will also help maintain its cost leadership.

     Finally, Increase return on investment will be possible only if Wal-Mart


    controls its costs. Each of the financial objectives is related to the strategy of
    Wal-Mart.
     THE CUSTOMER SERVICE PERSPECTIVE

    objectives Measures Target Initiatives

    Increase average Increase customer Provide a wider


    Average customer
    customer size of size by 5% every year variety of products
    size.
    Wal-Mart. for next five years. to customers. 

    Increase customer The prices at Wal -


    Increase customer
    Customer rating. rating by 10% in one Mart should be the
    rating of Wal - Mart.
    years’ time. lowest in the market.

    Reduce the number of Improve quality


    Reduce number of Customer customer complaints control of products
    customer complaints. Complaints. received by 4% every stocked and improve
    year for three years.  customer service.
    The three objectives are increasing average customer size of Wal-Mart,
    increasing customer rating of Wal-Mart, and reducing the number of customer
    complaints.

     The Mission is to help save money so that they can live better. If Wal-Mart
    helps customers save money, the customers will buy more from Wal-Mart..

     If Wal-Mart helps customers live better, they will give an improved rating to
    Wal-Mart. If the customer save money and live better, then there will be fewer
    complaints against Wal-Mart
     THE LEARNING AND GROWTH PERSPECTIVE

    Objectives Measures  Target Initiatives

    Increase training Average training Increase training hours Hire outside trainers.
    per employee by 5% Managers should
    hours per hours per each year for the next increase their time spent
    employee. employee.  three years.  for training.

    Increase employee
    Reduce employee
    Reduce employee Employee turnover rate by 3% each
    participation in
    turnover rate. turnover rate.  decision making. Also,
    year for next thee years. 
    increase job rotation. 

    Increase empowerment Give more decision


    Increase use of Empowerment index by 5% every year making authority to
    employee’s view index. for at least three years.  employees.
    The three objectives are Increase training hours per employee at Wal-Mart;
    Reduce employee turnover rate at Wal-Mart, and Increase use of employee’s
    view.

    The strategy of Wal-Mart is cost leadership; reducing employee turnover rate


    will lead to cost reduction.

     Further, Increasing training hours per employee will make employees more
    efficient and so will lead to cost reduction and better prices to customers.

    Finally, Increase use of employee’s view will provide greater initiative from
    employees to reduce costs.

    Empowered employees will be motivated employees and will help Wal-Mart


    control its costs.
    WALMART BUSINESS STRATEGY

    Mission “to provide a wide variety of high quality, branded and


    unbranded products at the lowest possible price” WALMART'S
    AGGRESSIVE PRICING (Cost leadership)

    Efforts to procure products at the lowest prices possible from


    manufacturers

    Wal-mart products are usually priced 20% lower than those of its
    competitors
    THANK YOU

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