Cultural Considerations

John and Deborah’s company has been gathering information that can help the company
establish itself in the new strategic location. One of the items that the company considered was a
balanced scorecard and its four perspectives. The balanced scorecard was identified as an
essential analytical tool that businesses use to align business activities with strategic vision,
improve communication and appraise performance against strategic goals. This report is,
therefore, a balanced scorecard for the company, the considerations that the company needs to be
aware of to remain competitive, an analysis of the company’s competitive capabilities, and the
strategies that the business will use to evaluate the global marketplace in the future. The four
perspectives identified in the balanced scorecard are the financial perspective, customer
perspective, internal processes, and learning and growth.
Financial perspective
The company will have to assess its financial perspective by considering the financial
goals for the strategic expansion. The company will assess its strategic expansion on several
bases. John and Deborah’s company will need to increase its sales. The company’s ability to
economize costs will be tested since it will also determine how the company makes profits. The
nature and type of expenses will also affect the financial perspective. For example, the company
spends on research and development and composes general, administrative, and selling expenses.
The company will also need to apply strategic financial management in investments. One
way it can do this is through the acquisition of strategic assets. Acquisition of strategic assets is
insufficient if the company cannot utilize strategic advantage to increase revenues. The company
will also need to assess capital markets to determine the options for raising funds. Financing

3
activities in the new location may require the company to utilize debt. Debt financing will
increase the financial risk for the company but may be required to increase the cash available for
operations. The proceeds and profits from the strategic expansion will need to be split between
retained earnings, returns to shareholders, and reinvestment into the company. The company will
utilize the technology identified in the PESTEL analysis to keep proper financial records and
support financial management.
Customer perspective
The most successful global companies owe their success to their strategies to identify and
satisfy customer needs (Quesado et al., 2018). One of the most common strategies companies use
is conducting regular market surveys. This will be instrumental in the new location to advise the
company on the changes in customer tastes and preferences. Technology will again play an
essential role in customer perspective, as it is used for demand forecasting. Demand forecasting
will provide the company with insight into how it needs to structure its production to meet
customer demand as it arises. The company’s supply chain and logistics will also be a means to
provide customers with utility.
The company’s staff will be central to customer satisfaction. The company will need to
assess how the employees are skilled in handling, identifying, recording, and managing customer
complaints. Internal communication determines how quickly information travels to decision-
makers and the return time companies use to make decisions that affect customer satisfaction.
The company will also need to collect data from customer complaints that it can review
periodically to determine the most recurrent customer issues and develop strategies to address
them. This will enable the company to get positive customer reviews, which will be essential for
its operations.

4

Internal processes
The company’s internal processes will be instrumental in determining the success of the
strategic implementation. Several aspects for consideration include human resource
management, operations, innovation, and resource management (Quesado et al., 2018). Human
resource management includes leadership styles, employee motivation, and employee
development. In operations, the company will have to assess quality management. Innovation is
an essential part of internal processes. Innovation can be a source of competitive advantage,
which can help the company increase the success with which it implements its strategic
expansion. Resource management includes sourcing, work-in-progress management, inventory
management, receivables, and payable management.
Several metrics can be used to assess customer internal processes. These include
efficiency, throughput, error rate, and quality. Efficiency will be measured by comparing
production time and materials against total process time. The efficient use of production time and
materials will be instrumental in reducing production costs (Quesado et al., 2018). Error rates
affect the quality of the products. Furniture is a returnable product, and if errors lead to an end
product that customers feel does not meet the standards, they can return it, increasing the costs
and reducing efficiency. Errors are also affected by the employee’s creativity and skill levels,
which must be high to guarantee successful project implementation.
Learning and growth
This perspective allows the business to improve its processes and learn through various
mechanisms. It can be analyzed through several angles, for example, the employee perspective
(Benkova et al., 2020). Employees will grow through learning new production methods and

5
skills, which is part of organizational development that the company can support through
increasing employee training and education. The company’s growth can also be evaluated from
the customer’s perspective. For example, how the company will use market information to
increase market share and grow its customer base.
The company can also grow through technology. Technology can aid both employee
growth and organizational growth (Benkova et al., 2020). In employee growth, technology can
be applied to employee training. Under organizational growth, the company will use technology
to improve its production processes. Research and development will also aid organizational
growth. Growth is also assessed through numbers by assessing how the organization increases
the resources per department. This includes employees per department, the number of
departments, and the financial resources allocated to each department. The company’s growth
will also be assessed by the number of branches it opens in the new location. A balanced
scorecard can be complemented by other considerations that the company can use to remain
competitive.
Considerations to remain competitive
Most of the aspects that John and Deborah’s company will use to remain competitive
have been covered in the balanced scorecard. For instance, the company must remain innovative
to remain ahead of the competitive curve, and new products can help the company edge out the
competition. Secondly, the company must know and understand its competitors in the new
market. To achieve this, the company can use the information gathered through Porter’s five
forces analysis. The company used another analytical tool which is the SWOT analysis. To
remain competitive, the company will need to focus on its strengths and the opportunities
available in the market.

6
The company will have to apply best practices in leadership and management. This will
be essential to guarantee and monitor employee development. Leadership styles need to reflect
the company’s growth objectives. Management and leadership practices will allow the company
to realize cost leadership, product development and differentiation, and customer focus (Luciano
et al., 2020). It will also ensure that employees are adequately motivated to achieve the strategic
vision. The company will also have to apply prudent financial management. Financial
management reduces the company’s exposure to operational risks and ensures the continuation of
production, selling, and support activities (Yang & Wang, 2021). Finally, the company will
remain competitive by being customer-centric. Customer relationship management will be
essential in determining customer loyalty.
The company can compete in the identified market based on the information collected.
The company’s strengths identified in the SWOT analysis enable the company to take advantage
of market opportunities. Porter’s five forces analysis will provide the company with usable
information on its competitors and customers, and this information will help the company stay
ahead of the competitive curve. The PESTEL analysis carried out in earlier sections shows that
the new location has favorable economic conditions that make it a prime area for investment.
The assessment of the regulatory environment shows that there are no barriers to entry. The
market is ready, and the company is well prepared to take advantage of the new market.
Plan to evaluate the global marketplace in the future
In the future, John and Deborah’s company can evaluate the global marketplace through
market research. Technological tools can allow the company to keep tabs on changes in the
market. Additionally, the company can assess the information available through digital channels

7
such as social media trends and blogs. Social media is a great channel to gain insightful market
information.
In conclusion, John and Deborah’s company can use the balanced scorecard to assess the
effectiveness of its strategic plan. The four perspectives provided in the balanced scorecard will
allow the company to collect information that it can use to improve the quality of its
implementation plan. The company can compete in the identified market, providing a unique
opportunity for organizational growth.

8

References

Benková, E., Gallo, P., Balogová, B., & Nemec, J. (2020). Factors affecting the use of balanced
scorecard in measuring company performance. Sustainability, 12(3), 1178.
Luciano, M. M., Nahrgang, J. D., & Shropshire, C. (2020). Strategic leadership systems:
Viewing top management teams and boards of directors from a multiteam systems
perspective. Academy of Management Review, 45(3), 675-701.
Quesado, P. R., Aibar Guzmán, B., & Lima Rodrigues, L. (2018). Advantages and contributions
in the balanced scorecard implementation. Intangible capital, 14(1), 186-201.
Yang, F., & Wang, C. (2021). The mechanism of financial development promoting technological
innovation in strategic emerging industries. Technology Analysis & Strategic
Management, 1-15.