Unit 3 Individual Project – Strategy Composition

John and Deborah’s company has been evaluating management practices that can help it
ensure efficient management of both internal and external aspects of the business. The company
has therefore decided to evaluate the balanced scorecard concept. Therefore, this report evaluates
the balanced scorecard, its four perspectives, an overview of ethics and sustainability as part of
the company’s strategic framework for global expansion, and the importance of the company in
pursuing global expansion.
A balanced scorecard is a strategic management measurement tool. It applies to many
businesses and industries, and many organizations use it to assess their strategic performance
from four perspectives (Benkova te al.,2020). These four perspectives are financial, customer
perspective, internal processes, and learning and growth. The perspectives are the epicenter of
organizational vision and strategy.
Financial perspective
John and Deborah’s company can evaluate its strategic performance against financial
goals. Financial performance can be observed through financial statements. Essential items that
can be observed in the financial statements include revenues. Revenues determine profits and
give an impression of how customers respond to the company’s products. Profits also determine
how soon the company can break even and return the investment that the business owners
invested in the expansion process. Financial statements also demonstrate how the company can
acquire strategic assets. Strategic assets can be utilized to develop a competitive advantage. The
financial perspectives also show the sources of financing available for the company’s strategic
expansion activities.

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Customer perspective
Companies develop value based on how well they can satisfy their customers. A large
percentage of the activities that companies perform have a customer perspective. For example,
marketing activities create appeal, attract new customers and create market share. Product
development and design create new products that meet customer expectations. Activities such as
supply chain and logistics ensure that the company creates utility. They ensure that the
company’s products reach the customers at the most convenient location and within the clearest
timelines. The company must also evaluate trends and changes in customer tastes and
preferences to determine how to structure its internal processes, which have been discussed in
the section below (Benkova et al., 2020)
Internal processes
Companies evaluate internal processes to determine efficiency. Efficiency can be
determined by how the company can utilize the resources and advantages available (Quesado et
al., 2018). Some resources include financial resources, human resources, customers, and
competitive advantage. Efficiency refers to how much benefit the company derives and how well
the company reduces wastage. In the furniture industry, internal processes can also assess the
quality of the company’s product. Leadership and management qualities are also analyzed from
this perspective. They determine how well the company can rally and motivate its staff and
employees to support the strategic expansion activities. Employee skills, ability, and creativity
also come into play when assessing internal processes. These skills will be essential in the
company’s activities in the new location.
Learning and growth

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This perspective evaluates how the company can grow in different aspects. Once the
company settles in the new location, it will need to grow its customer base and improve its
technological infrastructure and market equity. Growth and learning will also determine how
well the company can use available information. One technique John and Deborah’s company
can use here is market research. The SWOT analysis determined that China has one of the best
technologies in the world. This means that with proper leadership and the right resources, the
company will secure the best technologies which it will use to improve operations.
In summary, the balanced scorecard will provide a multifaceted approach for the
company to assess its strategic expansion decisions. John and Deborah’s company will benefit
from its application of the balanced scorecard. While processes and management are essential,
the company must evaluate ethics and sustainability and their influence on the strategic
expansion decision.
Ethics
Ethics are concerned with the morality that is employed in business practices. Several
ethical theories have been developed over time, which the company can use to develop and instill
an ethical culture in the organization (Ferrel et al., 2012). These theories include deontology,
utilitarianism, rights, and virtues. The deontology theory states that individuals can make ethical
decisions by following rules, obligations, or procedures. The utilitarianism theory states that
people can make ethical decisions based on what course of action achieves the best benefit for
most people. This theory differs from the deontology theory because what laid down rules and
obligations dictate is not always the best for most people. The rights theory states that ethical
decisions can be made by considering the rights of individuals.

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Rights are considered ethically correct and can form a basis for ethical decision-making.
The virtue theory states that individuals can make ethical decisions by relying on personal moral
codes. There are no limitations on the applicability of these theories as either can be used by the
company, either individually or collectively (Ferrel et al., 2012). John and Deborah’s company
can use other strategies to develop an ethical culture, which is a code of conduct. A code of
conduct directs employees’ conduct on official company business. It also directs the nature of the
interaction between the company and its shareholders. A code of conduct can be updated every
once in a while, depending on the nature of the operations. Additionally, the company can use
training to instill an ethical nature in the company.
Sustainability

John and Deborah’s company can adopt sustainability as an additional strategy in the
global strategic framework. Modern business is adopting sustainable practices aimed at
preserving resources. There are four sustainability types: human, social, economic, and
environmental (Gimenez et al., 2012). While many companies have been unable to implement all
four, most companies have been involved in environmental sustainability practices. John and
Deborah’s company can adopt environmental sustainability practices in their operations to also
reduce costs and achieve efficiency. For example, the company can use green energy from solar
to power up its facilities. This way, it can reduce power overheads and reduce costs. The
company can also commit to reducing carbon emissions by a certain percentage and demonstrate
to stakeholders its steps to achieve such goals. Environmental sustainability is described as an
investment for future generations. In this context, the company can indulge in a tree planting
exercise periodically, such as quarterly or monthly. Since furniture uses a lot of wood, this can

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be viewed as a way of giving back to the environment for the resources that it obtained from the
environment.
Economic sustainability
Economic sustainability affects the practices that businesses indulge in to support
economic growth without negatively affecting other tenets of sustainability (Gimenez et al.,
2012). For example, businesses should be able to reimburse their employees adequately. Under
economic sustainability, a company that profits from employees’ effort and hard work should be
able to reward that hard work. The company should ensure that part of the profitability is geared
towards ensuring economic sustainability for the employees, which means better remuneration.
Social sustainability
Social sustainability can be defined as the ability of a company to preserve social capital
by preserving the business elements that emanate from society. The business should be able to
ensure that its operations do not negatively affect the social structures within which the business
operates. Under social sustainability, companies engage in corporate social responsibility (CSR)
activities. John and Deborah’s company can indulge in such activities in the new location to
demonstrate its commitment to social sustainability.
Human sustainability
Human sustainability refers to businesses’ processes to protect and preserve human
capital. Human capital, by definition, extends beyond the company’s employees to encompass
other stakeholder groups such as investors, suppliers, and customers (Gimenez et al., 2012).
Businesses should take elaborate measures to ensure that they preserve and improve human life
quality. Issues such as social justice fall under this sustainability pillar. Businesses have found

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ways for sustainability reporting through Environmental, Social, and Governance (ESG)
reporting data, technology and standards (Macpherson et al., 2021).
In conclusion, the balanced scorecard provides a method for John and Deborah’s
company to assess its strategy. The four perspectives encompass critical issues inside and outside
the company that impacts its performance. The company can also use ethics to ensure its
operations are above board. Sustainability can be an essential concept to cap off the success that
the company will generate from its activities.

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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.
Ferrell, O. C., Harrison, D. E., Ferrell, L., & Hair, J. F. (2019). Business ethics, corporate social
responsibility, and brand attitudes: An exploratory study. Journal of Business
Research, 95, 491-501.
Gimenez, C., Sierra, V., & Rodon, J. (2012). Sustainable operations: Their impact on the triple
bottom line. International journal of production economics, 140(1), 149-159.
Macpherson, M., Gasperini, A., & Bosco, M. (2021). Implications for Artificial Intelligence and
ESG Data. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3863599
Quesado, P. R., Aibar Guzmán, B., & Lima Rodrigues, L. (2018). Advantages and contributions
in the balanced scorecard implementation. Intangible capital, 14(1), 186-201.