By Team A4

1. Winning Strategies Part 1 FaniDimopoulou Thomas Kandrikal Surya Saha JiShen IvayloStoykov Miia Zhang ByTeam A4

2. BALANCED SCORE CARD Theory of BSC Advantages & Disadvantages of BSC Steps to minimise disadvantages Strategy deployment for WaveRider ByTeam A4

3. The BSC approach gives a broad view of the factors that lead to business success (Kaplan and Norton, 1996). Not only the financial measurements are considered but also the operational ones. BALANCED SCORE CARD ByTeam A4

4. BALANCED SCORE CARD • DISADVANTAGES Balanced outlook Expensive process Scalability Time consuming Customer perspective Subjective BSC can cause uncertainty Employee perspective Imbalance b/n financial & non financial measures ADVANTAGES Proactive approach The BSC changes over time Identify priorities Possibly gamed by employees Improve alignment of actions into strategic goals Cost benefits not known Employee & supplier contribution not entirely recognised Focus on top down performance measurements S.M.A.R.T. / C.A.M.E.L.S. / POLICY DEPLOYMENT ByTeam A4

5. Choose non financial measures that look ahead alongside financial measures that looks behind Choose measures in context to a business model or to a firm’s strategy STEPS TO MINIMISE DISADVANTIGES Trade off between generic and specific measures REMEDY Test the business model statistically to validate the measure. Measures will change over time, so all measures need to be updated periodically Anticipate how the performance measurement system will change Combine dissimilar measures : formulaic and subjective measures need to be combined Manage gaming among employees by having threshold limits for measures ByTeam A4

6. WaveRider Strategy Number 3 deployment /BSC approach ByTeam A4

7. 6/6 points have positive impact on the company Total estimated expenses: £425k Strategy № 3 Increase in operating profit due to retail price increase European market is growing and WaveRider needs to penetrate abroad to gain market share STRATEGY CHOICE JUSTIFICATION This strategy proposes re-engineering of three departments Decrease in distribution costs by changing the current distributor Source: team’s discussion ByTeam A4

8. To achieve excellence before, during and after the purchase of the world’s best RIB boats THE VISION ByTeam A4

9. Increase market share in Europe STRATEGY IMPLEMENTATION ByTeam A4

10. Strategy № 3 proposes solutions to the majority of the problems risen by the board of directors However, It does not cover Production Director’s view of introducing new products (e.g. engines, clothes, e.tc.) CONCLUSIONS It does not include measures for improving personnel’s performance as Human Resources Director pointed out that the company has the same employees since the beginning It is a short term strategy ByTeam A4

11. Bourne M. et al (2003) “Implementing performance measurement systems: a literature review”, International Journal of Business Performance Management, Vol. 5, No.1, pp. 42-57 Kaplan, R.S. and Norton, D.P. (1996) The Balanced Scorecard — Translating Strategy into Action. Harvard Business School Press, Boston, MA. Ma, Y. & Xu, X. (2004) The advantages and Disadvantages of Balanced Scorecard and It’s Application, Journal of Shenyang Normal University Social Sciences Edition. Mooraj S. et al (1999) "The Balanced Scorecard: a Necessary Good or an Unnecessary Evil?", European Management Journal Vol. 17, No. 5, pp. 481–491 REFERENCES ByTeam A4

12. Thank you ByTeam A4