The Balanced Scorecard of


Faculty of Business and Management


Accounting for decision making

ACCT 410

Fall 2013-2014

Title: The Balanced Scorecard of

Submitted to:

Submitted by:

Section A:

The Balanced Scorecard was developed in 1993 by Harvard Business School professors Robert Kaplan and David Norton; it is a strategy evaluation and technique. A Balanced Scorecard is defined as “attempt to translate the sometimes vague, pious hopes of a company’s vision/mission statement into practicalities of managing the business better at any level.” The Balanced Scorecard name comes from the need of firms to balance financial measures that are oftentimes used exclusively in strategy evaluation and control with non-financial measures such as product quality and customer service. A combination of strategic and financial objectives adjusted to the company’s business is found in a successful Balanced Scorecard. The general point of the Balanced Scorecard is to balance shareholder objectives with customer and operational objectives. These sets of objectives integrate and many even clash. For example, customers want low price and high service, which may conflict with shareholders desire for a high return on their investment. The Balanced Scorecard concept is dependable with the approaches of continuous improvement in management (CIM) and total quality management (TQM). Firms must authorize objectives and assess strategies on items other than financial measures. Financial measures and ratios are basically essential. Also, factors such as customer service, employee morale, product quality, pollution abatement, business ethics, social responsibility, community involvement are essential as well.

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These factors constitute an integral part of both the objective setting process and the strategy evaluation process. These factors can change by different organizations but along with financial measures; compose the aspect of a balanced scorecard. A balanced scorecard for a company is basically a list of all key objectives to perform forward, along with a related time dimension of when each objective is to be achieved, as well as a primary responsibility or contact person, department or division for each objective. The balanced scorecard is an important strategy-evaluation tool. It is a method that let firms to assess strategies from four perspectives: Financial Performance, Customer Knowledge, Internal Business Processes, and Learning and Growth. The balanced scorecard analysis craves that firms find answers to the following questions and apply that information, in affiliation with financial measures, to abundantly and more effectively evaluate strategies being implemented:

  1. How well is the firm continually improving and creating value along measures such as innovation, technological leadership, product quality, operational process efficiencies, and so on?
  2. How well is the firm sustaining and even improving upon its core competencies and competitive advantages?
  3. How satisfied are the firm’s customers?

734704_182694275210663_411509446_n.jpgSection B:

Name of business: Sway.Pub

Type of ownership: Sole proprietorship

Name of owner: Johnny Yammine & Roy Yammine

Name of manager: Johnny Yammine

Address: Ehden, North Lebanon. Le Serail hotel, Ehden main road

Phone: 03-773499 / 71-882337

Email: /

Brief description of the business: is an original pub concept in Ehden. It provides a special entertainment with the best alcoholic and non-alcoholic cocktails. It guaranties a welcoming ambiance for all visitors. It has outdoor seating called Sway La terrasse which allows customers to have a day experience other than the night life of the pub. Each night, Sway offers a special themed night such as DJ, karaoke, one man show, rock n roll, oud night, open wings and beer, football champions’ league nights and many more.

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The concept of is to serve coffee and breakfast in the morning, food for lunch and dinner, snacks, desserts and an alcoholic menu in the evening.

They have worked on the design and ambiance to make it attractive to all crowds. Market research was used to determine the customers’ needs and expectations of different concepts. A sophisticated sound system and lighting are available in order to spread a nice ambiance for people partying.

Year founded: 2013

Size: Small Company

Products: It offers alcoholic and non-alcoholic cocktails, food (appetizers, desserts, salads…), cold and hot beverages.

Customers: Locals, tourists, foreign visitors from all ages and genders.


For alcohol:

  1. Booze, Batroun (all types of alcohols)
  2. La Citadelle by Les Peres Carmes, Bcharre (wine)
  3. Chateau Ksara
  4. Gabriel Bocti, Beirut (Stolichnaya Vodka distributor in Lebanon) …

For food:

  1. Wooden Bakery
  2. Spicy …


  1. Magma pub
  2. Ocean night club
  3. Label night club
  4. Magnum night club
  5. Ipub (located in Zgharta but considered to be a high competitor since customers are the same due to the fact that Ehden and Zgharta are considered to be one city) …

Known strengths:

  • The pub exterior is clean and tidy
  • Prices are cheaper than the competitors
  • The style is new to the area
  • The products offered are not found everywhere
  • Many themed entertainment nights are organized
  • A branded image is offered
  • A good choice of items is available on the drinks and food menu
  • A well-trained staff is employed
  • High percentage of people drinking which leads to high profit margins
  • Offers food and other beverages in addition to alcohols

Known weaknesses:

  • The pub is new
  • Limited funds are available
  • Product offered is already available on the market
  • Lack of advertisement
  • Late nights and long hours of work
  • Legal responsibility when customers drink too much alcohols

Section C:

The balanced scorecard that we talked about in Section A will be applied to our chosen small business which is


We intend to provide our customers with the best night life experience with distinctive and creative entertainments to achieve leadership.


Our mission is to win customers loyalty and attract as many customers as we can by centering on cocktails, beverages, snacks and food. We are aiming to be a local competitor by reaching consumers through media and all other available technologies. We will aim to maximize our profits. We will be honest, caring and acting in an ethical manner and provide high quality and value. We are concerned about our consumers, employees and the community in which we operate.


  • The Financial perspective:

How does the firm look to providers of financial resources?

The need for financial data is essential in constructing a balanced scorecard. Managers will have to assure a precise on-time funding data. For our company, the financial perspectives that should be followed are:

Increase market share by attracting new customers from different areas other than Zgharta-Ehden. To avoid customer complaints, products and services must be delivered on time and efficiently. The pub must achieve cost leadership by reducing overhead expenses (fixed costs and variable costs), which will lead to high profit margins; this must be the company’s main objective.

  • The Customer’s perspective:

How do customers see the firm?

Customer satisfaction and focus are of a big concern to any business, because unsatisfied ones will shift towards competitors. The pub must attract new customers and retain existing ones by increasing customer’s satisfaction and loyalty through offering high quality and low priced products and services. The sales revenues per customer have to increase by offering diversified products not available in other pubs and by providing creative entertainment.

  • The Learning and Growth perspective:
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Can the firm continue to improve and create value for customers?

Employee training is needed in this perspective as well as providing the correct level of expertise for the job. Employees must develop and properly manage critical skills and knowledge in order to serve the customers well. Managers must provide employees with training and development before hiring them because their skills are of high importance to the pub’s reputation. Moreover, employees’ satisfaction is a must for the company since the more they are valued by their managers, the more they will be motivated to succeed and give more. The pub will grow and sustain by using good advertising especially through media.

  • The Internal Business Process perspective:

In which capabilities must the firm excel?

Managers must evaluate their business and see whether customers are being satisfied by the products served in the pub. This can be achieved by improving operational efficiency and minimizing problems through customer’s feedbacks and building proper relationship with customers. Apply all available opportunities in order to succeed in the business, such as the increase in the demand for these provided services. The pub must be fast in taking and applying business decisions; also it must have a proper work culture and achieve higher employee confidence.

  • After designing the balanced scorecard for, it should result in:
  • Improved processes
  • Motivated/Educated employees
  • Enhanced information systems
  • Monitored progress
  • Greater customer satisfaction
  • Increased financial usage

Implementing the balanced scorecard system company-wide should be the key to the successful realization of the strategic plan/vision.

  • Report on Methodology:

Interviews: -Johnny Yammine (owner and manager). Date: 3/12/2013.

-Roy Yammine (owner). Date: 4/12/2013.

Observation: Date: 1/12/2013.

Internet and Library research:

-“Strategic management” by Fred David.