Walmart’s Balanced Scorecard

            Introduction

An organization’s balanced scorecard can best be described as the organized planned method that is applied in evaluating planned projects (Mupepi & IGI Global, 2017). This report presents a detailed scorecard with respect to Walmart’s market expansion project into Vietnam electronic specialty market. The scorecard is comprised of four different sections which are connected directly to the approach of the organization. This includes financial, consumer, internal process and lastly growth and learning performance perspectives. This component serves as the primary control of the expansion strategic plan for Walmart. So that Walmart can venture into a valuable and growing business developing a well-balanced scorecard is a necessity. This strategic approach will evaluate the value of the expansion and its general impact on the company and its stakeholders. While considering the company’s mission and vision of the company which is grounded on affordability and consumer satisfaction it is apparent that a balanced strategic approach will lead directly to the success of the firm.

General Objectives

The scorecard demonstrates the various option that Walmart can utilize based on their successes and benefits. The objective is to create maximum positive impacts in all the measures while evaluating the associated threats. This strategy will be useful to Walmart to create a plan that will best contribute to the anticipated outcomes. This, therefore, implies that the firm must be willing to make adjustments in order for success to be achieved (Mupepi & IGI Global, 2017). Some of the objectives include increasing shareholder’s market share, consumer and employee’s satisfaction, increase market share and sales and create positive relationships.

Balanced Score Card for Walmart Inc.

Perspective	Aim	Measures	Targets and initiatives
Financial performance perspective	Increase market share	Develop consumer share by at least 8 percent every year.	Create better communication
	Competitive positioning
Consumer perspective	Consumer’s demands concentration	Rise consumer satisfaction  by 25%	Provide high quality services and brands
	Provide consumer oriented products
Internal Processes perspective	Reduce  production budget	Rise productivity by 20% and reduce cost by 20%	Develop strategic procedures.
	Increase productivity
Learning And Growth perspective	Augment satisfaction – employees and consumers	Rise satisfaction by 15%	Implement benefits and rewarding programs
	Decrease turnover rate

 

Financial Performance Perspective

Walmart’s mission is to save individuals money so that they may live more quality lives while its vision is to be the finest retailer in the hearts and minds of the buyers and workers (Galka & Baran, 2016). The company is mainly focused on becoming the leading retailer in terms of convenience, affordability, and quality in the globe which can best be achieved through performance improvement.  It is thus, the accountability of the entire form to focus on consumers and workers satisfaction, and financial growth. The objective of the firm is to attain consistent financial findings by leveraging increased research and market expansion for the electronic specialty which the expansion in Vietnam is focused on (Mupepi & IGI Global, 2017). For this expansion, the organizational objectives are based on sales revenue, net profit, and observation of professional and ethical standards in developing financial statements and reports. In order for Walmart to increase shareholder’s value, Walmart is required to enhance its working performance via asset application in addition to increasing revenues and exploiting shareholder’s returns.

The company should be focused on employees satisfaction by offering them adequate training and salaries but also lowering the operating expenses (Galka & Baran, 2016). The company must focus on halting any operations that might not directly increase revenue generation. The obtainment of this financial breakthrough will be in alignment with the mission and vision of the firm whose performance demonstrates that financial flow is positive and all the operating expenses on the expansion are satisfactory. Solvency of this investment will be reflecting the financial stability that is objected by the company. This will also be indicating the potential of the electronic business to remain stable in meeting its requirements. High solvency ratios will be a sign of financial soundness. The company will also focus on achieving financial stability by sustaining reporting principles and standards so that litigations that can heighten its expenses can be avoided. The goal is to comply with the set laws and conduct guidelines that will improve the company’s ability to expand its electronic market and sales without disruptions that might affect its opportunities and sales (Galka & Baran, 2016).

Customer Perspective

The target consumers of Walmart firm in Vietnam are from diverse socio-economic backgrounds and perceptions and the objective is, therefore, is to ensure that there are the primary for increased success and sales. The company will seek to provide quality, affordability and convenient values for consumer’s satisfaction. The consumer-oriented goals are aimed at exploiting on an extensive consumer base that is particularly composed of low and middle-income classes’ individuals (Sathi, 2014). The concentration of the large consumer base can be controlled to act as the best example of the sector and thus enhance competitive positioning for the firm in a very lively market (Mupepi & IGI Global, 2017). One of the primary objectives is to raise the market share for the firm via attracting more consumers. The capability to control a prevailing market is likely to generate higher profits for any firm who products are utilized in the market. The objective of the firm is to increase the market share by about 6 to 8 percent every year.

In order for this objective to be achieved this will require the firm to focus on more innovation, authoritative consumer relationship and controlling the competitors (Sathi, 2014). This will be essential in motivating and enticing individuals to purchase the products. Innovation and consistent supply is the primary strategy that the company will use in increasing the general consumer base. Besides affordability which will be utilized to attract consumers who are very sensitive of prices diversification and differentiation will also be applied. When diverse technology brands are introduced in the market by the company which can never be complemented by the existing competitors due to their limited resources, most consumers with the will to own this brands will purchase them over those from the competitors (Nasir, 2015). The use of affordability, convenience, and quality values will seek to convince consumers of the commitment of the firm. Through creating strong relationships with the consumers the firm will be guarding and expanding its market share (Nasir, 2015). This is because consumers are satisfied and acquires a positive experience when they feel that their needs are addressed by the firm. A positive image will be created which will serve as a form of marketing something that the company needs to create awareness and familiarity. Ultimately consumer satisfaction and retention will be achieved by guaranteeing quality and commitment to the consumers (Nasir, 2015).

Learning and Growth Perspective

The learning goal is an essential aspect that is needed in ensuring that the set aims are achieved (Weihrich, Koontz & Cannice, 2013). The necessity for employees training is informed by the fact that there is a need to ensure that the workers are always motivated by creating a feeling of growth in regard to their career which will motivate them to remain in the organization. The objective is thus, to initiate learning initiatives that will enhance their talents in the innovation surrounding that is changing progressively. This programs will improve the skills and knowledge of the workers thus fulfilling their professional desires and augment their performances in meeting the needs of the consumers (Weihrich, Koontz & Cannice, 2013). This will incorporate evaluating the existing gaps and inspire the staffs to master their potentials for the success of the company. An additional aim is to reduce the turnover rate in the firm which can directly affect the performance of the firm especially if the best skills are lost. Reducing turnover will also support the objective of minimal operating expenses in general (Conaway & Laasch, 2014). Some other motivation strategies that will be utilized include compensation and reward. With high performance among the workers then the satisfaction of the consumers and high value for the shareholders will be guaranteed.   

Internal Process Perspective

The company is required to focus on minimizing operating expenses on the ground of both production and promotion. In that, there is a need to focus on internal efficiency in order to achieve high values (Conaway & Laasch, 2014). The objective of Walmart is to be an organization that adopts innovation internally. In that supply and operations processes will all be managed through the use of innovative technology which is aimed at ensuring operating efficiency. In order for this to be achieved the company will create a culture that promotes teamwork and innovation since the business will be dealing with technology products thus technology changes should be well understood. The other aim is to consistently diverse and improve technology products that are provided by the company to outweigh the competitors. This strategy will be providing the consumers with more selection options (Conaway & Laasch, 2014).

Conclusion

For Walmart developing a well-balanced strategic scorecard will be beneficial for the market expansion project. In that, the company is required to assess the risks and benefits of the market. Based on the above analysis addressing the four measures recommendations will be useful for the firm in increasing its performance as well as growing all other areas of the firm. A more strategic approach is essential in creating processes efficiency and organizational success thus leading to satisfied consumers and high sales.

References

Conaway, R. N., & Laasch, O. (2014). Principles of responsible management: Global sustainability, responsibility, and ethics. South Western.

Galka, R. J., & Baran, R. J. (2016). Customer Relationship Management: The Foundation of Contemporary Marketing Strategy. Taylor & Francis. 401-403

Mupepi, M., & IGI Global. (2017). Effective talent management strategies for organizational success.24-27

Nasir, S. (2015). Customer relationship management strategies in the digital era.

Sathi, A. (2014). Engaging customers using big data: How marketing analytics are transforming business.152

Weihrich, H., Koontz, H., & Cannice, M. (2013). Management: A global, innovative, and entrepreneurial perspective. McGraw Hill.