Integrated Business Topics

1 Strategic Plan, Part III: Balanced Scorecard Rebecca Lanham BUS 475- Integrated Business Topics August 1, 2011 Phyllis Koch 2 Balance scorecard is essential for developing a healthy business growing place. This is a vital key for defining the goals and targets of a company as well as the vision, mission, and the SWOTT Analysis. A Balanced Scorecard is, “A set of four measures directly linked to a company’s strategy: financial performance, customer knowledge, internal business processes, and learning and growth” (Pearce and Robinson, 2009, p. 202). This term paper will relate Sweet Creations values, mission, vision and SWOTT Analysis with the four perspectives of the scorecard (financial performance, customer knowledge, internal business process, and learning and growth). Financial Perspective/Shareholder Value A strong and well defined vision and mission statement will facilitate the company to achieve its target. The objectives of Sweet Creations should be implemented as a daily routine so as to increase the performance of the company. The first and foremost responsibility of a company is to seek its customer satisfaction, benefit utilization, increased net revenues, and also to achieve financial stability. To evaluate the financial stability of a company, one should calculate the Operating cost, Earnings per share, growth revenue and return on interest and capital. “If we succeed how we will look to our stakeholders” (BSI, 2009, 5). Customer Value Perspective The customers determine the success of the company. The ups and downs in the market share of the company as well as the delivery of services and products relates to the customer satisfaction. The more the customer satisfied and engage with the company, the more will be the increase in the brand image in the market, but there must be consistency in the value and quality of the product. It is the responsibly of Sweet Creations to generate awareness in the public and 3 should also offer benefits to them, time to time. “To achieve our mission, how must we appear to our customers” (BSI, 2009, p. 5). The company should organize survey, time to time, so that to have an idea of the customer’s taste. For this the company has to monitor their brand value in the market constantly. On of the most important tool of obtaining more and more customers engage with the company, the holders of the company should introduce new products at a very low price and also offers some rewards for the regular customers. A way to gather the attention of the customers is to introduce reward programs before them; this will look very attractive to them. If the company and employees performance reviews by the customers are in the favor that means the company is strong enough to hold its position in the market. Just in case, if the customer reviews are poor regarding the service and the performances of the employees, this will lead a company to a huge downfall. Process/Internal Operations Perspective Strategic planning is very effective to give a sweeterie to customers. It should be done in accordance with the customer’s need and satisfaction. To improve the business efficiencies, market value as well as the current position; one should has an effective strategic management to over come all the resistances. The most important thing is to define the purpose or intention of the strategy because this will lead a company smoothly toward its goals. The goals highlight the vision and mission statement of the company. “To satisfy our customers, at which processes must we excel” (BSI, 2009, p. 5). For the satisfactory outcome of the company the strategic objectives and goals should be monitored on a daily. The company should set its objective, and the path to be followed while keeping in minds the values and interest of the customers. There should be a tool or set of

BUS | 475 | Integrated Business Topics | study guides | 1 Strategic Plan  Part III: Ba

C.Ensure internal controls are reliable and eﬀective, corporate executives must independently review internal controls, and submit all ﬁnancial statements to the Public Company Accounting Oversight Board D.Maintain an adequate system of internal controls, provide additional training to managers and accountants regarding internal controls, and publish internal controls on the companyâs public website D. The correct answer is: B. 16 16. On July 1, 2014, Linden Company purchased the copyright to Norman Computer Tutorials for $140,000. It is estimated that the copyright will have a useful life of 5 years. The amount of amortization expense recognized for the year 2014 would be A. $28,000 B. $13,125 C. $25,900 D. $14,000 The correct answer is: D. 17. ABC Corp. receives a 7-month interest-bearing promissory note in the amount of $360,000 on February 1. The interest rate is 15%. What is the total interest expense ABC Corp will record assuming ABC makes all of its payments? A. $54,000 B. $31,500 C. $4,500 D. $36,000 The correct answer is: B. 18 18. Logan Corporation issues 50,000 shares of $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to cash for $3,000,000 and a credit or credits to A. preferred stock of $3,000,000 B. preferred stock for $2,500,000 and paid-in capital in excess of par valueâpreferred stock for $500,000 C. preferred stock for $2,500,000 and retained earnings for $500,000 D. paid-in capital from preferred stock for $3,000,000 The correct answer is: B. 19 19. Which of the following tools of analysis is used to evaluate ﬁnancial statement information by expressing ﬁnancial statement data as a percentage over a base amount? A. Vertical analysis B. Horizontal analysis C. Ratio analysis D. Industry averages The correct answer is: A. 20. The SarbanesâOxley Act of 2002 requires publically-traded U.S. companies to provide great internal controls. The ﬁve primary components of an internal control system include: a control environment, risk assessment, information and communication, monitoring, and A. Establishment of responsibility B. Segregation of duties C. Control activities D. Human resource controls The correct answer is: C.

BUS | 475 | Integrated Business Topics | exam | C.Ensure internal controls are

University_of_Phoenix_-_BUS_475_Week_2_Knowledge_Check.pdf-Week 2 Knowledge Check 19/19 Score:

of the sample was 1.7 years. Assuming that the populaon standard deviaon is unknown, the 99% conﬁdence interval within which the populaon mean lies is approximately between ___________ and _________years. Answer: 6 and 7 36. Penn Corp. acquired a truck to haul widgets between its manufacturing facility and its sales oﬃces. Penn acquired the truck for $55,000. Penn sold the truck years later for $15,000. Before the year of the sale, Penn had depreciated the asset by $32,000. Penn depreciated the truck by another $2,000 during the year it was sold. Does Penn record gain or loss on the sale and how much? Answer: Gain of $6,000 37. In the stockholders equity secon of the balance sheet, the cost of treasure stock is deducted from the following: Answer: Total stockholders’ equity 38. The following is an example of an unethical acon commied by ABC, Inc.’s accountant, Fred Anderson. Answer: Anderson’s supervisor asks him to inﬂate income for the current period to make the company appear more proﬁtable. 39. The Oviedo Thespians are planning to present performances of their Florida Revue on two consecuve nights in January. It will cost them $5,000 per night for theater rental, event insurance, and professional musicians. The theater will also take 10% of gross cket sales. How many ckets must they sell at $10.00 per cket to break even? Answer: 1,112 40. In horizontal analysis, each item is expressed as a percentage of the following: Answer: Base year amount 41. Cargill, Inc. is ﬁnally earning a proﬁt on the unique product it introduced 6 months ago. Cargill's adversing is both informave and persuasive. Much money is being spent on place development. There is lile price compeon, although several competors have come out with reasonable imitaons. Total industry sales and proﬁts are both rising. In which stage of the product life cycle is Cargill operang? Answer: Market growth 42. The main reason that vercal markeng systems are becoming more common is that Answer: ﬁrms recognize that coordinaon among channel members can increase sales for each channel member. 43. What principle dictates that eﬀorts (expenses) be recorded with results (revenues)? Answer: Expense recognion principle 44. H&R Block wants to analyze its clients’ tax returns over the past 10 years for each of the client’s tax ﬁlings. The type of data generated will be ______________. Answer: me series data 45. If a country's trade deﬁcit increases, then Answer : its consumpon must be rising relave to its producon . 46. Which of the following will decrease the nominal deﬁcit? Answer: An increase in taxes 47. Internal control is used in a business to enhance the accuracy and reliability of its accounng records and to Answer: safeguard its assets 48. P. Noel's Inc.'s current rao is 2. Current liabilies are $500,000. P. Noel's current assets equal __________ and net working capital is __________. Answer: $1,000,000 and $500,000 49. To decrease the naon's money supply, the Fed can Answer: increase reserve requirement

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