CA Intermediate · Financial Management and Strategic Management · Strategy Implementation and Evaluation
Kaveri Auto Components Ltd. wants a measure of performance that goes beyond financial results. Its board reviews indicators under four headings: financial, customer, internal business process, and learning and growth. Which evaluation tool is the board using?
The board is using the Balanced Scorecard. It evaluates performance from four perspectives: financial, customer, internal business processes, and learning and growth. This gives a broader view than financial results alone, unlike portfolio, organisational alignment or value-chain tools.
- ABalanced ScorecardCorrect
- BBCG growth-share matrix
- C7S framework
- DValue chain analysis
Explanation
The Balanced Scorecard measures performance through four perspectives: financial, customer, internal business process, and learning and growth. The BCG matrix classifies business portfolios. The 7S framework examines organisational alignment of seven elements. Value chain analysis studies internal activities for competitive advantage.
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