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CA Intermediate · Financial Management and Strategic Management · Strategy Implementation and Evaluation

Lotus Retail evaluates its strategy using a balanced scorecard. It measures the number of employees trained in new digital tools and the staff retention rate. Which balanced scorecard perspective do these measures belong to?

These measures fall under the learning and growth perspective of the balanced scorecard. Training and retention reflect employee capability and the organisation's capacity to improve. Financial, customer and internal process perspectives deal with returns, customer satisfaction and operational efficiency respectively.

  1. ALearning and growth perspectiveCorrect
  2. BFinancial perspective
  3. CCustomer perspective
  4. DInternal business process perspective

Explanation

Employee training and retention measure people capability and the organisation's ability to improve, which is the learning and growth perspective. Financial measures cover profit and returns, customer measures cover satisfaction and market share, and internal process measures cover efficiency and quality of operations.

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