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ACCA Strategic Professional · Strategic Business Leader · Enabling success: performance excellence

Medina Retail has strong financial results, but its board suspects that reliance on profit and sales growth alone gives a short-term view. It wants a framework that also covers customer satisfaction, internal process efficiency and employee learning and innovation, linking them to strategy. Which approach best fits?

The balanced scorecard fits best. It combines financial measures with customer, internal process and learning and growth perspectives linked to strategy, which addresses the board's concern about relying solely on short-term financial results.

  1. AThe balanced scorecardCorrect
  2. BA traditional variance analysis system
  3. CPorter's value chain analysis
  4. DLewin's force field analysis

Explanation

The balanced scorecard (Kaplan and Norton) complements financial measures with customer, internal business process and learning and growth perspectives, tied to strategy. Variance analysis is financial and backward-looking, the value chain analyses activities for competitive advantage, and force field analysis supports change management.

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