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

Meenakshi Electronics evaluates its performance by looking at ROI, market share and revenue growth, and also by customer satisfaction, internal processes and learning and growth of employees. Which evaluation tool is it using?

Meenakshi Electronics is using the balanced scorecard. It measures performance across financial, customer, internal process and learning and growth perspectives, rather than financial results alone. SWOT, the BCG matrix and value chain analysis are analytical tools for formulating strategy and do not combine these four perspectives.

  1. ABalanced scorecardCorrect
  2. BSWOT analysis
  3. CBCG matrix
  4. DValue chain analysis

Explanation

A balanced scorecard combines financial measures with customer, internal business process and learning and growth perspectives. SWOT, BCG matrix and value chain are formulation and analysis tools, not performance measurement frameworks across four perspectives.

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