Bus 475 Phase Iii

Mr. O’s Short Rib Shack-Strategic Plan: Phase III Balanced Scorecard

BUS 475

May 7, 2012

University of Phoenix – Online

REFERENCE ONLY****************

Mr. O’s Short Rib Shack-Strategic Plan: Phase III Balanced Scorecard

The balanced scorecard is an essential part of measuring success in a company. “A set of four measures directly linked to a company’s strategy: financial performance, customer knowledge, internal business processes, and learning and growth”, (Pearce & Robinson, 2009, Ch. 7, p. 202). In the following paragraphs one will describe each quadrant and how the objectives were derived from the vision, mission, values and SWOTT of Mr. O’s Short Rib Shack.

Four Quadrants of the Balanced Scorecard

Financial Quadrant

The financial quadrant will ask the question “to succeed financially, how should we appear to our shareholders?” The objectives chose are market share, revenue and costs, and profitability. Market share will be measured by the percentage of available revenue in the Seattle area at a target rate of 15%. The initiative to reach the target is to have a marketing campaign to promote Mr. O’s. Revenue and costs will be measured by the food cost as a percent of revenue with a target rate of 28% - 35% and is initiated by a strict menu selection. Profitability will be measured by the net income at a target of 30% and initiated by inventory food costs.

Customer Knowledge

Customer knowledge quadrant will express the question “to achieve mission, how should we appear to our customers?” The objectives chosen are customer return rate, customer satisfaction, and spend per customer. The measures of customer return rate are percent of customers returning within 30 days at a 50% target. The initiatives are to introduce a monthly punch card that will track customers that return within the month. Customer satisfaction is measured on percent of customers who would recommend Mr. O’s at a target of a 100%. The initiatives that are applied are to...