Target Balanced Scorecard

Target Balanced Scorecard

University of Maryland University College

Author Note

This paper was prepared for AMBA 630 Section 7641 taught by Dr. Crosdale

Abstract

Managing an organization requires that managers be able to view performance in several areas simultaneously. A balanced scorecard, or balanced set of measures, provides valuable information that a corporation can use. A balanced scorecard is used to measure organizational performance by focusing on internal or process performance and looks at different factors such as return on investment, market share, earnings per share, or size of the budget for the fiscal year. These factors alone do not provide a full perspective of an organization’s performance that a manager needs to manage effectively. By balancing internal process measures with results and financial measures, managers will have a more complete picture and will know where to make improvements. What follows is a look at Robert S. Kaplan and David P. Norton’s developed set of measures that are referred to as a balanced scorecard and how the Target Corporation uses the four perspectives which consist of: (i) financial, (ii) customer, (iii) internal, and (iv) learning and growth to manage the company.

Industry Analysis

The retail industry is the second largest industry in the world, in regards to both the number of establishments, as well as the number of employees. As a whole, the industry generates an estimated $3.8 trillion dollars annually (www.thestatisticsportal.com). The top five organizations within the retail industry are Wal­ Mart, Home Depot, Kroger, Target and Costco, respectively. The Minnesota-based company, Target, continues to focus on domestic growth and posted a 3.4% retails sales growth concentrating on a more affluent market in the U.S., while its competitor Wal-Mart currently has a different market scope that reaches beyond the United States and into international territory and posted a 4.36% growth (Zacks...