Others also rely on the company as well -- suppliers, partners and customers in particular. All of these stakeholders have a stake in the outcomes of the company, so therefore management should take their needs into account when making decisions.
Stakeholder theory has also been extended to more tangential stakeholders, such as local governments, local populations and the environment. Critical to this thinking is that any person, body or even locality that is affected by the actions of the firm should be given due thought when the company is making decisions. The environment is a good example of this, because the company operates in a given community and destroying the environment of that community does affect the company as well. The outcome of the extended stakeholder approach is that managers need to take a wider variety of concerns and outcomes into consideration in their decision-making processes.
It has also been argued by some that by taking a broader stakeholder perspective, the financial perspective benefits as well. Actions that produce...
Financial Perspective Case Analysis: Despite having an exceptional pace of growth throughout the early years of their existence, Saatchi & Saatchi is facing client attrition and declining revenues. What had happened through their continual restructurings was the corporation lost track of their core vision, mission and values. The distance between these three core attributes of their business and financial performance had drifted apart so far that financial results were showing the increasingly
BALANCED SCORED CARD & THE FINANCIAL PERSPECTIVE The Balanced Scorecard & the Financial Perspective CCRC (Cattaraugus County Rehabilitation Center) is a non-profit organization that focuses on the rehabilitation of disabled people in order to improve their quality of life. The organization also delivers the comprehensive services for disabled people to achieve maximum independence. Similar to the for-profit organizations that used balanced scored to maximize their revenues, the Center also attempted to use
TESCO BSC Tesco Balanced Scorecard FINANCIAL PERSPECTIVE MEASURES MEASURES Growth Market share More stores, more locations Sales volume Online sales volume Profitability ROCE measures Variety Product channels Costs/profit margins Affordability Price comparisons Security Debt reduction INTERNAL Business PERSPECTIVE LEARNING/INNVATION PERSPECTIVE MEASURES MEASURES Integrity Cultural consistency Development Training expenditures Middle-management promotion levels Consistency Staff retention Reporting regularity Diversification Changes in department outputs Explanation and Justification of Proposed Measures From the financial perspective, the company has set itself goals of continued and even stronger growth, and profitability is also specifically mentioned by the CEO in his review of the company's 2011 annual report (Tesco, 2012). Likewise,
high-quality healthcare services to families with children suffering from a broad range of developmental disabilities is a challenging enterprise in any setting, but the constraints to productivity faced by Cattaraugus County ReHabilitation Center were daunting indeed. The Center had grown to include a number of organizations that provide specialized care to disabled children, but it had outgrown its old business model when a Balanced Scorecard initiative was implemented. This
Balanced Scorecard Blogger Balanced Scorecard Financial Perspective Customer Perpsective MEASURES MEASURES Don't drag Costs Ease of use Complaint/question rate Contribute Cash flow, profit margin Innovation Percentage of users adopting new features Rate of additional feature additions Generate Percentage of parent's total revenue Integration Reported problems adding additional non-Google components Reported problems with Google components Frequency of use with various applications Internal Business Pers. Innovation/Learning MEASURES MEASURES Increased crossover Rate of adoption of other google products by Blogger Usability focus Customer feedback Rate of Blogger adoption by users of other products Continuous in-house testing and review Ad embedding Click rate for Google-placed ads Marketing
According to these analysts, "The implicit assumption underlying the price-to-earnings method is that the fair market value of the closely held business can be approximated from the market value of comparable publicly traded businesses. To implement this method, the valuator must be able to identify a set of presumed-to-be comparable publicly traded companies and obtain sufficient information on each to verify the extent of comparability from an economic, management,
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