Porter's Five Forces And Norton's Balanced Scorecard

Words: 1312
Pages: 6
Open Document
Strategy is fundamental in an organization's overall performance. The strategy selected depends upon numerous factors. The environment has a direct influence on the relationship between strategy and performance. The combination of several factors contributes to the strategies chosen and influence the performance of an organization. The current dynamic and competitive business environment influences companies to survive, grow and be profitable as an essential goal for all industries. Organizations are challenged by identifying the benefits and limitations of Porter's Five Forces and Kaplan's and Norton's Balanced Scorecard. These powerful strategic management tools can be linked to interact with each other. Porter's work can facilitate …show more content…
It does not mean that Porter's theories are invalid, but when the model is adopted there must be an understanding of its limitations to use it as part of the management techniques, tools and theories. Kaplan's and Norton's Balanced Scorecard however, is an organizational framework for implementing strategies at all company levels combining strategy objectives and measures. Integrating key performance indicators with financial measures the scorecard can provide an enterprise view of an organization's overall performance. The balanced scorecard purpose is to provide a measuring tape by which someone can determine whether the goals have been met or exceeded. Balanced Scorecard allows companies to bridge the gap between mission statement and how the day to day activities support the company's mission and objectives. The balanced scorecard can also provide a visual mean of demonstrating how different goals are related, it is a beneficial tool to assist management to better communicate the strategy, to motivate and prioritize the team to common and long term goals. By using the balanced Scorecard approach, the immediate future is not the only thing being evaluated, it allows stakeholders determine the health of short, medium and long term objectives at glance. The balanced scorecard methodology helps leaders move from reactive to proactive mode. A good scorecard contains not only outputs or result metrics, but also metrics that provide insight about
Show More

Related Documents: Porter's Five Forces And Norton's Balanced Scorecard

Essay on Human Resource Management and Decenzo / Robbins Chapter

Resource Planning and Job Analysis Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 5, slide 1 Introduction Human resource planning is a process by which an organization ensures that  it has the right number and kinds of people  at the right place  at the right time  capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives Fundamentals of Human Resource Management, 10/e…

Words 1419 - Pages 6

Ind: Strategic Management Process Essay

health care organization's culture, working environment and employees," (p. 1). The health care environment changes daily. Daily changes creates a concern to employ strategic planning into the industry. Success occurs with the positive involvement of all participants. Major Components of Strategic Management Strategic planning involves five essential components. According to Simply Strategic Planning (2005), " engaging commitment, setting long term strategic objectives for improved performance of the…

Words 909 - Pages 4

Resource Dependency Theory

refers to tangible and intangible assets organizations use to develop and implement their strategies. An organization’s resources can include many aspects of the organization for example, physical, financial assets, individual, IT, partnerships, relationships and organizational capital (Lewis & Kipley, 2012, para 2). An organization’s critical resources refer to those assets within the sphere of organization’s critical information and infrastructure (Maloor, 2012). To assess the capabilities of an…

Words 913 - Pages 4

Tutorial 1 Managing The Service Encount Essay

have been properly acknowledged. I have read and understood the statement relating to academic dishonesty and plagiarism published in the ‘Department of Strategy and Organisation Undergraduate Handbook’ on My Place. I hereby confirm that this assignment complies fully with these guidelines.”…

Words 849 - Pages 4

Essay about Strategic Management Notes

Johnson, G., Scholes, K., & Whittington, (2011) Exploring Strategy**, 9th ed, Harlow: Prentice-Hall Chapter 1: Introducing Strategy I: What is strategy? * Strategy is the long-term direction of an organization a) Defining strategy Defining strategy as the long-term direction of an organization implies a more comprehensive view than some influential definitions. 1. Chandler emphasizes a logical flow from the determination of goals and objectives to the allocation of resources…

Words 4893 - Pages 20

Cs01 Ppt01st Essay

Chapter 1 Introducing Strategic Management OBJECTIVES 1 Understand what a strategy is and identify the difference between business-level and corporatelevel strategy 2 Understand the relationship between strategy formulation and implementation 3 Describe the determinants of competitive advantage 4 Recognize the difference between a fundamental and a dynamic competitive advantage 5 Understand why we study strategic management 2 A TALE OF TWO STORES Sears launches catalog business Takes control…

Words 1526 - Pages 7

Human Resource Plan Essay

to adapt to external and internal changes. External changes such as economic situations, increased global commerce, new security threats or emerging environmental priorities impact directly on the organization’s business and HR plans. Internal changes, such as the need to carry out the organization’s business differently through risk management systems or a shrinking pool of skilled employees in our workforce, have equally important impacts on KIN’s business and HR plans. KIN must ensure that…

Words 2909 - Pages 12

Essay about Management: Organizational Culture- Clan

done.” Hierarchy oriented cultures are structured and controlled, with a focus on efficiency, stability and “doing things right.” Three levels of organizational culture- Observable facts- facts consist of the physical manifestation of an organization’s culture. Organizational examples include acronyms, manner of dress, awards, myths and stories told about the organization, published lists of values, observable rituals and ceremonies, special parking spaces, decorations, and so on. Espoused…

Words 1410 - Pages 6

Strategic Mobility Planning Positioning Your Organization For The Future

mobility strategy is a journey towards providing the right type of access to information to the various stakeholders within an organization whether it be portable access, mobile access using one device on one type of network, or seamless access, regardless of device or network. The various levels of mobility provide varying degrees of flexibility and extendibility of the information. A solid IT strategy is important for a company to achieve its vision and be successful. Business strategies and IT strategies…

Words 4137 - Pages 17

Diversity Managment Essay examples

1. Introduction 2 marks Diversity management is a strategy for enterprises to utilize human resources required for building competitive advantages in a market environment or a technology structure where they are placed. It is important for enterprises to strategically utilize human resources as a part of the management strategy for the purpose of enhancing their competitiveness rather than promoting welfare and corporate social responsibility. Globalization and other market environment changes…

Words 1283 - Pages 6