Balanced score card of Walmart

BY

Arkaprava Ojha

A.Avinash

Atanu Roy

Shiv Prashad Chawdhary

Prakash

Balanced Score Card

of

The Financial Perspective

The information available is the annual report and the

financial statements. In addition, news reports of marketing

strategy, internal operations, strategy, and management

systems are also accessible.

Objectives Measures Target Initiatives

Increase

revenues/to

tal assets.

Increase

revenues/e

mployee.

Increase

return on

investment.

Revenue/tot

al assets

percent. .

Revenue/em

ployee

Return on

investment..

Increase

Revenue/total

assets by 8%

during the next

year.

Increase

revenue/employ

ee by 5 % during

next two years.

Increase return

on investment by

2% every year for

three years. .

Increase revenues;

make a more

thorough use of

assets.

Increase employee

efficiency through

training and

technology.

Reduce operating

costs, and achieve

economies of scale

through bulk

purchases.

• The three objectives are Increase revenues/total assets ;

Increase revenues/employee and Increase return on

investment.

• The strategy of Wal-Mart is cost leadership; increasing

revenues/total assets is a strong indicator of cost

reduction. Further, increasing revenues/employee will

also help maintain its cost leadership.

• Finally, Increase return on investment will be possible only

if Wal-Mart controls its costs. Each of the financial

objectives is related to the strategy of Wal-Mart.

The Customer Service Perspective

Increase

average

customer size

of Wal-Mart.

Increase

customer

rating of Wal-

Mart

Reduce

number of

customer

complaints.

Average

customer size.

Customer

rating.

Customer

Complaints.

Increase customer

size by 5% every

year for next five

years.

Increase customer

rating by 10% in

one years’ time.

Reduce the

number of

customer

complaints

received by 4%

every year for

three years.

Provide a wider

variety of

products to

customers.

The prices at Wal-

Mart should be

the lowest in the

market.

Improve quality

control of

products stocked

and improve

customer service.


• The three objectives are increasing average customer size

of Wal-Mart, increasing customer rating of Wal-Mart, and

reducing the number of customer complaints.

• The Mission is to help save money so that they can live

better. If Wal-Mart helps customers save money, the

customers will buy more from Wal-Mart.

• If Wal-Mart helps customers live better, they will give an

improved rating to Wal-Mart. If the customer save money

and live better, then there will be fewer complaints against

Wal-Mart


Reduce

administrative

expense/total

revenues.

Reduce lead

time from

online orders

to delivery.

Reduce

waiting time

for customers

at counters.

Administrative

expenses/total

revenue.

Average time

taken.

Average

waiting time.

Reduce

Administrative

expenses/total

revenue by 2%

every year for

next five years.

Reduce time taken

by 5 % in every

year for next three

years.

Reduce the

average waiting

time by 15%

within one year.

Train the

employees so

that they

become more

efficient.

Use automatic

packing and

handling

technology for

speeding up.

Change the

layout of the

store so that

more checkout

counters are

opened.

The Internal Process Perspective

• The three objectives are reducing administrative expense/total

revenues, reducing lead time from online orders to delivery at Wal-

Mart, and reducing waiting time for customers at counters.

• The strategy of Wal-Mart is cost leadership; reducing administrative

expense/total revenues will help Wal-Mart reduce costs.

• If Wal-Mart helps customers live better, it must make faster deliveries

and reduce waiting time for customers.

• Reducing waiting time for customers frees their time and enables them

to live better.


Increase

training hours

per employee.

.

Reduce

employee

turnover rate.

Increase use of

employee’s

view

Average

training hours

per employee.

Employee

turnover rate.

Empowerment

index.

Increase

training hours

per employee by

5% each year for

the next three

years.

Reduce

employee

turnover rate by

3% each year for

next thee years.

Increase

empowerment

index by 5%

every year for at

least three years.

Hire outside

trainers. Managers

should increase

their time spent

for training.

Increase employee

participation in

decision making.

Also, increase job

rotation.

Give more

decision making

authority to

employees.

The Learning And Growth Perspective

• The three objectives are Increase training hours per employee at Wal-Mart; Reduce employee turnover rate at Wal-Mart, and Increase use of employee’s view .

• The strategy of Wal-Mart is cost leadership; reducing employee turnover rate will lead to cost reduction.

• Further, Increasing training hours per employee will make employees more efficient and so will lead to cost reduction and better prices to customers.

• Finally, Increase use of employee’s view will provide greater initiative from employees to reduce costs.

• Empowered employees will be motivated employees and will help Wal-Mart control its costs.

Balanced score card of Walmart

Education