Introduction
The balanced scorecard is an effective strategic management performance metric applied to improve and identify internal business functions as well as external outcomes. It is beneficial in the provision of feedback and measures enabling the management to interpret and gather the necessary information. The obtained information facilitates the making of informed decisions and plays a role in enhancing organizational growth and development (Singh et al., 2018).
The model promotes the development of an effective culture and business behaviors in four areas, namely finance, customers, business processes, and learning and growth. It facilitates the provision of information regarding goals, initiatives, measurements, and objectives. This paper explores how Coca-Cola Company applied the balanced scorecard for the measurement of its strategic performance.
Strategic Performance Measurement
The company established an effective growth strategy to accelerate innovation, drive global beverage leadership as well as benefit from a balanced geographic portfolio. Moreover, the company developed a mission statement that aligned with its objectives and facilitated the declaration of its purpose. The statement provided a standard where decisions and actions could be based (Malik & Khan, n.d). This included the desire to provide value and make a difference, refresh the world and inspire moments of happiness and optimism.
The vision statement offered a framework that guides every aspect and provided a roadmap by guiding the necessary actions to support the achievement of quality and sustainable growth. The tool facilitated the provision of a favorable working environment where workers would feel inspired to achieve the best outcome. Moreover, the company focused on the establishment of a portfolio beverage brand that has the necessary features to satisfy and anticipate people’s needs and desires (Singh et al., 2018).
It achieved its objective by partnering with other businesses to nurture a winning network of suppliers and customers and eventually established an enduring and mutual value. This came together with enhancing its responsibility in supporting and building a sustainable community. It also indicated determined to be highly effective, fast-moving, and lean in all its activities.
Coca-Cola operates six main segments in Africa, Europe, North America, the Pacific, Latin America, Eurasia, as well as bottling investments. This shows that it is determined to remain a fast-moving organization and continue offering highly effective refreshments (Malik & Khan, n.d). The proposed mission focused on supporting sustainable communities and promoting long-term returns to shareowners. The company applies modern technology to offer the best product and satisfy its customers in the best way possible. It is concerned with employees, public image, survival, markets, technology, philosophy, customers, and product improvement.
The proposed vision is to refresh the world and inspire happy moments. The financial statement is a standard measure of the company’s performance since it explains stakeholders’ interest to invest with it. Since it has a strong customer base, it has an advantage over other beverage players in the market, such as Pepsi. It collaborates with its customers to enhance its supply chain and marketing process.
Summary and Analysis of the Article
Surviving in a competitive environment requires the improvement of the measurement of the most critical processes. Knowledge and performance management offers effective solutions that support continuous improvement. Performance measurement (PM) refers to the process where past actions are quantified while ensuring that the company develops effective strategies to support the achievement of its objectives and goals (Malik & Khan, n.d). It entails the key role of maintaining competitor actions and changing customer requirements. PM using a balanced scorecard facilitates the successful implementation of growth strategies.
The balanced scorecard is an effective performance management tool that influences critical success factors since it promotes knowledge innovation, creation, and sharing. It presents an integrated approach for retrieving, capturing, identifying, evaluating, and sharing information assets. It covers every aspect of stakeholders and organizational behavior depending on customer expectations, growth, competitors, legislation, and market (Malik & Khan, n.d). The tool requires the development of a mission and vision statement and an effective organizational strategy. It is necessary to understand the beneficial internal process to successfully implement the balanced scorecard.
The study involved a questionnaire survey, literature review, case study, and structured interviews. Research strategies helped develop the implementation framework and consulted database enabled the development of the Distributed Knowledgeable Performance Management System (DKPMS). This supported the analysis of diverse factors on the identified sample data. Statistical methods were applied to derive the conclusion (Malik & Khan, n.d). This shows that DKPMPS has optimistic effects on key factors such as vision, mission, customer and employee satisfaction, values, and growth strategies. Coca-Cola Company is determined to establish a free environment, support continuous improvement and business excellence.
The implementation of the performance management system considers four paradigms, namely strategy, customer satisfaction, employee satisfaction, and DKPMS. The use of a balanced scorecard has shown to present many benefits to the company, particularly continuous improvement in performance. It also improves the vision, mission, and management, and growth strategies. The tool promotes employee recognition, participation, and reward, which improves satisfaction.
Conclusion
Coca-Cola Company used the balanced scorecard to determine its strategic performance and attain efficiency in its operations. It enhanced its ability to manage its customers, finance, growth, and business activities. The tool influenced better outcomes on the overall organizational performance, manufacturing, line performance, and resource utilization. The use of a balanced scorecard has enabled Coca-Cola Company to achieve high quality of its products and realize cost-effectiveness. Overall, efficiency has been attained in all areas, including warehouse performance and packaging.
References
Malik, T & Khan, H. (n.d). Continuous Performance Measurement using Distributed Performance Knowledge Management System: A case study of Coca Cola Enterprise Ltd. The Pennsylvania State University. Web.
Singh, S., Olugu, E. U., Musa, S. N., & Mahat, A. B. (2018). Fuzzy-based sustainability evaluation method for manufacturing SMEs using balanced scorecard framework. Journal of Intelligent Manufacturing, 29(1), 1-18. Web.