Balanced Scorecard in Action
The main aim of establishing a business is to generate profit through the provision of quality products which meets the needs of the target market. Stellar Solutions, which deals with the provision of aerospace engineering services, is a great example of a company that produces quality products to meet the needs of its target market. Stellar Solution is an international provider of system engineering in projects driven by government and private institutions. The company has employed some workers who are ranked according to their skills, and in some cases, the owner is called upon to outsource from other companies. The benefit the owner can generate by strictly following the balanced scorecard tool is an increase in the quantity and quality of work each person does in a day. The evaluation by the use of the BSC method gives the worker a chance to express their innovative ideas, and this leads to the development of the company (Kaplan & Norton, 2016).
The financial growth of a company is achieved by minimizing the expenses incurred during work time and increasing revenue. The Stellar Solution management works towards the provision of best services to their customers, and at the same time, they ensure that the resources are well utilized to avoid waste. Making proper use of available raw materials in the company saves on the cost of buying the same in the future thus adding up on the profit realized by the company. Responsible employees dramatically assist the company to pool together the available resources in the right way.
Stellar Solutions provides high technical system services to their customers to ensure they are satisfied with their work. So far, the company has not received many complains from potential customers regarding the services delivered to them. It shows that customers assist the company to achieve their set objectives in a given time frame. Stellar Solutions ensures that their performance in the marketplace is commendable and meets the set standards thus attracting as many consumers as possible. Stellar Solutions works to meet the critical needs of their clients rather than focusing on what their competitors are offering in the market. The strategy has assisted the company to emerge the winner of the Baldrige Award since consumers are the key determinants of the success of the company (Schaefer, 2018).
According to BSC, any business aims to provide the best in the marketplace and end up generating more profit from their services. The BSC method works to ensure that the company makes proper use of resources they have to the maximum for the betterment of their success. The Stellar Solutions ensures that the company moves with the trending technology and they are useful at innovating unique ways of delivering their services (Scott, 2017). Although Stellar Solutions is a small business, they are focused on growing their company to a well-known international provider of aerospace engineering services.
According to the BSC method, the growth of the company is dependent on how employees perform their duties. The award-winning company Stellar Solutions, employees skilled, and focused individuals who are always ready to learn. The workers attend regular workshops to assist them to perform better in their line of duty. It assists the company to be updated in the way they offer their services to their consumers (Schaefer, 2018).
The Stellar Solutions is a small company, and during its operation, it faces some weaknesses, challenges, and risk in their activities. The company experiences challenges in hiring employees with the right experience and skills in their locations, since it is hard to identify if a worker will deliver quality work (Scott, 2017). The risk faced by Stellar Solutions is the inability to forecast the company’s future success since data collection is an expensive task to conduct. One of the significant weaknesses faced by the company is that sometimes the management is called upon to outsource some service from other companies and this brings about the competitive environment.
Kaplan, R. S., & Norton, D. P. (2016). Using the balanced scorecard as a strategic administration
Schaefer, C. (2018). Celebrating the 2017 Baldrige Award Winners!.
Scott, L. (2017). Stellar Solutions.