Because the Organization’s Vision and Strategy Lie at the Heart

question 151

Essay

Because the organization’s vision and strategy lie at the heart of the balanced scorecard, the first step in developing the scorecard is to clarify the strategic focus. As part of this process, organizations may develop a strategy map.

Required:

a. What is a strategy map?

b. Discuss the process of building a balance scorecard.

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Definitions:

Total Costs

The sum of all costs incurred by a business in producing goods or services, including both fixed and variable costs.

Units

A measure of quantity used to quantify the amount of production output, inventory, or sales.

Variable Costs

Expenses that change in proportion to the production or sales figures.

Per Unit

A measure or cost expressed per single item or quantity of a product or service.