GE Turbines and Balanced Scorecard Essay

A balance scorecard is essential for developing a healthy business growing place. It is a vital key for defining the goals and targets of a company as well as the vision, mission and the SWOTT Analysis. A balanced scorecard is, â€Å"A set of measures that are directly linked to a company’s strategy: financial performance, customer knowledge, internal business processes, and learning and growth† (Pearce & Robinson, 2013, p. 194). This company will relate the in-building turbines values, mission, vision and SWOTT Analysis with the four perspectives of the scorecard (financial performance, customer knowledge, internal business process, and learning and growth. Financial Perspective/Shareholder Value A strong and well defined vision and mission statement will facilitate this company to achieve its target. The objectives of the in-building turbines should be implemented as a daily routine so as to increase the performance of the company. The first and foremost responsibility of a company is to seek its customer satisfaction, benefit utilization, increased net revenues and also to achieve financial stability. GE being a financially stable company already gives this new product line a head start for the investors to trust this product. In order to evaluate the financial stability of a company, one should calculate the Operating cost, Earnings per share, growth revenue & return on interest and capital. The shareholders of GE should be very excited for this new line because if it is as successful as hoped for, the stock for the shareholders could see multiple splits happening for GE stock in the near future. These splits will double the already invested, as well as lower the cost per share for new investors. Customer Value Perspective The customers will determine the success of the company. Customer satisfaction must remain at the top of the list for this company in order to see it grow in both demand and profitability for GE and their shareholders.  With the approach of letting the customer have constant monitoring capabilities during the fabricating process of their turbine orders, the more the customer will be engaged with the company and satisfied with the product. This type of approach should also increase the image for the turbines in the market. there must be consistency in the value & quality of the product. It’s the responsibly of GE and their new division to generate awareness in the public and should also offer benefits to those customers who believe in the product during its infancy. The in-building turbine company will also implement a survey board on the website in order to constantly better themselves based on the customer’s desires. The company will monitor their stock share value in the market constantly. By doing this it will allow for GE to offer special promotions on the turbine purchases, with discount percentages for all customers if the shares are constantly moving upward. This will be a way to gather the attention of new customers by introducing this program to them. When the new company and employees’ performance reviews by the customers are favorable for a long enough period of time, it could mean the turbine company is strong enough to hold its position alone in the market and do nothing but strengthen GE’s already established position there. If the reviews from the survey system are poor, the turbine company will have a chance to address the issues and still have to lean on GE for support with their structuring and financing. Process/Internal Operations Perspective Strategic planning is necessary to deliver the turbines to the customers. It should be done in accordance with the customer’s needs for energy conservation and desires of lower energy bills. In order to improve the business efficiencies, market value as well as the current position; one should have an effective strategic management team to overcome all the resistance from the energy providers. The most important thing is to define the purpose or intention of the strategy, this will lead a company smoothly towards its goals. The goals highlight the vision and mission statement of the company. GE’s plan with this new company is to show the world they are the new innovation in green energy through normal daily routines. For the satisfactory outcome of the company the strategic objectives and goals should be monitored on a daily basis. The company will set its objective, as  well as start down a path to be followed while keeping in mind the values and interest of the customers without fail. There will be a tool or set of measurements which may be used to measure the targets, public interest, share value in the market, and budget in hand. In the company’s strategic planning, the surveys will be done constantly so they will be able to change daily to critique their new company to the desires of the customers. GE will be providing excessive financial aid to this company to constantly monitor and aggressively attack the market with this new product through marketing, distribution, and any other means necessary. These turbines will make paying for energy easier on every customer who desires lower bills. GE feels that with this new product, all it will take is for the first customer to experience the difference they can make in attacking inflation. Learning and Growth Perspective The learning and growth process is considered as an extremely important aspect in the balance scorecard, this perspective focuses on the growth and prosperity of the company as well as the learning of internal and external public needs. â€Å"Learning† in accordance with this turbine company is to learn about the attitudes of the internal employees and external customers. This technique of Balance Scorecard will help the company to maintain its position in the market and also bring technological changes. The technological changes are being implemented from the initial launch of this product. GE is able to use their influence to create a technology that hopefully will take the competition years to catch up with. The surveys will provide valuable information to achieve the organization’s mission to constantly learn and improve their product and how the company is operating. The strategic planning should focus on employee training to have competent employees who constantly develop their skills and ultimately provide benefits to the company. For the in-building turbine company, the strategic objective will bring constant improvements in the company. The improvements will be in the form of new technology in the company, constant recruitment of the deserving candidates with retaining the highly skilled workers, as well as letting the customers know the company is always working on the suggestions they provided to increase the organization’s trust and customer circle. The organization will develop a strategy in order to provide more benefits to the customers such as online purchasing and billing for the turbines, letting the customer overlook the fabricating process, constantly introducing new advancements with the products and services, and introducing attractive packages and offers like the discounts for the customers for helping keep the shareholders interested in this type of energy production. The success of the company depends on its vision and mission statement. The best way to attain the targets and goals of the company is to have a strategic plan which can effectively explain and deliver the objectives of the company. The achievements and goals of the company will be easily measured. The well-balanced business will develop the balance scorecard, which is the most significant technique to achieve all targets for GE’s new organization. The balance scorecard’s four perspectives defined here are: Financial perspective, Customer perspective, internal process, and Learning and Growth. With each perspective, the company will define the strategic objectives, performance measures, targets and initiatives. References: Budget. (2014). In Dictionary.com. Retrieved from http://dictionary.reference.com/browse/budget Buhrman, M. (2014). Energy rates could increase after storm. Retrieved from http://russellville.thv11.com/news/news/111997-entergy-rates-could-increase-after-storm Lorette, K. (2014). Importance of Product Packaging in Marketing. Retrieved from http://smallbusiness.chron.com/importance-product-packaging-marketing-648.html Product Focus. (2014). Retrieved from http://www.productfocus.com/pricing_how_to_price.php What is Carbon Fiber? (2014). Retrieved from http://www.dragonplate.com/sections/technology.asp Strategic Management Insight (Sep 03 2013). Retrieved from http://www.strategicmanagementinsight.com/mission-statements/general-electric-mission-statement.html Balanced Scorecard Institute (2009) Balanced Scorecard Basics. Retrieved Sept. 19, 2014 from http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx Pearce, J. A. & Robinson, R. B. (2013). Strategic management: Planning for Domestic and Global Competition (13th ed.). New York: McGraw-Hill.