Part A:

1; balanced scorecard its popular toll for business manager can use it and result relating to four
dimension of performance , financial ,customer perspective, internal process and innovation .
The financial perspectives specify the company strategy, measure terms of sale profit and
return and if the company growing, Customer perspective viewing the company from customer
it help the business to hold their clients. Internal process measuring how will the organization
create balance score enable organization to figure out where they actualized procedures just
how productively they are functioning . Assist organization with deciding if they have the
perfect individual and if their achieving their goal.

The advantage of balanced scorecard” it gives structure to your strategy and help to keep your
goal at the center.

It enables your worker to perceive how their individual objective connects to the hierarchical
system.

It makes it easy to communicate your strategy.

“BSC integrates financial and non-financial goals and performance measure Into single system
which traditional controlling techniques never consider.

2; Balance scorecard adopts a balanced and comprehensive approach for judging and
controlling an organization performance , by setting objectives and performance measures in
four key perspective : financial, customer, business and internal processes and learning and
growth.

“BSC integrates financial and non-financial goals and performance measure, Tesco is recognized
around three pillars of customer, product, and channels and they measure their progress with
some simple key performance, grow sales, delver profit, and improve operating cash flow

Tesco decide to established product development and quality management process which keep
the need of their customer central to their decision making.

3; nonfinancial measure 5 advantage:

First the advantage of non-financial that allows time for training or preparation these regions
which devour a lot of cash to start with.
“Tesco , enables their colleagues, supplier and their stuff around the world use learning to
support compliance with code and ant bribery and fraud training is included in annual refresher
training.

Second, nonfinancial offer regard to the long term advantage associated with the preparation
for example new product development.

Tesco decide that long term change in the global political environment mean that in some
markets there is push towards greater regulation of foreign investor and a favoring of local
companies.

Third, the non-financial differentiation assemble a notoriety for an organization to take-up

procedures like cost

Tesco decide to give the best value or cost without any compromise on quality they adding to
their range of entry level brand that are exclusively available at Tesco.

Fourth, the company has to give maximum regard to the available monetary benefits.

fifth,

4: there is some viability of the company to long run. The context for assessment, the director
have based their assessment of viability on the group current strategic plan, the strategic plan
makes assumption relating to customer behavior, market dynamitic. And the assessment
period, period of time that the company has the right to determine whether or not it should
charge an additional premium, the director in Tesco has determined a three year period is an
appropriate time frame , assessment give the dynamic nature of the retail sector . Then, the
assessment of viability, the viability of the company include external funding in place over
assessment period, the external dept. it include consolidation of the booker business.

Part C

The purpose of capital budgeting is the process of evaluate long term investment, capital
budget in the business its mean asset, building, equipment.

There is a four step to follow when making a decision about project or purchase. the first step
to calculate the payback period , you need to look if the project pay back is less than the
maximum acceptable pay back, accept the project .the second step net present value consider
timing the cash flow and consider the whole of the relevant cash flow , but not easy to
understand the result . The third step accounting rate of return it’s to measure the average
annual rate of return over the asset entire life. Fourth internal rate of return, the rate of return
that an investment earns , if rate of return the hurdle rate , the investment acceptable and it
consider time value of money.

References :

www.bizfluent.com by jim molis 5/12 at 7;10

www.clearpointstrategy.com by joseph lucco 5/12 7:30

www.ezniarticles.com by rohit agrawal 5/12 10pm

www.reasearchgate.net

www.thebalancesmb.com by rosemary peaviler 8/12 1:06 am

Part B:
Strategic management means the implementation and for formulation of various strategies in
order to achieve their goals, it allow the organization to be proactive rather than reactive.
Budgeting involves identifying acquiring, and allocating the resources needed to carry out the
plan, and there is a lot of purpose for budget, to planning control to communication,
communication is one from the benefit of budgets, necessary for build a framework for you
strategy , budget should detail where funding will come from to execute new strategies
successfully , budget is a formal method to communicate plan. Strategic management
presents manager with a process for making decision , the importance thing in the initiation of
company strategic is creation of a budget , budgeting is the strongest part of strategic
management , a higher budget help the company to reach its strategic plan and their control ,
such as expenses, revenue cost effective strategy execution and investment in the future.
.budget for strategic to manage planning tool for implementing new advantage ,solving
problem achieving strategy goal and long term of continuity for more than one year to
accomplish a complex strategy ,