Andallo, Ransey Ace Dagle BSMA 3-1

The Balanced Scorecard—Measures that Drive Performance

The Balance scorecard gives a different perspective on how the management will
act on specific situation wherein neither of the two choices should be given up. “A
Balance Scorecard augments the traditional financial measures of performance of a
business with benchmarks performance in three key nonfinancial areas: a company’s
relationship with its customers, its key internal processes, and its learning and growth,”
(Kaplan et. Al. 2004). As a working student for almost two years now, I have a quite
experience on how to communicate and establish relationship with the customer.
Dealing with customer is easy to say rather than done. “Customer is always right”,
quote that will always be bring up for every altercation between the management and
the customer. We always give our best to solve every problem without being on the
disadvantage. Also treating every customer with utmost respect gives a better
reputation in the community. Customer’s rating should always be valued because they
will be the critic for the products and services we provide.
To be honest, our company is at loss for its whole operation because of the
management’s fault. Its operational actions although doing good, failed to satisfy its
financial performance. The company failed to capitalize its loan from the owner of the
land to build a private market with a budget of thirty million pesos but never been
touched. The market can earn up to four million pesos from gross revenue itself. The
proprietary evaluation process we used looked at the market's free cash flow, which is
what financiers care about the most, as well as a variety of intangible metrics like the
number of tenants on file and the number of new tenants received per month, the staff
turnover rate, the office decor, and other factors that would be important to a private
market. The intangible metrics were used as modifiers to the cash flow to determine
what the value of the market should be. Our company mainly focuses on operational
performance to survive and pay the weekly payment of interest for the loan.
As for the financial measures, if the management does not have to pay the
weekly interest, a net income can be generated. The best possible way to end it is to
find an investor who is willing to buyout the loan from the owner worth one hundred
twenty million pesos (Php 120,000,000.00). How is that even possible that the loan
from 2 years ago amounting to thirty million pesos (P 30,000,000)? Every time the
market pays for its monthly rent, a part of it goes to the interest of the loan and the
rest goes to the rent. The deficit of the payment for the rent will be penalized for
twenty percent interest (20%). And after two years it multiplied. The company should
always balance its priority in order to win it all.