Customer view should be used in the development of a Sustainable Balanced Scorecard. Specific customer goals may focus on market or sales. The customers’ achievements include the measurement of clients’ fulfillment, profitability, market share and some new buyers and the number of new products launched.
Customer perspective approach is used because it defines the customer/market segments in which the business competes. The client’s perspective can represent the value of the customer through applying appropriate objectives, measures, targets and initiatives through which the business unit wants to achieve a competitive advantage in the envisaged market segments (Rizk & Ossowski 1990).
WML is going an extra mile of providing what has been lacking to the customers. The approach tends to take unfamiliar understanding and apply it to the broad and new choices like in the case of use of Moso bamboo. Customer perspective approach aids in collecting and combining data to create new insight that can feedback to the equation. This has been shown in the text by the studies that had earlier been conducted. The studies revealed that Moso is one of the best resources that are required.
The approach will enable the firm to identify opportunities based on the customers’ needs and desires in a way that leads to massive impact. This will evaluate marketing, sales copy and the offers from the customers’ point of view to ensure success (Gibson 2012). Wave Master Ltd (WML) is taking an upper hand in production as it is shown clearly from the text that WML has been considered as one of the best companies in the market. Hence, it deals in wetsuits and surfboards in Australia. Therefore, WML has a larger market share in Australia compared to other enterprises which have been overtaken by others.
Approaches to the development of the sustainable balanced scorecard
The approaches to the development of sustainable balanced scorecard are mainly three. There are the environmental and social features such as customer, financial, internal process and learning and growth. The second approach is majorly to create additional perspective to separate the indicators from the environmental and social features. In addition, the approach which formulates a definite balanced scorecard around the measure of sustainability performance. For WML Company, it would be significant to use the approach that adds additional perspective to the environmental and social characteristics. This is according to the development plan of WML as formulates a definite balanced scorecard around the measure of sustainability performance.
Classification of strategic objectives
The main objective of financial perspective is to increase 10% of the return on investment (ROI). WML has a plan in place to move some of its production to China and use the new bamboo materials. WML would be able to achieve this because of two main reasons. First, there is lower production in China hence this will create less competition. Secondly, the costs of employees in China are lower as compared to other parts and this will cut on the costs such as salaries and wages.
It can majorly be classified into four perspectives, the customer perspective, internal process perspective, financial perspective and learning and growth perspective. WML is doing everything within its reach to have an upper hand on the market. This made it possible to be linked in a wider area to make it acquire a vast business share. From the text, WML has been the leading players in wetsuits and surfboards in Australia. This means that WML is part of the enterprises with the highest number of clients.
WML has a surfboard factory, research, and development unit, warehouses and a distribution Centre in Torquay, Victoria and distributes its products throughout Australia by way of its fleet of trucks (Warren & Gibson 2013). This shows that this firm is all over Australia, that is, by distributing its products throughout Australia.
The company will take the larger part of the market share because it sells its products to independent retailers as well as having three of its shops in Torquay, Melbourne, and Sydney (Appel 1994). The spread of its stores in various locations make it command larger market share. Stores and retailers at the same time increase the firm’s market share as it captures both the retailers and the final consumers. For any successful business regarding profit made, the market share has to be increased. Any firm struggles to operate in such a way that it produces quality products to attract more customers. Additionally, most companies tend to recruit skilled employees to ensure that quality products are manufactured. Also, the relationship between the staff members and the customers has to be improved to aid in the attraction of more clients into the firm.
Improved technology and innovation is a significant factor to consider by a company to ensure that it increases its market share. When an enterprise introduces a new technology into the market that other competitors are yet to offer, the targeted buyers wishing to own the technology buy it from that company even if they previously did business with a different competitor. The current clients for any organization require quality goods. Therefore, it is of importance to invest in current innovations to ensure that quality and unique commodities are presented to the buyers. Even though innovations require additional capital, it is worth to avail all the necessities that can lead to improvement of a firm concerning changes. Many of such consumers become loyal customers, which adds to the company’s market share and decreases market shares for the company from which they switched. This is evident from the text where WML has developed an idea of delivering some of its manufactured commodities to China due to the lower production costs and favorable bamboo resources in China. This shows precisely the rate at which WML will grow and take an upper hand in the market share (Appel 1994).
In most cases, businesses that have a wide market share employs qualified personnel to ensure that the products produced are of high quality. Provision of high-quality products attracts most customers to purchase their preferred products from the same firm. WML employs 1,100 people locally in Victoria, of which 200 people work in the surfboard factory share (Appel 1994). This is a clear indication of how hard the firm is trying to keep the upper hand in regards to market share.
Increasing product quality is a major way of keeping the customer (Warren & Gibson 2013). This will be done in various ways, for example, WML tries to improve the quality of its products by use of Moso bamboos which is considered to be the best resource or surfboard. The use of Moso bamboos by WML tries to increase the product quality. The product from Moso bamboos will be of quality because its physical properties boast an average breaking tenacity more than two times that of the local bamboo that WML currently uses to produce surfboards share (Appel 1994).
Objectives, Lag Indicators and Lead Indicators
Market share is the breakup of market size in percentage terms, to help identify the top players, middle and minors of the marketplace, based on the volume of business conducted. Some of the factors that determine the market are price, quality, and the speed of service, ease of maintenance and points of distribution. Arguably, WML has enjoyed the privilege of being one of the key players in the Australian market. Emerging opportunities should be identified which could make the business grow faster. WML Ltd is currently considering moving some of its production of surfboards to China because of the lower production costs and better bamboo materials there. At the moment, there is no surfboard in the markets made from Moso bamboo (Logueet et al 2015).
Product quality is measured by stating the requirements in a clear, concise and testable fashion. Compliance criteria are used to indicate the degree to which a process must meet an agreed standard. This is evident from the text which describes how its products from Moso bamboo will resemble.
Appel, C., 1994. Analysis of the concentration of styrene in the air of a surfboard factory.
Gibson, C., 2012. Once a cultural icon, is Australia’s surfboard industry destined to disappear?
Logue, D., Argent, N. and Warren, A., 2015. Wipeout? The Gold Coast and Tweed surfboard manufacturing cluster and local economic development. Local Economy, 30(1), pp.119-138.
Rizk, M.S. and Ossowski, J.P., 1990, July. A new low cost phase-hit rig used in factory acceptance testing of master oscillators of digital radio systems. In Radio Receivers and Associated Systems, 1989., Fifth International Conference on (pp. 154-160). IET.
Warren, A. and Gibson, C., 2013. Crafting Regional Cultural Production: emergence, crisis and consolidation in the Gold Coast surfboard industry. Australian Geographer, 44(4), pp. 365 – 381.