The Balanced Scorecard & Amp; the Financial Perspective
Apple Company deals with the designing, manufacturing, and marketing of mobile communication products and devices and other computer accessories aimed at promoting the communication and interaction of their consumers (O’Grady, 2009). The company also provides other products such as software, services, accessories, networking solutions, and the provision of third-party digital applications. Apple’s vision statement is based on the need for growth and success through the emphasis on innovation. The innovation focuses on product design and development where the consumers can enjoy the easy-to-use products such as the iPhones and iOS gadgets (O’Grady, 2009. Additionally, the mission statement of Apple’s Company focuses on the development of their products for the future of mobile phones and computers. Therefore, the company focuses on the research and development of the mobile devices as well as computers with the aim of having a competitive advantage.
Additionally, the Apple Company is strategizing on improving their overall performance in financial structure through the incorporation of the company objectives and strategies. For instance, the company aims at dictating their objectives through the marketing mix which includes the price, product, place, and promotion (O’Grady, 2009. Therefore, some of the financial objectives include the offering of premium products with premium prices while maintaining the market share. The objective is followed by the strategy of the continuity of the production of revolutionary products. Furthermore, the second objective is based on the expansion of global market of their products which would be successful if the company starts placing stores at every corner of the world with the aim of targeting a larger market (Green, 2016). Additionally, a third financial objective of the organization is the increase of profit margin, which would be made possible by pushing to lower the production costs as well as maintaining the retail price and the value of the products.
The productivity and financial success of the Apple Company depend on the measurement of their performance based on the objectives. For example, the production of outstanding products with premium prices would ensure that the company functions within their goals of excelling in the businesss (Green, 2016). The objective is measured through the performance metric such as the customer satisfaction score. The metric is measured through the voice of customers, customer satisfaction, and feedback from the customers with the aim of measuring the level of consumer satisfaction (Lee, 2014). Therefore, the metric would measure the performance of the Apple Company and their products would ensure a high flow rate of revenues.
Additionally, the objective of expanding the global market is made possible through the measurement of a performance metric based on gross margin. Lee (2014) claims that gross margin should be a subject of expanding the global market for Apple’s products hence; improving the business health. Furthermore, the third objective of Apple Company is profit maximization, which would be made possible and measurable through the metric of cash flow. Cash flow in an organization ensures the realization of loss and profits made. Therefore, the company would focus on minimizing the production costs but maintain the market prices to increase the overall profit margin.
Furthermore, the Apple’s Company objectives also speculate the performance expectations based on the need for excelling in financial obligations. For instance, the management focuses on achieving the goal of offering premium products by identifying the product description which would help develop the production of premium products (Rosemann & Vom-Brocke, 2015). Additionally, the expansion of global market should be expected to enhance the strategic performance available within the scope of the company. For example, Apple Company focuses on establishing new markets in the entire globe whereby a significant number of consumers would reach their products. Lastly, the objective of increasing the profit margin is seen through the results obtained in the production area. The lower the production cost, the higher the profit margin whereby the price is constant.
The Apple Company’s management should improve the profit margin by incorporating strategies that would enhance new revenue sources as well as minimize the costs of production. Rosemann and Vom-Brocke (2015) claim that, the manufacturing of premium products would be practical with the employment of product leadership strategies that are aimed at promoting the production department in providing with premium commodities. Therefore, the globalization of Apple’s Company would be based on revenue growth or productivity objective that would increase the chances of becoming competitive superiors.
Table 1: Objectives for Improving Financial Position
| Objective | Measure | Target | Action |
| Premium Product | Consumer satisfaction | Competitive advantage | Great Research and development team |
| Global market | Consumer’ feedback from all over the world and exportation power | Increasing sales and revenues | Establishment of new ventures all over the world |
| Gross margin | Annual sales and revenues made | Improving the company’s reputation and enlarging The territory | Reduce production costs and maximize sales |
References
Green, S. (2016). Apple. Minneapolis, MN : Bellwether Media, Inc.
Lee, C. M. (2014). Performance measurement: An investor’s perspective. Accounting and Business Research, 44(4), 383-406.
O’Grady, J. D. (2009). Apple Inc. Westport, Conn: Greenwood Press.
Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process management. In Handbook on business process management 1 (pp. 105-122). New York, NY: Springer Berlin Heidelberg.
