CLASSMATE POST RESPONSE

CLASSMATE POSTRESPONSE

Classmate Post Response

Classmate Post Response

The recent financial crisis isone of the most significant challenge business organizations havefaced in the recent past. The challenge is more important to thehousing sector due to the linkage between the financial crisis andthe housing bubble. However, the paper identified other challengesfacing business organization in the modern world. They includeincreased competition, changes in technology and regulation. It isalso important to note that the changing nature of the clients andmarket dynamics is an important challenge facing the modernbusinesses. Today, the clients are more diverse which has increasedthe need for diversified products. It is the role of the managementin a business organization to adopt strategies that will enable theorganization deal with current and emerging challenges. The paperidentifies balanced scorecard as a management strategy that canimprove the overall performance of an organization amidst thesechallenges. Balanced scorecard has been identified as an importantstrategic accounting and financial success strategy. According toBlocher et al (2013)balanced scorecard accounting concepts “captures the intent ofbroad coverage, financial and non financial, of all factors thatcontribute to the firm’s success in achieving its strategic goals”.Some of the measures of success in the balanced score card includessales, dividends and earnings growth, credit rating and stock priceincreases. Other non financial scorecard measures may includeimproved customer services, customer satisfaction, improved qualityand productivity, employee morale, and innovation (Andersenet al 2004, Lawrie &amp Cobbold, 2004).

The paper looks at theprinciples and importance of balanced scorecard strategy in referenceto Pulte Group Inc. Pulte Group Inc has been in the real estatebusiness since the mid 20thcentury. It is among the biggest residential property builders in theUnited States. The management of Pulte Group Inc has establishedseveral strategies aimed at achieving its mission, “tobuild the best house for the money, in the right location, to exceedcustomer’s expectations of the whole home buying experience”.This includes strategic mergers and acquisitions.

The paper identifies the factthat Pulte Group Incwas adversely affected by the recent financial crisis in the late2000s. This is mainly because the crisis was linked to the realestate market. Nonetheless, the company has been able to adoptstrategies that have improved its financial position in the last twoyears. The paper identifies some of the financial and accountingbenefits Pulte Group Inc can derive from balanced scorecardstrategies. First, balanced scorecard financial strategies will beessential in allocation of resources by allowing the management toidentify priority areas. Secondly, balanced scorecard is essentialfor good customer relations and customer satisfaction. This will inthe long run build the brand equity and recognition. Thirdly,balanced scorecard financial strategies will be essential inmonitoring and controlling the internal business processes. Accordingto Agrawal (2008), monitoring the internal performance metrics isone of the most important factor that influence the achievement ofkey performance indicators such as financial objectives and customersatisfaction. Lastly, balanced scorecard financial strategies willhave an influence on the organization culture as well as employeesmotivation. Therefore, based on the conclusion of the paper, adoptionof balanced scorecard financial and accounting strategies at PulteGroup Inc will influence all aspects of the organization. Accordingto Malina and Selto(2001), this will lead to an overall improvement amidst numerouschallenges.

References

Agrawal, S. (2008).“Competency based balanced scorecard model:&nbsp an integrativeperspective”. IndianJournal of Industrial Relations.44(1). 24-34.

Andersen, H. V. Lawrie, G. &ampSavič, N. (2004). &quotEffective quality management throughthird-generation balanced scorecard&quot. InternationalJournal of Productivity and Performance Management53(7): 634–645.

Blocher, E., Stout, D., Juras,P., &amp Cokins, G. (2013). CostManagement-A Strategic Emphasis (6th ed.). New York, NY: McGraw-Hill Irwin.

Lawrie, G. &amp Cobbold, I.(2004). &quot3rd Generation Balanced Scorecard: Evolution of aneffective strategic control tool&quot. InternationalJournal of Productivity and Performance Management53(7): 611–623.

Malina, M. A. &amp Selto, F.H. (2001). &quotCommunicating and Controlling Strategy: An EmpiricalStudy of the Effectiveness of the Balanced Scorecard&quot. Journalof Management Accounting Research13: 47.

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