Balance Scorecard

FINANCIAL PERSPECTIVE

The balanced scorecard concept moves stakeholders away from a single-minded obsession with traditional accounting data. However, in some cases, financial performance measures were apparently forgotten as managers, stock analysts and investors became obsessed with customer satisfaction and intangible asset growth. It is true that customer, learning and growth, and internal business process are vital for a company; but one cannot deny that financial perspective is one of the key to a company' success as well.

There are three objectives that Pokka should emphasize in order to become a financial success company as well as to create greater value to its shareholders: Maximize return, Profitable growth, and Manage operating costs

Maximize Return Objective

A properly implemented capital employment plan can be a strategic investment that pays for itself many times over. Therefore, it is important for Pokka to have a prudent investment strategy in order to maximize its return. ROCE - Return on Capital Employed is a measure of the returns that a company is making from its capital. The advantage of ROCE is that it is very transparent, which is why it is highly regarded by investors. ROCE is easy to comprehend and comparable. Also, it can be calculated directly from the publicly available financial reporting of a company. In order to maximize returns, the strategies Pokka undertake should aim to increase its ROCE. In addition, ROCE should always be higher than the rate at which Pokka borrows; otherwise any increase in borrowing will reduce shareholders' earnings.

Profitable Growth Objective

Revenue is a crucial part of financial analysis. It is used as an indication of quality of earnings. Pokka should consider growth in its revenue in together with its income growth. This is because high income growth would be useless if a company failed to produce significant revenue growth. Increasing the revenue growth can be done through exploring new product or new region revenues. Having innovative products or expanding into new markets enhances Pokka to have the first mover advantages. It also enables Pokka to be responsive to the changing consumers' preferences in the beverage market which is one of the goals stated in Pokka's mission statement.

Manage Operating Costs Objective

There are countless ways to improve operations. The key to success is being able to discriminate which improvements will matter from the ones that would not worth the company efforts. Pokka would face the challenge of finding a simple and reliable way to identify and prioritize improvements. However, the end result of being able to reduce operating costs would enhance Pokka's competitiveness in the market; as well as enable Pokka to deliver values in respond to its shareholders' needs. One of the methods Pokka should undertake is to reduce the operating costs per customer: to pay the right price, and obtain the most efficient uses of each dollar it pays. For example, if Pokka can train each of its salesperson to sell the amount that was previously sold by two salespersons, then Pokka can reduce its operating costs per customer by half.

CUSTOMER SATISFACTION

According to the mission statement of Pokka, it is stated that "to satisfy your needs" which mean it commits to maintain customer satisfactions as best as they can. But how can we measure the customer satisfactions? It can be divided into three objectives: Retaining existing customers, Level of customer satisfaction, and Acquiring new customers.

Customer Retention

First objective is retaining existing customers is very critical since the cost of retain are relatively lower than seeking for a new target; in addition, it is less complex to achieve this goal when comparing with obtain a new group. According to About.com: Marketing, it is said that "it's five times more profitable to spend marketing and advertising dollars to retain current customers than it is to acquire new customers" Therefore, the company needs to have the tool to measure its customer retention.

* Number of loyal customers: Frequency of purchase, amount of dollar per one time purchase(order size)

Both frequency and amount of purchase will help the company to study the buying pattern of customers and evaluate the benefit received from each one; therefore, the company can rate the customer by these numbers, or may prepare the customer profitability analysis with the purpose of reporting the revenues earned and cost associated with those revenues. As a result of the analysis, managers can make sure that what level of contribution for each customer then it would be comprehensible to decide where the company's efforts should be.

* Customer loyalty program: Number of program implement, the effectiveness of each program

Loyalty program is use to maintain your loyal customers such as discount for membership card, rebate coupons, and reward points card. Here at Pokka, it already implemented a customer loyalty program in a restaurant chain; nevertheless, on the core product, like beverage, it has no clear program to measure yet, so it is useful to support the loyalty program launched: discount on the products for the cardholders, points from purchasing with Pokka can convert to premiums, and the discount coupon for new product that attached with the popular items.

As mentioned above that we are going to measure the number of the launched program; however, it is necessary to measure whether those programs are effective or not by examine the popularity of the program, trade off between costs for implementing and benefits return, and sustainability of the program over the long-term.

The most convenient way to tracking is the same as inventory tracking by using computer-based system like EDI (Electronic Data Interchange), which use to exchange information electronically among parties. For instance, Pokka will link with EDI with the retail stores to observe the level of loyalty program that are exercised by individual. For the wholesales store, the observation will be more straightforward owing to the less number of population; thus, it is allowed the salespersons to interact directly to customers.

Customer Satisfaction

Secondly, to deliver the satisfaction to customers is the most necessary part of every business as it can affect the overall sales revenue and profit both long run and short run. However, the satisfaction can be very abstract since it can range widely like product quality, timeliness,