Management Accounting- A case study in balanced scorecard Essay

Management Accounting- A case study in balanced scorecard - Essay Example The balanced scorecard revolves around this strategy. In relation to growing the revenues, the shift of emphasis on traditional ticketing distribution will enable the company to cut on various items on its administrative overhead. This entails a shift in market strategy, mainly by re-positioning the Yunnan Lucky Air brand to becoming an on-line travel leader through its e-commerce business model. These changes are reflected on the perceptions as objectives about the brand and the website on the customers perspective, and would later transform into expectations of customers. In order to meet these expectations, various internal processes in line with the adoption of the e-commerce business model in terms of sales and distribution should be addressed. Lastly, learning and growth objectives are related to the changes in the companys HR policies because of the new organisational structure. Fulfiling these objectives tell about how the strategies will be carried out as soon as changes are enacted. The balanced scorecard has been widely accepted by the business community since its introduction by Norton and Kaplan in 1992 (Kaplan & Norton 1993). This paper aims to explore the benefits as well as the limitations of the framework in order to recommend the adoption of it to the business practices of the Chinese airline company, Yunnan Lucky Air. One major benefit of the balanced scorecard is that the framework provides a multidimensional assessment of the issues in line with a companys vision and strategy using the four perspectives (Dror 2008). In the case of Yunnan Lucky Air, for instance, setting an expansion strategy can be off-the-target if the objectives in line with the strategy are not coordinated by these four objectives. If the company chooses to expand with only regard to the customers and not its shareholders, an expansion strategy of continuing the low-cost positioning