What is one of the perspectives used by an organization when developing a balanced scorecard?
Correct Answer: A
The Balanced Scorecard (BSC) is a strategic management tool that measures organizational performance from multiple perspectives. One of its core perspectives is "Financial" because:
* Financial performance metrics evaluate cost efficiency, profitability, and value for money.
* The four standard perspectives of the Balanced Scorecard include:
* Financial - Measures cost control, revenue, and return on investment.
* Customer & Stakeholder - Assesses customer satisfaction and stakeholder engagement.
* Operational Excellence - Evaluates efficiency, productivity, and service quality.
* Innovation & Learning - Focuses on continuous improvement and staff development.
* Why the other options are incorrect:
* (B) Management style is not a formal BSC perspective.
* (C) Market trends may influence strategic decisions but are not a standalone BSC category.
* (D) Real Estate strategic plan is an operational consideration but does not replace financial performance as a key BSC metric.