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Big At Good Solutions is a traditional company with a combined workforce of 356 staff. Due to increased levels of competition, this company is now increasingly finding it difficult to compete – especially as the larger companies seem to be a little more innovative, agile and responsive to client requirements. Management have noticed that staff (especially the good ones) are now leaving the company to seek work elsewhere (in these larger companies). This has meant appointing new staff  and undertaking a considerable amount of re-training (to replace those that have left), which has had a negative impact on Big At Good Solutions’s core business.

Given this position, senior management at  Big At Good Solutions have decided to implement a Balanced Scorecard analysis of their existing business strategy with the expectation that this will help improve things. However, this is completely new to them (and they have never done this before).

You are required to prepare a management report and advise management on:

  1. The current thinking on Balanced Scorecards;
  2. The potential positive and negative impact of adopting a Balanced Scorecard in BIG AT GOOD SOLUTIONS’s existing business strategy (from a change perspective – focussing on existing organisational and project processes only);
  3. How BIG AT GOOD SOLUTIONS might undertake such a transition by creating a NEW Balanced Scorecard, including a full implementation strategy; and
  4. All risk issues that need to be considered.

Introduction and Context

This report focuses at describing a new balance score card that will help the organization BIG AT GOOOD SOLUTIONS in improving its efficiency. This is basically a traditional company with workforce of 356 staff. The company is facing challenges with the increase in the level of competition the company is facing several problems with the growing demand and the competence in the market. Moreover, the management people are leaving the organization in order to work with the large companies. Thus this situation lead to appointing new staffs for the organization, so that the work can be performed within the organization properly (Apiti, Ugwoke and Chiekezie 2017). For this there is a need to develop a balance score card that will help to understand the factors affecting the working of the organization. As the employees are going to be hired newly, thus there is a need to train them about the working and also needs to tell them the negative impacts that will be created on the organization. Thus this is the responsibility of the organizations senior management team to implement a balance score card that will help in analysing the business strategies that will help in improving the working and the productivity of the BIG AT GOOD SOLUTIONS (Senarath and Patabendige 2015). The main aim of the paper is to describe balance score card that will help in describing the internal and external challenges faced by the companies and the opportunities that arises with the implementation of these score cards.

  • There are several challenges that are likely to be faced by the company. These can be of two types the internal challenges faced by the organization and the external challenges. This are as follows:
  • As several old employees are leaving the job, thus it will create a problem within the organization. The organization will be under pressure of appointing new employees and even the trainee’s needs to understand clearly about the objective of the company (Comacchio, Campioni. and Bonin 2017). This will help in increasing the productivity. Thus, this is one of the major challenge faced by the organization and needs to be overcome.
  • The future prediction is very difficult and the organization needs to always manage and prepare for any uncertain situation.
  • Sometimes it becomes difficult to manage the financial department and meet the present requirements (Awadallah and Allam 2015).
  • In order to compete with the competitive organization, the BIG AT GOOD SOLUTINS needs to make measures that will make the company different from others.
  • Meeting with the customer needs to be the main focus for the organization. As meeting the customer demand is important (Broccardo, 2015).
  • Use of the new technology may become a reason for challenge within the organization.
  • The communication gap within the organization may lead to internal dispute and will turn into challenge for the organization.

Balanced Score Cards can be defined as metric evaluating the performances within a project, specifically used for Strategic Project Management (Soleh, Fahmi and Saptono 2015). The Balanced Business Score Cards helps in the identification and the improvement of the internal functions that undergo within a project within an organization as well as the external outcomes as a result of these internal functions. Generally, a Balanced Scorecard generates

New Balanced Scorecard solution for BIG AT GOOD SOLUTIONS, including corresponding implementation strategy

BIG AT GOOD SOLUTIONS

Balanced Scorecard

Department: Operations

Focus Area: Business Strategy

Scorecard Purpose

The Balanced Scorecard for Big At Good Solutions have been developed to change the business process from the existing one to the new business process relying as per the business processes of the competing organizations. This is done to help the organization since the employees have been resigning from their posts rapidly to move towards the business organizations having better business operations infrastructure.

Scorecard Definition

Balanced Score Cards can be defined as metric evaluating the performances within a project, specifically used for Strategic Project Management. The Balanced Business Score Cards helps in the identification and the improvement of the internal functions that undergo within a project within an organization as well as the external outcomes as a result of these internal functions.

Prepared by:

Title:

Approved by:

Title:

Approved Date:

Business Strategy Consideration

Development of strategic plan

Business owner like BIG AT GOOD SOLUTIONS can easily create strategic plan which will help in identifying strategic goals (Perramon et al. 2016). It will help them in analyzing certain number of steps which are needed for achieving the given aspiration. A strategic plan is mainly inclusive of a large number of consideration which is inclusive of look where the organization is doing currently. It is considered to be specific for some of future period that is one or even 10 years. Most of the organization makes use of strategic planning on an annual basis. The main objective of the organization is all about setting some priority and objective for the upcoming year.

Realistic Expectation: For the various strategic plan to be effective in nature, it should be on certain number of realistic number and its evaluation. The organization should move into service line or its expansion into the new kind of territories. Planner should take into consideration the various kind of outside force which is needed for detail design (Sahiti et al. 2016). There are some kind of political forces, competition and lastly consumer trends. By understanding the planning committee seats one should come from the inside business. Planner should take into consideration the view which is taken outside the rank of the organization.

Plans value: Strategic plan for organization can be seen for growth or continued success which mainly depends on the various economic factors. Consideration are considered to be strategic plan which needs to be included for the given organization values. The incorporated values can be easily incorporated for some of the future plans. Planner should take into account the fact that what the organization stands for and who it aims to serve (Mohamad 2016). It is mainly reflected on the mission statement of the organization. Planner should into account both legal and environment changes of future plans. It is considered to be best interest for both employees and included families. It is all about understanding the plans of an organization which is needed for measuring the integrity and its standard for implementing strategic plans.

Moving into action: Planning process is all about detail which helps the managers from extensive budget projection and its chart. It mainly highlights productivity on time. Various aspects like executive, sales manager and executive mainly take part in the planning which is needed for covering the consumer base. The pressure is produce to report which needs to be included in the given strategic plan. Strategic plans are considered to be successful when both aspects are taken into consideration like accountability procedure and implementation.

Plan visibility: Strategic plan are considered to be very important but if its implementation needs to be feasible in nature the output is considered to be futile. It is vital for various strategic planner for carrying out run break-even analysis. It is mainly needed for understanding the financial aspect of each and every important parameter. Financial analysis shows how the business needs to be covered which is due to cost of capital improvement (Ani?i?, Petrovi? and Ani?i? 2016).

Development of strategies for reaching there

Various organization like BIG AT GOOD SOLUTIONS are looking for development of some strategic plans. The organization aims in creating a vision for the upcoming future and proper strategies for reaching there. But a large number of organization fail to understand their vision and fail to deliver the expected strategies for this. Various executive teams cannot highlight the reason for the given dilemma which can repeat strategic planning cycle. It is mainly done so the following strategic planning is mainly required which can provide much better results.

Engagement: Strategic planning is generally stated as a process or not an event. The key element in this method is all about engagement of various level through the given organization. Staff engagement is all about additional kind of input which is helpful in building a better kind of commitment for the end plan which is provided.

1. Communication: Strategic planning method is stated to be successful when proper communication is there between top and bottom. It mainly starts with a proper kind of communication which is required by various level of employees. It is all about having a proper kind of strategic planning process which needs to be taken into account (Chung, Bao and Shaw 2016). Employees of BIG AT GOOD SOLUTIONS can easily provide input for strategic planning method. It can be done with the help of various feedback surveys, meetings and lastly proper groups. It is all about regarding the various ideas and concept of organization direction.

2. Innovation: Strategic plan is all about including a list of strategies which is needed for delivering products or services and lastly reconstruction of any department. The organization can easily put certain number of individual in together (Roussas and McCaskill 2015). It focuses on certain number of initiatives which provide assurance regarding the success of invested money. Organization like BIG AT GOOD SOLUTIONS emphasize their worker to be innovative in nature. The organization aim in building certain number of strategies for the given product and services (Schwieger 2015). The organization may fail to develop certain number of strategies which is needed for innovation. It is all about reshaping the structure of the organization to be innovative in nature.

3. Project management: As soon as the strategic plan is all about two elements which are related to project management. One of the best step is all about identifying the needs of the project so that its execution of each of the strategy can be done (Jayawardena and Rathnayaka 2016). Second method is all about developing a priority for the given project. It is mainly done so that high priority can be given to proper kind of resource which is needed for success. It requires a proper kind of involvement and commitment on employee portion so that they can easily spend certain amount of time of projects.

Culture: Organization culture comes up with high altitudes, beliefs and value of various employee. Culture of the given organization is considered to be unique and diversification of individual personality (Kerai and Saleh 2017). If the employees believe that the given change is feared and avoided, then implementation is reactive in nature (Effendi, Soebijono and Rahmawati 2018).

Big At Good Solutions

 

Balanced Scorecard Matrix

Perspective

Objective

Measure

Target

Priority

Initiative

Data Owner

Financial

Increase Net Operating Profit

Net Operating Profit

10 per cent end of year

High

Increase Project Profitability

Finance Director

Projects greater than 250 USD

2 per month

High

Sales team to work with Industry consultants to promote industry projects

Consultancy Director and sales Director

Customer

Improve Customer Satisfaction

Customer satisfaction score

95 per cent average

High

Support Director

Accounts with Account Managers

70 per cent by year end

Medium

Sales Director to assign accounts and balance existing workload

Sales Director

Internal Process

Number of industry templates

1 per month

Medium

Assign consultants to development of 1 industry template each per quarter

Managing Consultant

Maximum utilization

82 per cent month on month

High

Operations Director

Learning and Growth

People want to work at <company>

Number of CVs received

5 per month

Med

Set up team-training schedule

Training Manager

Employee opinion survey

85 per cent average on six month survey

Med

Conduct an employee opinion survey every six months

HR Director

Number of staff trained in Balanced Scorecard

90 per cent consultants by year end

High

Balanced scorecard training plan in place

HR Director

All staff to build a management dashboard

100 per cent by year end

High

Training from Consultants set aside in diary

Managing Consultant

Development Timeline

Development Steps  per   Week

1

2

3

4

5

6

7

8

9

10

11

12

Step 1: Establish Strategic Goals

Step 2: Identify 3 to 5 Strategic Themes

Step 3: Build a Strategic Map

Step 4: Define your Metrics & Targets

Step 5: Identify your Programs

Step 6: Create an Implementation Plan

Establish Strategic Goals

Criteria Menu

Define Goals

Marketplace

Industry Trends

Technology

Competition

Past Performance

EXAMPLE-

We will increase revenues by 40 per cent over the next three years


The main steps included in implementation of the balanced scorecard have been listed below:

  1. Providing of clear and concise overview of the strategy and the objectives of the organization.
  2. Secondly comes the development of the strategy map (Singh and Sohani 2014). This is one of eth tool that is used for eth purpose of translating the strategy into operational terms. A graphical representation would be provided consisting of the cause and the effects between the strategic objectives. This would also be showing the ways by which the values for eth customers and the stakeholders are created.
  3. Amending of the scorecard if necessary: the Organization firstly needs to determine the strategic goal that is to be adopted and for this particular organization it is the adaptation of new innovative ways along with being agile and having increased responsiveness towards the requirements of the clients (Muda, Erlina and Nasution 2018). All this are to be measured.
  4. Finalization of the implementation plan.  
  5. An implementation plan is to be produced and this plan is to be communicated amongst all the employees. Everyone in the organization is to be informed and it is very vital to communicate all the employees.  The potential benefits are to be put forward along with making sure of the fact that everyone in the organization is aware of the roles that they are going to play while achieving the organizational goals (Ratnasingam 2014).  
  6. Reviewing and revising of the system is also essential. This needs to be done so as to access the success or to review the gathered information or the action that is taken. This would help in understanding if any type of future modifications are needed or not.

The risk management needs to be done properly for every organization. The risk management deals with investigating and evaluating the risks and mitigating this risks so that less impacts can occur (Fernando et al. 2018). These becomes very much necessary to understand and manage the risks on time for every organization. Risk management is the process that involves identifying and focusing the risks that are likely to arise with time in the organization. Thus this becomes very much necessary to understand the preventive measures. Risk are being assessed as the occurrence of an activity in the future that have the ability to harm the organization (Sreelakshmi and Rao 2017).  The necessary steps that are needed to be implemented within the organization includes identifying the risks at the first stage then comes assessing the probability and likely severity of these risks , developing strategies for managing these risks and finally implementation and monitoring the risk management plan are the last step. There are several kinds of risk that arises with the implementation of balance score card. The main use of a balance scorecard is to implement strategy. This is the department of the management team to develop every type of strategic management and this also includes risk management strategies(Syahdan, Munawaroh. and Akbar 2018). Thus this becomes necessary to implement ways that will help to mitigate the risks, develop changes and improve the capability by re-defining the targets, actions and initiatives. Thus it is expected that with the operational strategies the balance score card will also include risk management strategies.

Balanced Scorecards (synthesis of core literature)

The different types of risks that are needed to be identified includes the question that arises with safety towards the finance and also the risks that are associated with health and safety. There are also chances of fraud cases and risks related to the regulatory. In addition to all this risks there are risks related to the operational risk, market risks and many more risks. After identifying the risks, the organization needs to address the risks, the risk needs to be strategies and the balance scorecards needs be designed similarly (Fooladvand, Yarmohammadian and Shahtalebi 2015). These will include all the strategies and the mitigating section. The risk management needs to be analysed based on the four parts of the balance scorecard maintained. The financial department works with an objective of increasing the net operation profit. This involves completing the project t within a time period.

There are high chances of risk in these particular part of the balance score cards. As these department maintains all the databases related to the finance, thus this section needs to be handled with extreme care, the information stored within this database are very much crucial and confidential (Dagman and Frykman 2015). Next comes the customer, the aim of these art if to improve the customer satisfaction and provide best customer service. Customer satisfaction needs to be taken care, as the products built are for the customer and this is very much necessary to build a product that will be beneficial for the customer (Tizroo et al. 2017). The risk assessed with this part is also having high priority and needed to be mitigated on an urgent basis. The next factor of the balance score card is the internal process, the priority of the risk assessed for this is medium. This involves assign the task and diving it among the workers of the organization. The last factor is the learning and growth and this has risk in medium level. The risk management strategies are very much important for every step (Saraswat 2014). The organization needs to hire a consultant that will provide appropriate strategies in order to mitigate these problems. The new balance score card developed will be helpful to assess the risks (Boscia and McAfee 2014). The balance score card includes the risk assessment and also the priority of the risk. The future application of this is that it will be helpful to assess the risks associated with the organization easily. Moreover with the implementation of the balance scorecard, the activity can be determined easily and all the activities can be assessed easily. The balance score card will be very much useful for the organization BIG AT GOOD SOLUTIONS (Tan, Zhang and Khodaverdi 2017). These will help to identify and improve the several internal functions performed and the resulting external outcomes. The implementation of the balance scorecard will help to determine all the aspects clearly.

Conclusion

BIG AT GOOD SOLUTION is one of the traditional company that is consisting of 356 staffs and because of the increased rate of competition the organization is finding it difficult to compete. The major reason for this that the larger companies are more innovative along with being agile. Besides being agile the larger companies are much more responsive towards the requirements that the clients are having. Along with this another major problem which is faced by the organization is that the experiences and the good employees are leaving the organization. In this report a balanced scorecard has been created which is depicting the departments and their business strategies.   Besides this the report has also been associated with discussing about the various positive as well as the negative impacts that the adaptation of the balanced scorecards would be having upon the organization, BIG AT GOOD SOLUTION’s existing business strategy. Balanced scorecards are generally considered to be the strategic tool that is to be used by the organization, BIG AT GOOD SOLUTION for not only measuring the performance but also for the purpose of defining the strategies that are to be adopted by the organization for the purpose of improving the performance as well as the profitability of eth organization. This adaptation of the balanced scorecard helps in the translation of the strategies into operational terms. Certain processes like the strategy mapping and the balanced scorecard is associated with tackling the various kind of deficiencies existing in the tangible asset measurements systems. The business should adopt certain strategies in order to make the balance scorecard implementation successful. For this reason it is essential for eth employees to understand eth strategy along with conducting their various routine jobs so as to contribute for accomplishing the various goals of BIG AT GOOD SOLUTION.

Business Strategy Considerations

Besides this the report has also been associated with highlighting the various kind of risks that are likely to be faced. After identification of the risks certain mitigation strategy has also been provided in the report that would be helping in mitigation or elimination of all the possible risk that are likely to be faced. Some of eth future recommendations includes the usage of other business management simulators so as to eliminate the various problems related to calibration. Another recommendation is the enlargement of the samples so as to perform parametrical statistic tests. It will be very much helpful if the organization sets the correct measures and preventive measures from the beginning itself. Combining of the business processes with the business scorecard is considered to be a fresh initiative. A strategic management process would be implemented if the organization BIG AT GOOD SOLUTION is associated with the adaptation of the balanced scorecard. Apart from all this, there is a need to appoint a consultant who will provide complete help and training for the employees and will also look after the balance scorecard. This will help to maintain and update the score card frequently and will also help to get the overview of the organization. So by adaptation of the proper risk management strategy along with the balanced scorecard would be helping the organization BIG AT GOOD SOLUTION to perform in an efficient and effective of working.

From the above report it can be concluded that with the implementation of balance scorecard, it will become easy to maintain the details. The importance of the balanced score cards are, it focuses on the strategic objectives followed by the organization, selection of the data used and the collection of financial and non-financial data. There are total three generation of balanced score card that are being available. However, these report has discussed about only the first generation balanced score card.

References

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Apiti, C.U., Ugwoke, R.O. and Chiekezie, N.R., 2017. Intellectual capital management and organizational performance in selected food and beverage companies in Nigeria. International Journal of Advanced Scientific Research and Management, 2(1), pp.47-58.

Awadallah, E.A. and Allam, A., 2015. A critique of the balanced scorecard as a performance measurement tool. International Journal of Business and Social Science, 6(7), pp.91-99.

Boscia, M.W. and McAfee, R.B., 2014, January. Using the balance scorecard approach: A group exercise. In Developments in Business Simulation and Experiential Learning: Proceedings of the Annual ABSEL conference (Vol. 35).

Broccardo, L., 2015. The Balance Scorecard implementation in the Italian health care system: some evidences from literature and a case study analysis. Journal of Health Management, 17(1), pp.25-41.

Cheowsuwan, T., 2016. The strategic performance measurements in educational organizations by using balance scorecard. International Journal of Modern Education and Computer Science, 8(12), p.17.

Chung, J.F., Bao, G.C. and Shaw, K.C., 2016. Effectiveness of combining bonus plan and balanced scorecard. Northeast Decision Science Institute Proceedings, 11(8), pp.120-125.

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New Balanced Scorecard solution for BIG AT GOOD SOLUTIONS, including corresponding implementation strategy

Dagman, V. and Frykman, E., 2015. A study of policy makers' view upon the link between sustainability and management accounting.

Effendi, A.Y., Soebijono, T. and Rahmawati, E., 2018. PERFORMANCE ASSESSMENT SYSTEM ARCHITECTURE OF RETAIL SHOPS IN PT. SURABAYA INTERNATIONAL STARS WITH THE BALANCED SCORECARD METHOD. Jurnal JSIKA, 7(1).

Fernando, M.S., Coonghe, K.D., Gunathilaka, L.F.D.Z. and Gunawardana, K., 2018. An Analysis of the Challengers and Barriers of Introducing the Balance Scorecard in Semi Government Catholic School in Sri Lanka.

Fooladvand, M., Yarmohammadian, M.H. and Shahtalebi, S., 2015. The application strategic planning and balance scorecard modelling in enhance of higher education. Procedia-Social and Behavioral Sciences, 186, pp.950-954.

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Jayawardena, A.D.T.S. and Rathnayaka, R.M.C.L.K., 2016. APPLICABILITY OF BALANCE SCORECARD IN SME’S: WITH REFERENCE TO COLOMBO DISTRICT.

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Saraswat, P., 2014. E-Dimension of Balance Scorecard: Strategy Implementation through IT. International Journal of Advances in Computing and Management, pp.2250-1975.

Schwieger, D., 2015. Using a Balance Scorecard Approach to Evaluate the Value of Service Learning Projects in Online Courses. Information Systems Education Journal, 13(5), p.4.

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Soleh, C.M., Fahmi, I. and Saptono, I.T., 2015. DESIGNING COMPANY PERFORMANCE MEASUREMENT SYSTEM USING BALANCE SCORECARD APPROACH. Indonesian Journal of Business and Entrepreneurship (IJBE), 1(2), p.63.

Sreelakshmi, G. and Rao, D., 2017. Implementation and Practicalities of Balance Scorecard: A Case Study.

Syahdan, S.A., Munawaroh, R.S. and Akbar, H.M., 2018. Balance Scorecard Implementation in Public Sector Organization, A Problem?. International Journal of Accounting, Finance, and Economics, 1(1), pp.1-6.

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Tizroo, A., Esmaeili, A., Khaksar, E., Šaparauskas, J. and Mozaffari, M.M., 2017. Proposing an agile strategy for a steel industry supply chain through the integration of balance scorecard and Interpretive Structural Modeling. Journal of Business Economics and Management, 18(2), pp.288-308.

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