Scenario In Project One: Applying Strategic and Operational Thinking, you prepared Key Performance Indicators (KPIs) for the marketing and sales departments of your product line.
Scenario
In Project One: Applying Strategic and Operational Thinking, you prepared Key Performance Indicators (KPIs) for the marketing and sales departments of your product line.
Now, the CEO has provided you with a revised set of KPIs. You need to apply these KPIs toward the analysis of a proposed marketing and sales initiative to increase loyalty card memberships in neighborhoods with predominantly low-income populations, whether the populations are in rural, suburban, or city locations.
The CEO wants this analysis so that she can chart the sustainability and growth of the initiative while assuring it meets standards for Corporate Social Responsibility.
The CEO has provided you with several documents, available in the Supporting Materials section of this project. She wants you to use the provided Triple Bottom Line Balanced Scorecard to assess the strategic plan’s compliance with the KPIs and summarize your findings in a memo.
Directions
Complete the following to provide the analysis required by the CEO:
- Identify the financial records that indicate commitment to TBL.
- Outline which financial and other records marketing and sales maintains where TBL can provide data.
- Using the TBL scorecard, evaluate the alignment of the strategic plan with KPIs. Remember, there may be multiple outcomes of this exercise. Your focus should be to apply your understanding of the scenario and evaluate the plan accordingly.
- Which ideas in the plan support the KPI criteria? Cite specific ideas that meet the criteria.
- Explain how they meet the criteria.
- In your memo:
- Describe how the TBL data relates to the KPIs.
- Identify which additional TBL financial line items are needed to measure the cost for each criterion.
For example, should there be a line entry for hiring temporary workers? - Referring back to the SWOT analyses from Project One, explain how functional considerations of individual departments contribute to financial performance.
What to Submit
To complete this project, you must submit the following:
KPI and Triple Bottom Line Balanced Scorecard
- Complete and submit the KPI and Triple Bottom Line Balanced Scorecard. In the scorecard spreadsheet, identify one additional KPI, a related SMART objective, and its measurement criterion. You need to do this for all three elements of TBL: people, planet, and profit. You have been provided with one example for each TBL element.
Analysis Memo
- In a Word document, write a memo outlining your analysis. Ensure that the memo is organized by TBL element with a header for each segment of your analysis. The Word document should use double-spacing, 12-point Times New Roman font, and one-inch margins. This memo should be no more than 6 pages in length, and include references cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.
Supporting Materials
The following resource(s) may help support your work on the project:
The following resources support your work on the project:
Document: Consolidated Balance Sheet
This is a consolidated balance sheet for the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: Consolidated Cash Flow Statement
This is a consolidated cash flow statement for the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: Consolidated Income Statement
This document is a consolidated income statement and a consolidated statement of comprehensive income of the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: KPI and Triple Bottom Line Balanced Scorecard
This is the final and authoritative draft of the KPI Scorecard the CEO wants you to use. This scorecard provides three KPIs: one for a social measure (people); one for an environmental measure (planet) and one for an economic measure (profits). You need to identify three more KPIs and associated information.
Document: Marketing and Sales Executive Summary
This is a proposal from the sales and marketing departments to increase rewards memberships in low-income markets. This summary includes a high-level estimate of projected sales, costs, and profits.
Document: SWOT Analyses from Sales and Marketing
This document contains a combined SWOT analysis from the two departments.
Project Two Guidelines and Rubric1.html
Competency
In this project, you will demonstrate your mastery of the following competency:
- Assess current performance of an organization through analysis of financial statements.
Scenario
In Project One: Applying Strategic and Operational Thinking, you prepared Key Performance Indicators (KPIs) for the marketing and sales departments of your product line.
Now, the CEO has provided you with a revised set of KPIs. You need to apply these KPIs toward the analysis of a proposed marketing and sales initiative to increase loyalty card memberships in neighborhoods with predominantly low-income populations, whether the populations are in rural, suburban, or city locations.
The CEO wants this analysis so that she can chart the sustainability and growth of the initiative while assuring it meets standards for Corporate Social Responsibility.
The CEO has provided you with several documents, available in the Supporting Materials section of this project. She wants you to use the provided Triple Bottom Line Balanced Scorecard to assess the strategic plan’s compliance with the KPIs and summarize your findings in a memo.
Directions
Complete the following to provide the analysis required by the CEO:
- Identify the financial records that indicate commitment to TBL.
- Outline which financial and other records marketing and sales maintains where TBL can provide data.
- Using the TBL scorecard, evaluate the alignment of the strategic plan with KPIs. Remember, there may be multiple outcomes of this exercise. Your focus should be to apply your understanding of the scenario and evaluate the plan accordingly.
- Which ideas in the plan support the KPI criteria? Cite specific ideas that meet the criteria.
- Explain how they meet the criteria.
- In your memo:
- Describe how the TBL data relates to the KPIs.
- Identify which additional TBL financial line items are needed to measure the cost for each criterion. For example, should there be a line entry for hiring temporary workers?
- Referring back to the SWOT analyses from Project One, explain how functional considerations of individual departments contribute to financial performance.
What to Submit
To complete this project, you must submit the following:
KPI and Triple Bottom Line Balanced Scorecard
- Complete and submit the KPI and Triple Bottom Line Balanced Scorecard. In the scorecard spreadsheet, identify one additional KPI, a related SMART objective, and its measurement criterion. You need to do this for all three elements of TBL: people, planet, and profit. You have been provided with one example for each TBL element.
Analysis Memo
- In a Word document, write a memo outlining your analysis. Ensure that the memo is organized by TBL element with a header for each segment of your analysis. The Word document should use double-spacing, 12-point Times New Roman font, and one-inch margins. This memo should be no more than 6 pages in length, and include references cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.
Supporting Materials
The following resource(s) may help support your work on the project:
The following resources support your work on the project:
Document: Consolidated Balance Sheet
This is a consolidated balance sheet for the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: Consolidated Cash Flow Statement
This is a consolidated cash flow statement for the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: Consolidated Income Statement
This document is a consolidated income statement and a consolidated statement of comprehensive income of the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: KPI and Triple Bottom Line Balanced Scorecard
This is the final and authoritative draft of the KPI Scorecard the CEO wants you to use. This scorecard provides three KPIs: one for a social measure (people); one for an environmental measure (planet) and one for an economic measure (profits). You need to identify three more KPIs and associated information.
Document: Marketing and Sales Executive Summary
This is a proposal from the sales and marketing departments to increase rewards memberships in low-income markets. This summary includes a high-level estimate of projected sales, costs, and profits.
Document: SWOT Analyses from Sales and Marketing
This document contains a combined SWOT analysis from the two departments.
Project Two Rubric
| Criteria | Exemplary (100%) | Proficient (90%) | Needs Improvement (70%) | Not Evident (0%) | Value |
|---|---|---|---|---|---|
| Financial Records | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Identifies key financial records that indicate commitment to triple bottom line (TBL) | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include identifying appropriate financial records to assess the commitment to TBL | Does not attempt criterion | 18 |
| Evaluate for KPIs | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Evaluates the strategic plan for alignment with KPIs | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include aligning KPIs with the TBL factors of people, profit and planet | Does not attempt criterion | 18 |
| TBL Data and KPIs | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Identifies appropriate KPIs related to each element of TBL using SMART objective setting and clear measurement criteria | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include identifying appropriate KPIs related to at least one element of TBL using SMART objective setting and clear measurement criteria | Does not attempt criterion | 18 |
| Additional Line Items for Measuring Cost | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Identifies additional TBL financial lines needed to measure cost | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include identifying the financial records and line items therein, which measure TBL performance | Does not attempt criterion | 18 |
| Functional Considerations | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Explains how functional considerations contribute to financial performance | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include assessing the alignment of the departmental/ functional roles and their contributions to financial performance | Does not attempt criterion | 18 |
| Articulation of Response | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Clearly conveys meaning with correct grammar, sentence structure, and spelling, demonstrating an understanding of audience and purpose | Shows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, negatively impacting readability | Submission has critical errors in grammar, sentence structure, and spelling, preventing understanding of ideas | 10 |
| Total: | 100% |
Course Documents/Consolidated Balance Sheet for Rewards Program Product Line.xlsx
Course Documents/Consolidated Cash Flow Statement for Rewards Program Product Line.xlsx
CFS
| Consolidated Cash Flow Statement | |||
| for the year ended 31 December | |||
| $ thousand | $ thousand | $ thousand | |
| 2018 | 2017 | 2016 | |
| Cash Flow from Operating Activities: | |||
| Net Income | $ 18,565 | $ 11,423 | 10,784 |
| Adjustments to Reconcile Net Income to | |||
| Net Cash Flow from Operating Activities | |||
| Change in Accounts receivable | (3,696) | (1,263) | (2,750) |
| Change in Inventory | (3,863) | (339) | (1,335) |
| Change in Prepaid expense | (925) | 16 | (2,250) |
| Depreciation and amortization | 1,000 | 890 | 800 |
| Change in Accounts Payable | 311 | 1,031 | (1,525) |
| Change in Short term debt | 1,078 | (4,765) | 240 |
| Change in Deferred revenue | (547) | 357 | 432 |
| Change in Other current liabilities | (4) | 99 | 33 |
| Net Cash Flow from Operating Activities | 11,919 | 7,449 | 4,429 |
| Cash Flow from Investing Activities: | |||
| Cost of new Property, buildings, and equipment purchased | (6,974) | (1,708) | (200) |
| Cost of new Intangible assets | (810) | (632) | – 0 |
| Cost of new Other current assets | (2,355) | (56) | (25) |
| Net Cash Flow: Investing Activities | (10,139) | (2,396) | (225) |
| Cash Flow from Financing Activities: | |||
| Payments of Long-term debt | (285) | (2,374) | (1,150) |
| Change in Other noncurrent liabilities | (7) | (854) | (24) |
| Issuance of Common Stock | 14 | 10 | – 0 |
| Change in Additional paid-in-capital | 1,347 | 120 | – 0 |
| Payment of Dividends | (1,000) | (1,000) | (1,000) |
| Net Cash Flow: Financing Activities | 69 | (4,098) | (2,174) |
| Total Cash Flow increase/(decrease) | 1,849 | 955 | 2,030 |
| Cash Balance, Beginning | 4,272 | 3,317 | 1,287 |
| Cash Balance, Ending December 31 | $ 6,121 | $ 4,272 | 3,317 |
Course Documents/Consolidated Income Statement for Rewards Product Line.xlsx
IS
| Consolidated Income Statement | |||||
| for the year ended 31 December | |||||
| $ thousand | $ thousand | $ thousand | |||
| 2018 | 2017 | 2016 | |||
| Sales Revenue | $ 174,090 | $ 150,000 | $ 130,000 | ||
| Cost of Goods Sold | 93,000 | 88,000 | 75,000 | ||
| Gross Profit | 81,090 | 62,000 | 55,000 | ||
| Operating Expenses: | |||||
| Selling expenses | |||||
| Salary expense | 35,000 | 29,000 | 24,500 | ||
| Advertising expense | 8,000 | 7,500 | 6,800 | ||
| Administration expense | |||||
| Depreciation and amortization expense | 1,000 | 890 | 750 | ||
| Salary expense | 10,800 | 8,700 | 7,500 | ||
| Other Operating Expenses | 2,200 | 1,900 | 1,400 | ||
| Total Operating Expenses | 57,000 | 47,990 | 40,950 | ||
| Operating Income | 24,090 | 14,010 | 14,050 | ||
| Other Revenue and (Expenses) | |||||
| Charitable donations | 500 | 450 | 400 | ||
| Total Other Revenues and Expenses | 500 | 450 | 400 | ||
| Income Before Income Tax | 23,590 | 13,560 | 13,650 | ||
| Income Tax Expense | 5,025 | 2,137 | 2,867 | ||
| Net Income | $ 18,565 | $ 11,423 | $ 10,784 | ||
