Prepare a report for the management of Tesla Motors whichcritically examines how the adoption...

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Accounting

Prepare a report for the management of Tesla Motors whichcritically examines how the adoption of a Balanced Scorecardapproach could be used to measure the performance of theorganisation

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The balanced scorecard initially developed as a response to problems caused by evaluating managers only on the quarterly or annual financial performance of their business units If managers are evaluated and rewarded on only their units shortterm financial performance then that is what managers will primarily focus on This focus on shortterm financial performance often takes place to the detriment of other dimensions that may be equally or more important for improved longterm financial performance For example a focus on cost containment to improve quarterly results can result in a loss of quality due to the use of lowpriced but inferior manufacturing components The longterm result of loss of quality is loss of customers and ultimately loss of business The balanced scorecard includes both financial and nonfinancial measures in evaluating the overall contribution made by each unit to the achievement of company goals Financial measures that focus on shortterm financial performance are in fact lagging indicators of how the company is doing While the balanced scorecard does use financial measurements it also uses nonfinancial and operational indicators that measure the basic performance of the company and improvements it is making in those indicators Improvements in the nonfinancial measures provide the prospect of increased future economic value for shareholders Nonfinancial measures focus on performance that should ultimately result in improved longterm financial performance Thus nonfinancial measures are leading indicators of performance Developing a companys strategic plan includes Stating the companys goals Developing strategies to attain the goals Implementing the strategies The balanced See Answer

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In: AccountingPrepare a report for the management of Tesla Motors whichcritically examines how the adoption of...Prepare a report for the management of Tesla Motors whichcritically examines how the adoption of a Balanced Scorecardapproach could be used to measure the performance of theorganisation