BALANCE SCORECARD

EXERCISE

B002 Vishal Garg

B008 Anshul Sharma
B011 Isha Patwardhan
B017 Jayash Kaushal
B038 Ajinkya Ambike
B045 Jijnyasa Patowary
  
 PEPSICO

Top Line

Financial Perspective
1. Goal: Revenue Growth and Profitability
Measurement: Annual revenue growth has been rising from 2% to 6% from last 4 years
due to rise in the Sales.
Target: Expected to reach a revenue growth of 10% in the next 2-3 years.

2. Goal: Cash on Hand

Measurement: A heavy cash-rich company which has been rising in the last two years.
There has been a rise of 50% of net cash in the last financial year.
Target: Targeting a continuous increase in cash on hand which can be used to meet our
expenses and have enough for further expansion.

Customer Perspective
1. Market Share
Goal: Pepsico currently holds a market share of 19.6% and is a market follower. The
goal is to not only maintain but also increase the market penetration and thus, the
market share.
Measurement:
● Innovation in its products
● Quality standards
● Maintaining and strengthening customer relationships
● Acquisition of new customers

2. Advertising Effectiveness
Goal: To measure and evaluate the reach and impact of advertising and improve their
effectiveness
Measurement:
● Advertise with metrics and clear goals
● Communication and sales effectiveness
● Advertise benefits at the right time
● Gauge response rate
● Appropriate media channels and messaging for the target audience

Internal Business Perspective

1. Goal: Capacity Utilisation and Process Efficiency
Measurement: Batches per facility, per year

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 PepsiCo aims to be very effective and efficient in their operations area. They want to
maximise their productivity-cost ratio for the same. Hence, Pepsico has decided to highly
invest in automation so they can have mass production at a low cost
2. Goal: Be a market leader
Measurement: New product ideas per year
FMCG is a very fast and changing industry. Companies need to be on their toes to make
sure that they stay relevant and are in-line with the changing tastes and preferences of
the consumer. Hence, PepsiCo makes sure that they keep innovating/developing their
existing products and make new ones. They are a pro-active company rather than a
reactive one

Learning and Growth Goals

1. Employee Health and Diversity

a. Goal: Focus on the health, safety and well being of employees along with
diversity and inclusion

b. Measurement
● Investing in emerging technologies which will help in reducing injuries and accidents,
and deployment of ergonomic risk reduction devices
● Policies to attract and retain talent diverse employees and help in strengthening the
reputation

2. Employee Growth and Development

a. Goal: To promote growth and and development of employee

b. Measurement
● Pep U Degreed (internal global learning resource)
● Mentoring and career development programs
● Minimum employee training hours
● Quarterly review and feedback

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Bottom Line

Financial Perspective

Goal: Revenue Growth and Profitability

Measurement:
Target:

Goal: Cash on Hand

Measurement:
Target:

Customer Perspective

1. Market Share
Goal: Increase the market penetration of Pepsico by maximizing its sales and customer
acquisition.
Measurement:
● Sales Volumes by Location, Retailers and SKUs
● Lead response time
● Sales Quota Targets and Results

2. Advertising Effectiveness
Goal: Measure and evaluate each of the advertising campaigns and ensure their
effectiveness.
Measurement:
● Pre and Post Campaign Sale Volumes
● Cost benefit analysis
● Customer Surveys
● Brand Recall Rates

Internal Business Perspective

Goal : Capacity Utilisation and Process Efficiency

Measurement : Batches per facility, per year

● Technology and automation to boost productivity
● Execution of action plans to guarantee that business operations are both cost-effective
and of high quality.
● Process Mapping and Cellular Manufacturing to optimize the utilization of the plant and
equipments

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Goal : Be a market leader
Measurement: New product ideas per year
● Brainstorming sessions to generate ideas
● TQM and Quality Audits to ascertain that product meets quality control specifications
and standards.

Learning and Growth Goals

Employee Health and Diversity

Goal: Maintain physical and mental well-being in a diverse environment while
working on business problems

Measurement
● Health camps
● Physical fitness centre
● Inclusion and Diversity Policies

Employee Growth and Development

Goal: Work in a dynamic environment and learn business aspects

Measurement
● Undergo training and developments programs to upskill
● Feedback as a part of performance