Research On A Company’s Profitability Evaluation Based On Balanced Scorecard

Corporate profits come from customers.How can enterprises reduce costs and increase profits while taking into account customer satisfaction and loyalty? How to adapt to the needs of the market and customers,rationally allocate corporate resources to maximize corporate profits and reward stakeholders such as shareholders,employees,customers and society has always been a hot topic in academia.This paper uses literature review method and case study method to sort out the research status of customer profitability analysis,balanced scorecard,strategic performance management and other related theories,lists the role of research theories and tools,implementation methods and influencing factors.This paper takes Company A as the research object to carry out customer profitability analysis,uses the average progressive method as the basis for customer grading,identifies profitable customers,and puts forward A set of customer profitability evaluation indicators.This paper introduces the design principle and selection basis of evaluation index and enactment weighting by using superior order diagram.Then,combined with the operating conditions of Company A,the profitability evaluation is made based on the four dimensions in the balanced scorecard management tool.After that,countermeasures and suggestions were provided for the optimization of the profitability of Company A,and methods such as strategic map,thinking chart of enterprise profit optimization,summary table of action plan were drawn.The resource allocation with high profit customer satisfaction was always taken as the premise to ensure that the enterprise realized profit optimization.According to the results of CPA analysis,clarify customer costs,and shut down and transfer non-profit customers.Grasp the distribution of customer profits,observe the change of customer level liquidity,focus on high-profit customers to establish a competitive boundary,and point out the strategic direction for enterprises to improve profitability.The introduction of the balanced scorecard to highly profitable customers as the center,take the customer spending for the analysis of driving factors and eliminate process breakpoints,identify the key steps,find out the factors influencing customers purchasing,in order to set for the performance evaluation indicators,analysis and evaluation aspects need improvement,reasonable allocation of enterprise resources,enhance inter-departmental coordination,improve the enterprise competition force.Therefore,improve the satisfaction and loyalty of quality customers,increase more buyback opportunities to enhance enterprise value,and achieve a win-win situation between customers and enterprises.Taking the balanced scorecard as the basis of performance evaluation,the enterprise develops in a balanced way from inside to outside and from top to bottom.Effectively combine CPA and BSC tools to establish a mechanism for customer demand gathering and market feedback to test strategic assumptions.Combine data analysis information with decision making and performance evaluation to examine the health of business operation and timely capture the threat of competition and opportunities for development.Through the case demonstration of Company A,this paper explains the necessity of the implementation of profitability analysis,which can help enterprises with similar problems to establish strategic boundaries,clear strategic direction,clear market positioning.The balanced scorecard plays a comprehensive role in strategic communication,strategic formulation,action plan,execution efficiency,evaluation effect,timely monitoring and testing the rationality of strategy.