STEEPLE and Balance Scorecard Essay Example for Free

STEEPLE and Balance Scorecard EssayWhen a firm uses an orthogonal consultant to solve a problem or evaluate an opportunity the consultant loafer use STEEPLE (social, technological, economic, environmental, legal, and honest), which is a preliminary analysis technique to answer why the business organization or placements exist (Wickham, Wickham, 2008, p. 128). This analysis the consultant preforms helps to determine how the firm business fits in its external environment. The consultant notify also use the counterbalances scorecard to mea certain the financial and non-financial performance of the firm. The consultant go forth use the STEEPLE and Balance Scorecard to analyze Phillip-Morris introduction of its electronic cigarettes in the grocery. In addition, the consultant will make any recommendation to Phillip-Morris from the results of the STEEPLE and Balance Scorecard analysis.STEEPLE AnalysisThe STEEPLE analysis is and auxiliary of the PEST analysis. The PEST analy sis acronym stands for political, economical, social, and technological factors the firm may face in its external environment. This analysis is a form of system analysis that provides a structure for examining elements from the larger system of which the firm is a part of (Gustafson, 2002, p. 134) The STEELPE analysis includes the factors of the PEST analysis with the additions of the legal, environment, and ethical factors the firm can also face in its external environment. The consultant will examine the seven external environmental factors to solve the firms problem or opportunity in the market Sociological factors are trends and attitudes that can affect buying behaviors. The prejudicial publicity that firms, such as Phillip-Morris on the effects of smoking cigarettes, has altered societies view of Phillip-Morris. This has light-emitting diode to millions of individuals to stop smoking to make better his or her health status.Technological factors- Technology is constantly chan ging. This trend is that advanced technology generates new questions. The question for Phillip-Morris is does the firm shake off the knowledge for the human body, ingatheringion, and delivery of the product? If not, where can the firm gain the knowledge to produce such a product or use a trine party to produce it. Economic factors- the consultant will facial gesture at if the target market can afford the product. In addition, the consultant must interpret at if the Phillip-Morris can afford to borrow the necessary funds to produce the product. Environmental Factors- The consultant look at how the e-cigarettes will be packaged and what typeface of chemicals is going to be used in the production of the product. Depending on the package materials and the chemicals that are used in the production of the product can wee a negative effect on the environment.Green issues are important in society today, and the firm must take the issues of protecting the environment in in effect(p ) will when producing any product. Political and legal factors- relates to the government of a countries federal, state, and local anesthetic law passed by various governmental agencies. In this analysis the consultant must look at what laws and the attitudes of government agencies have been made for regulating smoking e-cigarettes. Ethical Factors- The consultant must look at how the product will be packaged, design and the marketing campaign to entice consumers to buy the product. This is because the negative publicity cigarettes firms marketing, packaging, and design its products to minors. If the product is produced to make smoking e-cigarettes is cool this can have a negative restore on the company, because it can entice minors to use the product. After conducting the STEEPLE analysis the consultant must determine where the firm has strengthens, weakness, threats, and opportunities in the intimate and external environment.Phillip-Morris has a negative sociological factor rega rding the views of consumers who uses the firms products. This negative view has made millions of customers to stop using the firms products. The technological factor, Phillip-Morris has does not have the knowledge of producing e-cigarettes. The firm will have to rely on a third party to produce the product. With the company not having the technology or the proficient know how to produce e-cigarettes the price of the product can be very expensive. This has a negative affect on the economical factor, because many consumers may not be able to afford theproduct. In addition, by the firm using a third party to produce the product the firm does not impress the risk of borrowing the necessary funds. The firm will not have any negative environmental factors of producing the product, because the third party will assume the risk.However, Phillip-Morris does impact the environment with its current production of making cigarettes. In the political and legal issues the firm can face is very l imited. Phillip-Morris will have to comply with federal, state, and local laws governing the legal age requirement for purchasing the product. The firm will have ethical issues if the packaging, design, and marketing is promoting the alternative way of smoking as cool. This can entice young society members to purchase and use the product. However, if its marketing, packaging, and design is to provide adults an alternative and health way of smoking. This will show society that the firm cares most the health of its customers and those who are affected by second hand smoke.Balance ScorecardThe balance scorecard gives the organization a total management system to help clarify its vision and strategy. In addition, this technique gives the usable selective information for the organization to take appropriate business actions, provides feedback to the internal business processes and the external outcomes to emend the firms strategic performance. According to the article Using the Balance Scorecard, written by Kaplan and Norton (1996), (pp. 75-85) the balance scorecard has four perspectives of Financial Perspectives- Phillip-Morris must balance its business functions which as been allocated across the organization. If the Phillip-Morris decides to increase its economic growth it can do this through a productivity strategy. Phillip-Morris can lower the direct and indirect expense to improve cost, or reduce working and fixed capital to utilize its assets to support the business Customer Perspectives- The value proposition of the customer is the mix of products, price, service, relationship, and Phillip-Morris image.With this perspective Phillip-Morris will have to take on its competition. The company will have to differentiate its value proposition. Phillip-Morris can do this by selecting different operational excellence, customer intimacy, and product leadership. Business Process Perspectives-This matric allows management to understand how efficiently the organizatio n is performing. It also helps Phillip-Morris to understand ifits products or services is meeting the customers needs. In addition, this perspective makes sure that the organization is align with the four high level business process of Building franchisesIncrease customer valueAchieving operational excellencesPhillip-Morris becoming a good corporate citizenLearning and Growth Perspectives- This perspective looks at the employee career growth, training, and the corporate culture for individual and the firms self-improvement. In addition, it looks at the knowledge enhancements that Phillip-Morris has to kick the bucket with employees and a mentor program. If Phillip-Morris can enhance employees learning and growth it can have a workforce to meet the firms strategic position. These perspectives allow the development of metrics, data analysis, and collection for the firm. Phillip-Morris is the largest tobacco firms and has a clear objective for its current and potential stockholders. T his objective can be to improve the financial side of the firm. In this human face the firm has the motivation to have long-term shareholder value, and avoiding the ethical issues that is associated with tobacco companies. By doing this Philip-Morris will neglect the customer, business process, and learning and growth perspective of the balance scorecard. Phillip-Morris must develop a different business strategy to have a more balanced scorecard.RecommendationsThe STEEPLE analysis shows Phillip-Morris has a negative sociological and technological factor. There are no environmental factors in producing e-cigarettes, and the political and legal issues will be the same as other tobacco products. The ethical factors can be a negative or positive depending on how the company package, design, and market the product. Phillip-Morris balance scorecard focuses on the financial perspective, while neglecting the threesome other perspectives. With Phillip-Morris focusing on the financial persp ective, and without the technical know how. It is recommended that Phillip-Morris look for a third party to produce its e-cigarettes. It is also the recommendation for Phillip-Morris to enter in a joint venture so it can gain the technical knowledge and have a completebalance scorecard.ReferencesGustafson, K. (2002). The future of instructional design. In R. Rieser J. Dempsey (Eds.), Trends and issues in instructional design and technology (pp. 333-343). Upper Saddle River, N.J. Merril/Prentice Hall Kaplan, R.S., Norton, D.P. (1996, January-February). Using the Balanced Scorecard as a Strategic guidance System. Harvard Business Review, 74(1), 75-85. ESBCO Host. Wickham, P., Wickham, L. (2008). Management consulting Delivering an effective project (3rd ed.). Harlow, England Pearson