Contents1 Introduction.........................................................................................................................................1

2 Porter's National Diamond Model.......................................................................................................1

3 Applying Diamond Porter model On PRAN-RFL Group........................................................................2

3.1 Factor Condition.........................................................................................................................2

3.1.1 Traditional factor of production...........................................................................................3

3.1.2 Advanced resources.............................................................................................................3

3.2 Demand condition.......................................................................................................................4

3.2.1 Home demand Conditions...................................................................................................4

3.2.2 Demandsize and pattern of growth.....................................................................................5

3.2.3 Internationalized of domestic demand................................................................................5

3.2.4 The interplay of demand condition......................................................................................5

3.3 Related and supporting industries...............................................................................................6

3.4 Firm strategy, Structure and rivalry.............................................................................................7

3.5 The role of government...............................................................................................................9

4 Balanced Scorecard Model..................................................................................................................9

4.1 Background and History...............................................................................................................9

4.2 Design........................................................................................................................................10

4.3 Perspectives...............................................................................................................................11

4.3.1 The Learning & Growth Perspective..................................................................................11

4.3.2 The Business Process Perspective......................................................................................12

4.3.3 The Customer Perspective.................................................................................................12

4.3.4 The Financial Perspective...................................................................................................12

4.4 Key Performance Indicators (KPI) in each perspective...............................................................12

4.5 Strategy Map.............................................................................................................................13

4.6 Strategy Matrix..........................................................................................................................15

4.7 Criticism.....................................................................................................................................16

5 Conclusion.........................................................................................................................................16

1 Introduction

PRAN-RFL has started its operation in 1981 as a processors fruit and vegetable in Bangladesh. Over the years, the company has not only grown in stature but also contributed significantly to the overall socio-economic development of the country. Pran is currently one of the most admired food & beverages brands among the millions of people of Bangladesh and other 106 countries of the world where PRAN-RFL products are regularly being exported.

PRAN RFL is currently producing more than 200 food products under 10 different categories i.e. juices, drinks, mineral water, bakery, carbonated beverages, snacks, culinary, confectionery, biscuits & dairy. The company has adopted ISO 9001 as a guiding principle of its management system. The company is complaint to HACCP & certified with halal which ensures that only the best quality products are reaches to the consumers table across the globe.

2 Porter's National Diamond Model

Michael Porter’s diamond model gives a very clear idea about competitiveness. Often there exist confusions about the competitiveness. Sometimes competitiveness is seen and described from a firm’s point of view and sometimes competitiveness is also seen and described from a country’s point of view. However, Michael Porter showed his excellence in the diamond model by distinguishing the view of seeing the competitiveness (Brian, S & George, S. 2006).

In addition, Michael Porter raises “the relevance of the competitiveness of a country and concludes that the success of nations is largely due to the same circumstances that support the development of the most appropriate strategy for a particular sector. Explain that companies are in particular nations achieve international success since it is these that provide features to create and maintain a competitive advantage” (Vega &Humberto 2011, 112-141)

Michael Porter’s diamond model has mainly four determinants and the determinants are inter-related to each other. The determinants are: firstly factor conditions, secondly demand conditions, related and supporting industries is the third determinant and the last determinant among the four is firm strategy, structure and rivalry. However, the expansion of the model was seen when there two extra determinants namely chance and the role of government.

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Figure 1: Porter Diamond's Model

3 Applying Diamond Porter model On PRAN-RFL Group

PRAN has started its operation in 1981 as a processors fruit and vegetable in Bangladesh. Over the years, the company has not only grown in stature but also contributed significantly to the overall socio-economic development of the country. PRAN is currently one of the most admired food & beverages brands among the millions of people of Bangladesh and other 106 countries of the world where PRAN products are regularly being exported. We try to apply porter Diamond theory to established their business. This analysis is the most important factor of porter diamond. These are Factor conditions, Demand conditions, Related and supporting industries, Firm strategy, structure and rivalry, Government, Chance. When they are satisfied then they are going to establish their

3.1 Factor Condition

Factor condition is the first and the most important determinant among the six categories of determinants. Factor condition basically covers the fact of productions and the importance of production in any production based industry. These factors can be grouped into human resources, material resources, capital resources and infrastructure. Porter further categorized two categories like:

Traditional factor of production Advances factor of production

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Related and supporting industries

FACTOR

CONDITION

Firm strategy, Structure and rivalry

Demand condition

Government

3.1.1 Traditional factor of production

Human resources, physical resources, climate, geographic location ,demographics are focus on basic factor. PRAN-RFL Group is very much selective in case of selecting raw materials. This group has been collective raw material & ingredients from best sources around the globe like – China, Japan, India, Newzealand . In locally PRAN is collecting raw material form Nator, Chapinobabgonj, Comilla, Rajshahi, Bandorban, Pabna through contract framing.So,their raw materials cost as well as their labor cost is low. Bangladesh are blessed with a climate ideally suited to agriculture, specially fruits and vegetables-rich in taste and flavor: sweet, mellow and juicy.So, Pran RFL gets quality raw materials within reasonable price. They have factories in Gazipur, Rangpur, Sylhet it is their another advantages of land. Transportation cost of raw material from farmer to factories became very low. This clearly carries the indication that the cheap labor, land and raw materials which were the main advantage for Bangladesh to bloom the industry at the beginning probably in the near future it would not be an advantage anymore because the labor and raw materials cost in Bangladesh have also increased in recent years. Therefore, to have a sustained superior firm performance and be competitive in the western and eastern market the most important issue is to transform all the necessary general factor conditions into advanced factor condition.

3.1.2 Advanced resources

Knowledge resources, capital resources and infrastructure are advanced factor of endowments. PRAN RFL has also advanced technology to produce quality and standard product PRAN is continuously updating its technology because it is bringing new product almost every day according to their customer preferences. In order to maintain quality we focus on most advanced technology, high graded raw materials and regular test facilities with skilled researchers in the factory premises. They have an international standard check list of quality in our factory. These advantages help them to gain competitive advantage both in local and foreign market. PRAN RFL group has Halal, Haccap, certification which ensure its quality home & aboard.

1. Juice & Drinks it is using China Machine

2. Snacks – China & USA machine

3. Toast & Biscuit – Japanese Machine

4. Candy- Japanese Machine

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3.2 Demand condition

Porter’s demand condition is basically based on domestic market demand where he suggested four aspects that can contribute to compete globally. The four aspects of demand condition is given namely in the chart below.

Figure 2 :Aspects of Diamond's Conditions

3.2.1 Home demand Conditions

Home demand composition by Porter (1990) is driven by some major issues such as how much anticipation the domestic buyers have, how demanding and sophisticated the buyers are and many more. Porter also added that home demand provides the idea how the firms perceive to the demand of the local buyers. In many cases, high anticipations and high demand from the domestic buyer force the firms to be more innovative and competitive and this can work as an advantage for an industry. A country like Japan has got more competitive advantage in technology than any other country mainly because the high anticipation and demanding nature of the domestic buyers from the firms and this anticipation from the buyers insist companies to be more technologically advanced. On the contrary, if the anticipation is low and the local buyer is not so demanding then it is an obvious disadvantage for the country’s industries. PRAN RFL is able to exploit local demand. Continuous innovation helps PRAN to meet local demand and expand their business in internationally.

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Home demand conditions

Demandsize and pattern of growth

Internationalized of domestic

demand

The interplay of demand

condition

3.2.2 Demandsize and pattern of growth

Factors such as size of home demand, growth rate of home demand comprise the demand size and pattern of growth which are also being called demand related factors and they also have great impact on national competitiveness (Porter 1990). Size of the home demand is the decider of investment, if the size of the home demand is large then it is probable to see aggressive investment in the firm but if the firm size is small then it is probable that the investors of the firm would be demoralized to invest and as a result the productivity improvement and technology development will not be powered. He points out that a nation with a higher growth rate is tends to adapt to new technology faster. Adding to the idea, he suggested, having a high growth rate of home demand would play an important role in the circumstances where the time of changing the technology is fast. Subsequently, Porter’s (1990) “diamond” will hold true in the case of PRAN RFL company only if the industry can keep pace with the digital technological development results from the internet bloom. PRAN RFL plastics achieve economies of scale due to spreading advertising expenditures overlarge markets. Economies of scope due to building a reputation of one product in the product line benefiting other products as well. For example, RFL food and household plastic products effective message is widely available and its ads would thus have a higher impact on its furniture products. Spreading Advertising Costs over larger markets. In global market, PRAN RFL truly strive to exceed ourselves every year. Therefore, PRAN RFL are growing like anything in whichever market they operate. To accelerate continuous growth, they already set up a production plant in India and production has already been started.

3.2.3 Internationalized of domestic demand

In regard of demand conditions from Porter (1990), internationalization of domestic demand plays a key role in competitiveness. Porter (1990) explains breaking the barriers of culture and highlighting the local demand to the foreign consumers. Here suppliers can play a vital role. They can present their product to the new market by highlighting the feature of it and also by showing them the local demand for the product as a reference. Another way to convert local demand into foreign demand is the one typical way through training of foreigners in the country in question. Another is through exports that disseminate culture, such as film and television programs (John k. 2007,46).

3.2.4 The interplay of demand condition

Porter (1990) while presenting the relationship of demand conditions described the role of domestic demand at the initial stage and domestic demand at sustainable stage. He expressed positively that demand factors like size of domestic demand, growth rate of domestic demand are some of the demand factors that are required at the initial stage of gaining competitive advantage. For instance, Bangladesh is the most densely populated country and it has a very large population (world fact book, 2014) so it is obvious that the demand for food, beverage and

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plastic are very high and it is an important aspect in gaining the competitive advantage at the initial stage. However, these initial domestic demands later push the industry to be more innovative in order to sustain the competitive advantage that they gain initially. Whereas PRAN RFL is quite able to meet up domestic demand that can interplay to the initially given competitive advantage in order to be competitive in the western world. Domestic market size of food and beverage product is $714 million. In that situation RFL food and beverage extend its boundary by serving in Europe, Gulf, Asia and America of around more than 36 countries in the globe. Currently they are operating their own distribution channel in the below countries:

India Nepal Africa UAE

3.3 Related and supporting industries

The third determinant of Porter’s (1990) “diamond” theory is related and supporting industries where he stated the importance of the related and supporting industries and how they contribute to the national competitiveness. He also asserted that “the presence of supplier and related industries within a nation that are internationally competitive provides benefits such as innovation, upgrading, information flow, and shared technology development which create advantages in downstream industries. In Bangladesh, PRAN-RFL Group is very much selective in case of selecting raw materials. This group has been collective raw material & ingredients from best sources around the globe like – China, Japan, India, Newzealand . In locally PRAN is collecting raw material form Nator, Chapinobabgonj, Comilla, Rajshahi, Bandorban, Pabna through contract framing. So quality is hundred percent ensured here .Bangladesh are blessed with a climate ideally suited to agriculture, specially fruits and vegetables-rich in taste and flavor: sweet, mellow and juicy. Their native farmer is our supplier. They collect major portions of our raw materials from them. They give values to their activities. Most of \farmers were deprived of proper price for their produces. They have been helping them to overcome this situation by practicing contract farming. For their machinery support they collaborate with China, Germany, Malaysia etc.

Their trade partners are our great support. Through them, they reach to their ultimate consumers. They provide support to their entire our promotional activities and merchandising program. They care for our trade partner.

Now, They have a customer care wing to listen to them. Their aim to build a strong long term business relationship by taking them through the journey of relationship disposition funnel and expect them to become our advocates in our BusinessThey are proudly covering 64 districts in Bangladesh. They are acting local-being global, serving thousands of companies and countries worldwide through strategic geographic distribution. In

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Dhaka PRAN RFL collaborates with famous distribution department like Almas, Agora, Nandon, Meena Bazar etc.In many countries, especially USA (NY), Australia, UAE, Saudi-Arabia, Qatar, India, Oman, Malaysia, Singapore, Somalia we have got our own sales and distribution network equipped with full fledged office. With office, warehouse, distribution vehicles, sales force, & other sophisticated supports, we are extremely aggressive to be the market leader in each and every category we operate.Last but not the least; along with existing presence in African, Asian & European markets, we eagerly look forward to having a stronger and more vibrant presence in every corners of global market

3.4 Firm strategy, Structure and rivalry

The fourth determinant of Porter in gaining competitiveness in the national level focuses on organizational strategy, structure, and rivalry. It is also undeniable how important these components are domestically. In addition,“the conditions in the nation governing how companies are created, organized, and managed, as well as the nature of domestic rivalry”(Porter, 1998, 107). However, according to the “diamond” theory there is a sharp difference between the existed firm strategy and Porter describes firm strategy. In order to achieve the competitive advantage, company goals and ownership structure are given most priority. For the case of, PRAN RFL commitment towards work is widely visible and they perceive an environment where people are closely attached with their work since they get full ownership of it. As a result each triumph is being purely cherished by our people.They ensure a sound and healthy environment among our employees and aspire to build strong teams in order to achieve success through their work. This large operation around the world today is only being possible for intensive hard work of their people. Strong motivation for work, clear vision towards success, true desire to be the best make us different from others and they cherish this in our work process. Their employees are their best resource. RAN RFL give values to their employees’ creativity and innovation. Their culture begins with their four values that drive everything they do: Integrity, Continuous Innovation, Involvement and Self-respect. They help their employees’ growth. They give their employee proper training and development. They encourage employees to ask questions and make suggestions that they think better.

They are the one amongst the few in Bangladesh who has a culture of profit sharing management. Their employees are dedicated to the success of our business. They treat their employees as a core resource and family member. The managing director of PRAN group decided to go for IPO for several reasons:

to raise funds for expansion of operations to secure an easier access on future capital on more favorable terms to enhance company's reputation and credibility to increase market awareness of the company and it's product

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to attract and retain employees to obtain market valuation of the company going public is one kind of promotion of a company and it's product to obtain more favorable loan term from lenders to improve company's debt to equity ratio

Competitor Profiling

Name Choice share

Pran- food ltd.

The PRAN foods factory has expanded substantially over the years in all spheres of food processing e.g. bottling, canning, pulping, pickling, concentrating, dehydrating as well as installation of Bangladesh first Tetra -Pak facility

40 80.3 billion 38%

Ahmed food products ltd.

The most popular name for food products in Bangladesh is probably Ahmed Food Products ltd. They are exclusively known for their pickling sauce.

10 60.6 10%

Fuwang ltd.

They produce a comprehensive range of foods, beverage and ceramic tiles with high quality and standards. We constantly innovate by frequently introducing new foods and beverage creations

15 65.3 14%

Aftab foods bangladesh

Aftab foods ltd has started his journey in corporate world in the middle of august 2010,with a promise to serve quality food products for the nation

15 70.3 10%

Alamin group

One of the largest group of companies in Bangladesh. Primarily producing food products, bread, biscuits pharmaceuticals, beverage etc.

05 40.6 10%

All above these helps PRAN RFL to gain sustainable competitive advantages.

3.5 The role of government

Competitive advantages do not take place simultaneously; someone must be there to influence the competitiveness, and according to Porter the influential role in played by government. He

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added that it is not the government who is responsible for creating competitive advantage for the firms, it is rather the firms who will create it but the government will only influence it. Basically, the role of government here is to make sure the other four determinants are working properly leading gain the competitive advantage. In fact, the tax policy of the government, enforcement of antitrust laws, regulations of capital market are some of the policies that can lead companies towards competitive advantage. PRAN- RFL get some sort of tax rebate to expand in locally. To encourage them in exporting their product in foreign market govt. impose low vat and reduce some barriers.

4 Balanced Scorecard Model

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

4.1 Background and History

The Balanced Scorecard came into being in the late 1980s and early 1990s as a method to help companies manage their increasingly complex and multi-faceted business environments.

Corporations then were faced with a number of challenges. Market share in many industries was vanishing at an alarming rate due to globalization, liberalization of trade, technology innovation, and domestic quality issues. The economy was in transition from product-driven to service-driven. The composition of the workforce was changing, and companies’ workforce needs were changing.

In spite of all these changes, most businesses still relied on traditional measures of performance based on a centuries-old accounting model, which failed to accurately reflect the true health (and future prospects) of an organization. The need for better information to respond to rapidly changing market conditions was obvious.

In response to these stresses, and the shortcomings of traditional financial performance measures, Professor Robert Kaplan and David Norton began to shape the concept of the Balanced Scorecard during a research project with 12 companies in the late 1980s. They understood the limitations of relying too much on purely financial measures. They realized that many of the ways to improve short-term financial performance—such as reducing headcount, and cutting expenses for training, R&D, marketing, and customer service—might be detrimental to the future financial health of the company. Conversely, companies might appear to be doing poorly from a financial perspective because they were investing in the core capabilities that could drive superior future performance. Furthermore, they perceived the limitation of reliance on lagging indicators that convey past performance results, but do not generally provide a reliable indication of future performance.

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Kaplan and Norton also perceived that employees throughout a company often did not understand how their role related to strategy and financial measures, leading employees to feel powerless to impact the things that were being measured.

So, Kaplan and Norton introduced the Balanced Scorecard as a way for companies to measure and report performance in a way that balanced:

Multiple perspectives.

Both leading and lagging indicators.

Inward-facing measures, like productivity, and also outward-facing measures, like customer loyalty.

The results of their initial research work with 12 companies were published in 1992 in the Harvard Business Review. Fueled by the positive response to their initial article and successful consulting work, Kaplan and Norton continued to develop the concept of the Balanced Scorecard, and published the book, The Balanced Scorecard in 1996.

4.2 Design

Design of a balanced scorecard is about the identification of a small number of financial and non-financial measures and attaching targets to them, so that when they are reviewed it is possible to determine whether current performance 'meets expectations'. By alerting managers to areas where performance deviates from expectations, they can be encouraged to focus their attention on these areas, and hopefully as a result trigger improved performance within the part of the organization they lead.

The original thinking behind a balanced scorecard was for it to be focused on information relating to the implementation of a strategy, and over time there has been a blurring of the boundaries between conventional strategic planning and control activities and those required to design a balanced scorecard. This is illustrated well by the four steps required to design a balanced scorecard included in Kaplan & Norton's writing on the subject in the late 1990s:

1. Translating the vision into operational goals;2. Communicating the vision and link it to individual performance;3. Business planning; index setting4. Feedback and learning, and adjusting the strategy accordingly.

These steps go far beyond the simple task of identifying a small number of financial and non-financial measures, but illustrate the requirement for whatever design process is used to fit within broader thinking about how the resulting balanced scorecard will integrate with the wider business management process.

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Although it helps focus managers' attention on strategic issues and the management of the implementation of strategy, it is important to remember that the balanced scorecard itself has no role in the formation of strategy. In fact, balanced scorecards can co-exist with strategic planning systems and other tools.

4.3 Perspectives

The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives:

Figure3: Balanced Scorecard Model

4.3.1 The Learning & Growth Perspective

This perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. In a knowledge-worker organization, people -- the only repository of knowledge -- are the main resource. In the current climate of rapid technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode. Metrics can be put into place to guide managers in focusing training funds where they can help the most. In any case, learning and growth constitute the essential foundation for success of any knowledge-worker organization.

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Kaplan and Norton emphasize that 'learning' is more than 'training'; it also includes things like mentors and tutors within the organization, as well as that ease of communication among workers that allows them to readily get help on a problem when it is needed. It also includes technological tools; what the Baldrige criteria call "high performance work systems."

4.3.2 The Business Process Perspective

This perspective refers to internal business processes. Metrics based on this perspective allow the managers to know how well their business is running, and whether its products and services conform to customer requirements (the mission). These metrics have to be carefully designed by those who know these processes most intimately; with our unique missions these are not something that can be developed by outside consultants.

4.3.3 The Customer Perspective

Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this perspective is thus a leading indicator of future decline, even though the current financial picture may look good.

In developing metrics for satisfaction, customers should be analyzed in terms of kinds of customers and the kinds of processes for which we are providing a product or service to those customer groups.

4.3.4 The Financial Perspective

Kaplan and Norton do not disregard the traditional need for financial data. Timely and accurate funding data will always be a priority, and managers will do whatever necessary to provide it. In fact, often there is more than enough handling and processing of financial data. With the implementation of a corporate database, it is hoped that more of the processing can be centralized and automated. But the point is that the current emphasis on financials leads to the "unbalanced" situation with regard to other perspectives. There is perhaps a need to include additional financial-related data, such as risk assessment and cost-benefit data, in this category.

4.4 Key Performance Indicators (KPI) in each perspective

The following KPIs are the available examples - each company can decide which KPIs to choose.

Financial perspective

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Return On Investment (ROI) Financial Results Cash Flow

Customer perspective

Customer satisfaction rate Customer percentage of market

Internal Business Process perspective

Number of activities per function Duplicate activities across functions Process automation

Learning and growth perspective

Incidence rate Turnover of employees Training/Learning opportunities

4.5 Strategy Map

Mapping a strategy is an important way to evaluate and make visually explicit an organization’s perspectives, objectives, and measures, and the causal linkages between them. Organizing objectives in each defined perspective, and mapping the strategic relationships among them, serves as a way to evaluate objectives to make sure they are consistent and comprehensive in delivering the strategy.

The strategy map is a visual way to communicate to different parts of the organization how they fit into the overall strategy. It facilitates cascading a balanced scorecard through an organization, because it can be created at different levels of an organization, and each level’s map can be viewed for alignment with the overall strategy map.

As for example a strategy map for Pran foods is given where financial perspective is linked to the customer perspective, customer perspective is linked to the business process perspective, business process perspective is linked to the learning and growth perspective. And all the four perspectives are connected to the mission and vision of the company.

Vision: Improving Livelihood

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Mission: To generate employment and earn dignity & self-respect for our compatriots through profitable enterprises.

Financial Perspectives

Increase total revenue

RESULTS IN

Customer Perspective

Achieve customer satisfaction

RESULTS IN

Internal Process Perspective

Add new products to the product line

RESULTS IN

Learning and Growth Perspective Innovating and implementing new business ideas

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4.6 Strategy Matrix

The strategy matrix is an useful visualization and summarization tool. It displays objectives, measures, targets, and initiatives in one table. The strategy matrix can point to areas where scorecard elements might be out of balance.

Objectives are desired outcomes. The progress toward attaining an objective is gauged by one or more measures. As with perspectives, there are causal relationships between objectives. In fact, the causal relationship is defined by dependencies among objectives. So, it is critical to set measurable, strategically relevant, consistent, time-delineated objectives.

Measures are the indicators of how a business is performing relative to its strategic objectives. Measures, or metrics, are quantifiable performance statements.

An initiative is a change process or activity designed to achieve one or more objectives. The initiative is what will move a measure toward its target value. Initiatives may be large or small in scope. They generally are owned by a person or group, and are managed like projects.

For example, for Pran foods there is an initiative around one objective, there is a realistic measure and there is supporting numerical target for each of the Financial perspective, Customer perspective, Internal business process perspective and Learning and growth perspective.

 Objective Measure Target Initiative

FinancialIncrease total revenue

% Revenue from stores throughout the country

10% increase in revenue from the previous year

Marketing to new target markets to all remote villages of the country

Customer

Achieve customer satisfaction

Average no. of daily customers

Increase the no. by 5% than the previous year

Local marketing campaigns

No. of repeat customers

To hold at least 80% of the present customers

Customer loyalty program

Avg. amount of customer purchase

Increase the amount by 5% than the previous year

Coupon program

In-store promotions & classes

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ProcessAdd new products to the product line

Customer preferences

To serve all customer segments

Market survey

Learning & Growth

InnovationTotal no. of generated ideas

Implement the new ideas

Bonus for the successful idea generator

Motivate, recognize and retain staff

Employee performance

Achieve the ascertained target

Better environment, Training programs

4.7 Criticism

The balanced scorecard has attracted criticism from a variety of sources. Most have come from the academic community, who dislike the empirical nature of the framework: Kaplan and Norton notoriously failed to include any citation of earlier articles in their initial papers on the topic. Some of this criticism focuses on technical flaws in the methods and design of the original balanced scorecard proposed by Kaplan and Norton, Other academics have simply focused on the lack of citation support.

A second kind of criticism is that the balanced scorecard does not provide a bottom line score or a unified view with clear recommendations: it is simply a list of metrics. These critics usually include in their criticism suggestions about how the 'unanswered' question postulated could be answered, but typically the unanswered question relate to things outside the scope of balanced scorecard itself (such as developing strategies).

A third kind of criticism is that the model fails to fully reflect the needs of stakeholders - putting bias on financial stakeholders over others.

5 Conclusion

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