Introduction
El Corte Ingles is one of the biggest retail department stores in the world, with a central office in Madrid, Spain. The company deals in many products, including clothing, bedding, footwear, accessories, furniture, beauty products, and jewelry. Despite tremendous growth, El Corte Inglés has experienced various challenges. The commercial battle with competitors necessitates strategic management and deployment of tools to help evaluate performance.
The Balance Scorecard evaluates the firm’s feat from four stances: customer perspective, financial view, internal processes, and learning and growth (Nordström, 2022). The four perspectives address objectives, targets, measures, and initiatives to assess the company’s performance in-depth. The paper formulates a balanced scorecard that offers profound insights into the business for realizing long-term success.
Balance Scorecard Four Viewpoints
Customer Perspective
The company’s objective is to secure the clients’ trust and respond to their needs effectively to promote business growth. Customer satisfaction can be measured by assessing the custom feedback index and the total number of customers gained during the review period (El Corte Inglés, n.d.). El Corte Inglés can attain this strategy by deploying various initiatives, including enhancing product quality, deploying innovative and excellent services, and providing a boundless assortment of products that address new market demands and trends. The target is to place the company on a trajectory for enhanced growth and sustainability. With immense competition exerted by fierce rivals such as Amazon, steps that would make the store more attractive would go a long way in strengthening its place in regional and global markets.
Financial Perspective
The financial objective of El Corte Inglés is to increase fiscal incomes and implement cost reduction strategies. The objective can be measured by evaluating the market share and reviewing the annual revenue growth. The annual fiscal data shows that El Corte Inglés ended the 2020 fiscal year with a consolidated turnover value of about €10,432 million (El Corte Inglés, n.d.). Reduced revenues in the 2020 financial year occurred due to the ravaging health crisis that closed various business lines, especially during lockdowns. El Corte Inglés targets to expand revenues, increase profitability, and create value for shareholders. The perfect initiative for the company to attain the desired financial perspective is increasing product diversification, venturing into the inevitable digitalization, and moving into absolute recovery.
Internal Business Processes
El Corte Inglés’ primary objective is to streamline internal processes for enhanced operational efficiency. The business targets service digitalization, as illustrated by launching an online service click to complement the physical stores and promote synergy (El Corte Inglés, n.d.). The best initiative to attain this goal is to fuse the online and offline models to allow customers to choose any channel based on their needs and moments. The objective will be measured by assessing the app and website activities.
Learning and Growth
The company’s objective is to establish a strong brand that can handle current and future needs—the firm targets to establish a synergy between offline and online stores. Part of the initiative for this objective is to develop an alternative omnichannel that allows customers to select the preferred mode of purchase (El Corte Inglés, n.d.). Moreover, El Corte Inglés targets increasing service offerings over the years to spur anticipated growth and sustainability.
Conclusion
In conclusion, El Corte Inglés has made considerable efforts to stamp its name as one of the leading retail department stores globally. Despite efforts to improve operational efficiency and profitability, the company should emphasize employee development to improve customer satisfaction. The company should also consider venturing into more foreign markets to help it increase market share and realize the dream of becoming a retail industry leader.
References
El Corte Inglés. (n.d.). Commitments to the client. Web.
Nordström, M. (2022). Conceptual design of the sustainability balanced scorecard-A synthesis of the literature. Web.