Assessing Financial Performance
Identify the financial records that indicate a commitment to Triple Bottom Line (TBL). Outline which financial and other records marketing and sales maintain where TBL can provide data.
People
ABC has experienced an increase in memberships from consumers in minority communities and in the donations it makes generated by community sales. The Marketing department and Sales department each maintain crucial pieces of data related to membership and donations. The Sales department tracks loyalty memberships, and the Marketing department facilitates directing community donations. These targeted donations have increased goodwill toward ABC, which is shown as an Intangible Asset on the balance sheet.
Planet
ABC’s strong commitment to the planet is shown by the value of purchases of carbon offsets. Carbon offsets are shown on the balance sheet, although there is not an agreed-upon method of accounting for them (Haller, T., & Holdren, G., n.d.). At ABC, carbon offsets are included in the Financial Assets section of the balance sheet. The Marketing department monitors the environmental impact of the offsets and uses that information in marketing campaigns.
Profit
ABC’s net cash flow shows the effect of both the reduction in packaging costs and the increased use of recycled components to make our packaging. Both initiatives support ABC’s commitment to “promote and use a platform of reuse, recycling, and sustainable energy use” (ABC, “KPI and Triple Bottom Line”).
Using the TBL scorecard, evaluate the alignment of the strategic plan with KPIs. Your focus should be to apply your understanding of the scenario and evaluate the plan accordingly. Which ideas in the plan support the KPI criteria? Cite specific ideas that meet the criteria. Explain how they meet the criteria.
People
If ABC realizes an increase in membership accounts of consumers who self-identify as a member of one or more minority groups, does this make us a “global contributor to the communities we operate in” (ABC, “KPI and Triple Bottom Line”)? By collecting additional data on the membership application, ABC is able to gain a better understanding the new customers. This understanding allows community donations to be targeted towards projects which are most important to each specific community.
Another way that ABC is a “global contributor to the communities we operate in” (ABC, “KPI and Triple Bottom Line”) is through the purchase of upfront carbon offsets. These purchases not only help the planet, as described below, but they help the communities in which the projects are built.
Planet
ABC’s purchase of upfront carbon offsets helps the company meet our strategic plan of “reach a global audience with healthy and sustainable products” (ABC, “KPI and Triple Bottom Line”). The upfront carbon offsets purchased by ABC are used to fund environmentally friendly construction projects. This means that buildings are designed to have their own source of sustainable power rather than utilizing nonrenewable sources. The Marketing department created fantastic promotional campaigns centering on the number of hours of energy the projects we have funded have generated in an eco-friendly manner. Sometimes it is difficult for the consumer to understand the value of ABC’s purchase of upfront carbon offsets. To ameliorate the confusion, the Marketing department uses data from a trusted resource, the US Environmental Protection Agency, to describe the impact of this investment in terms the average consumer understands, such as a reduction in miles driven, how many tanker trucks of gasoline will not be used, how many trees will be grown from seedlings.
Profit
By increasing the availability of refillable products, ABC is promoting and using “a platform of reuse, recycling, and sustainable energy use” (ABC, “KPI and Triple Bottom Line”). The Sales department demonstrated how easy it is to use the refillable products by bringing samples to regularly scheduled meetings of ABC’s loyalty rewards members. The Marketing department created several promotions related to the newly refillable products. These campaigns demonstrated ABC’s dedication to the Vision of “producing and supporting products and initiatives that sustain the health of our people and the planet” (ABC, Vision).
Describe how the TBL data relates to the KPIs. Identify which additional TBL financial line items are needed to measure the cost for each criterion.
People
The Marketing department collaborated with several other departments to update ABC’s loyalty memberships applications in order to acquire additional data from members. New members may voluntarily provide their ethnic background, birthdates, and household demographics. This data allows ABC to monitor its progress on the KPI of increasing membership of consumers who have self-identified as a member of one or more minority groups. The financials for this KPI are not easily distinguishable from the marketing costs. The marketing costs include hiring personnel in new geographic areas leading to an increase in the salary and pension costs shown on the income statement.
Planet
Monitoring both the cost of carbon offsets purchased in a given time frame as well as ABC’s gross sales during that same time period enables ABC to calculate if the carbon offsets it bought are equivalent to one percent of sales in that time frame. The seller of the upfront carbon offsets uses the capital invested by ABC to support new construction projects being built in an environmentally friendly manner. That is, ABC’s funding enables the new structures to be built in a manner that will not contribute to additional greenhouse gas pollution (Native, 2021). The offsets are shown as inventory on the financial statements; gross sales are shown as revenue on the Consolidated Income Statement.
Profit
ABC incurred significant expenses from the purchase and installation of the new equipment that is capable of creating our packaging from recycled materials. ABC also had to upgrade the existing packaging equipment to ensure the recycled materials ran through the packaging machine without issue. The United States Federal Government does not currently offer any tax credit for utilization of recycled material. Fortunately, ABC’s factory is located in a state which provides a tax credit of up to 25% of the cost of the machines. These savings are shown as a reduction in current tax liabilities on the balance sheet.
Referring back to the SWOT analyses from Project One, explain how functional considerations of individual departments contribute to financial performance.
It is important that individual departments consider the overall vision and strategy of ABC when setting their individual strategies. If departments take a myopic or siloed view, they may expend financial and staff resources to meet departmental goals that may not be the best use of resources for the company as a whole.
For example, the Information Technology department is currently asserting that one of its strengths is a recent upgrade of digital security to safeguard our customers’ data. However, the Marketing department lists an Information Technology responsibility as a weakness, decrying the “slow development of digital content creation/posting” (ABC, “SWOT Analyses”). Better coordination between departments could prevent these kinds of discrepancies. One way to have consistent priorities is to create a priority matrix for the use of resources, including Information Technology expertise. This will ensure the best financial performance for ABC by focusing on projects which will have the greatest impact.
References
ABC. (2021). KPI and Triple Bottom Line Balanced Scorecard (Marketing and Sales). [Fact sheet].
ABC. (2021). Sales and Marketing Proposal to Increase Rewards Memberships in Low-Income Markets. (Marketing and Sales). [Fact sheet].
ABC. (2021). SWOT Analyses From Sales and Marketing. [Fact sheet]. ABC. (2021). Triple Bottom Line Plan. [Fact sheet].
Haller, T., & Holdren, G. (n.d.). Financial Accounting for Forestry Carbon Offsets. Retrieved April 02, 2021, from https://www.ecosystemmarketplace.com/wp-
content/uploads/archive/documents/Doc_65.pdf.
Measure the impact of your energy use on the environment. (2019, June 13). Retrieved April 01, 2021, from https://www.epa.gov/energy/measure-impact-your-energy-use-environment.
NativeEnergy – Carbon Offset Providers: Programs & Projects for Emission Reduction. Native. (2021, January 13). https://native.eco/.
ORDER A PLAGIARISM-FREE PAPER HERE
We’ll write everything from scratch
Question 
Competency
In this project, you will demonstrate your mastery of the following competency:
Assessing Financial Performance
- Assess the current performance of an organization through analysis of financial statements.
Scenario
In Project One: Applying Strategic and Operational Thinking, you prepared Key Performance Indicators (KPIs) for the marketing and sales departments of your product line.
Now, the CEO has provided you with a revised set of KPIs. You need to apply these KPIs toward the analysis of a proposed marketing and sales initiative to increase loyalty card memberships in neighborhoods with predominantly low-income populations, whether the populations are in rural, suburban, or city locations.
The CEO wants this analysis so that she can chart the sustainability and growth of the initiative while assuring it meets standards for Corporate Social Responsibility.
The CEO has provided you with several documents, available in the Supporting Materials section of this project. She wants you to use the provided Triple Bottom Line Balanced Scorecard to assess the strategic plan’s compliance with the KPIs and summarize your findings in a memo.
Directions
Complete the following to provide the analysis required by the CEO:
- Identify the financial records that indicate a commitment to TBL.
- Outline which financial and other records marketing and sales maintain where TBL can provide data.
- Using the TBL scorecard, evaluate the alignment of the strategic plan with KPIs. Remember, there may be multiple outcomes of this exercise. Your focus should be to apply your understanding of the scenario and evaluate the plan accordingly.
- Which ideas in the plan support the KPI criteria? Cite specific ideas that meet the criteria.
- Explain how they meet the criteria.
- In your memo:
- Describe how the TBL data relates to the KPIs.
- Identify which additional TBL financial line items are needed to measure the cost for each criterion.
For example, should there be a line entry for hiring temporary workers? - Referring back to the SWOT analyses from Project One, explain how functional considerations of individual departments contribute to financial performance.
What to Submit
To complete this project, you must submit the following:
KPI and Triple Bottom Line Balanced Scorecard
- Complete and submit the KPI and Triple Bottom Line Balanced Scorecard. In the scorecard spreadsheet, identify one additional KPI, a related SMART objective, and its measurement criterion. You need to do this for all three elements of TBL: people, planet, and profit. You have been provided with one example for each TBL element.
Analysis Memo
- In a Word document, write a memo outlining your analysis. Ensure that the memo is organized by TBL element with a header for each segment of your analysis. The Word document should use double-spacing, 12-point Times New Roman font, and one-inch margins. This memo should be no more than 6 pages in length and include references cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.
Supporting Materials
The following resource(s) may help support your work on the project:
The following resources support your work on the project:
Document: Consolidated Balance Sheet
This is a consolidated balance sheet for the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: Consolidated Cash Flow Statement
This is a consolidated cash flow statement for the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: Consolidated Income Statement
This document is a consolidated income statement and a consolidated statement of comprehensive income of the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: KPI and Triple Bottom Line Balanced Scorecard
This is the final and authoritative draft of the KPI Scorecard the CEO wants you to use. This scorecard provides three KPIs: one for a social measure (people), one for an environmental measure (planet), and one for an economic measure (profits). You need to identify three more KPIs and associated information.
Document: Marketing and Sales Executive Summary
This is a proposal from the sales and marketing departments to increase reward memberships in low-income markets. This summary includes a high-level estimate of projected sales, costs, and profits.
Document: SWOT Analyses from Sales and Marketing
This document contains a combined SWOT analysis of the two departments.
Complete the 
Complete the order payment after filling in the order form. We’ll receive your order and assign it to a writer.
The assigned writer will complete your paper and forward it to our Editing Team for review and approval.
Once approved by the editor, the completed paper will be uploaded to your account for you to download, review and approve.