Introduction to Management Accounting & Finance
The Royal Zoological Society of Hotland runs Eden Zoo and has been operating for more than 100 years.
Their mission statement is: ‘To promote, facilitate and encourage the study of zoology and to foster and develop amongst people an interest in and knowledge of animal life.’
Their vision statement is: ‘To be a global leader in wildlife conservation, research, and education.’
Located towards the edge of the city, the Zoo is visited regularly throughout the year by many local families and is an internationally, well-known tourist attraction. A number of scientists also work at the Zoo and every year they answer a significant number of inquiries from veterinarians and scientists from all over the world. Although the Zoo is one of the top 10 visitor attractions in the country, admissions, and revenues have been steadily falling over the past few years. This declining performance led to the previous finance director, who had a strong focus on key financial indicators, resigning their position.
The Zoo’s new finance director has decided that in order to strengthen their finances, they have suggested that the board should meet with bank representatives in order to negotiate a loan. In order to receive a loan, the bank requires a balanced scorecard as part of the Zoo’s strategy. As many members of the board, which consist of eminent scientists, are unfamiliar with the concept of the balanced scorecard the finance director has asked you to prepare the report.
For the benefit of the board, review the relevant academic literature, and prepare a report which provides the following:
- An executive summary, which should include a brief outline of the organization and its plans.
- The difference between financial and non-financial indicators.
- The process of developing a Balanced Scorecard.
- Create a Balanced Scorecard for the Zoo which should include indicative performance measures, targets, and initiatives for each section.
- Critically discuss the potential advantages and disadvantages of adopting a Balanced Scorecard approach.