A causal chain is a collection of inter associated actions defining the foundation cause of an issue and its effects (McKay 1994, pp. ). Causal chains are usually related to the strategic objectives and objectives of a business. Causal chains reveal how a constructive activity can subsequently trigger a optimistic impact corresponding to higher financial revenues. As such, causal chains are half and parcel of the BSC (Bukh & Teemu, 2005).
In the case of Walt Disney Company, two causal chains are highlighted. In the first causal chain, advertising and product innovation seeks to maximise revenues. In the second causal chain, price minimization aims at reducing operational costs thereby expanding profit ranges. In order to understand its strategic goal, Walt Disney Company has identified numerous goals; aggressive advertising, new product innovation, and minimizing operational prices .
Now, we are able to blend the 2 frameworks to set a realistic objective that fulfills your clients’ wants and helps you hit your numbers at the same time. In the advertising industry, setting goals can be a double-edged sword. On the one hand, continuously raising the bar can incentivize your group to sustain your growth rate over lengthy periods. On the other hand, it can incentivize your team to prioritize your organization’s wants over your customers’ wants.
Following our thesis that the balanced score card is a useful gizmo applicable to most organizations for identifying strategic action plans, a variety of recommendations may be produced from the above analysis. Using the BSC, Walt Disney Company ought to base its objectives on actions that flow harmoniously with one another (Gareth & George, 2011; Drummond & Stone, 2007, pp. ). In this case, value minimization is ambiguous and will suggest lowering general spending, in turn curtailing many different processes. To additional increase monetary earnings, the business ought to invest in rising markets (Gareth & George, 2011). Expanding earnings shouldn’t just revolve around cost minimization. Instead, Walt Disney Company ought to undertake cost efficient strategies. The business ought to improve its investments and cut back the dangers of losses of revenue through poor funding plans.