valuation.
Beyond company and division level results, MeritBSC refines profit, growth and ROE metrics by analyzing product/service, customer/segment, delivery channel and geographic market level performance.
By pushing performance metrics to the most refined operating unit level, better management decisions can be made about how to invest and use resources (i.e., capital, technology, people, advertising) leading to success via improved performance.
The reason for pushing performance analysis to the most refined operating unit level is that it is closest to the individual customer. Better business decisions get made when they are based on customers
The profit, growth, ROE analysis is intensive because it should be simultaneously evaluated at all levels for good decisions.
MeritBSC focuses on profit, growth and ROE metrics because they are the quantitative measures that reflect competitive advantage, and because they are, and directly link to, the drivers of market valuation.
ROE is used because it includes balance sheet, income statement and cash flow factors at the same time.