Great Ebay Debate

Introduction

The object of this paper is to create a balanced scorecard for eBay based on the optimal approach for running an Internet-based auction business. Cases for both sides on whether eBay has met the metric goals as detailed in the balanced scorecard will be discusses along with a discussion on which argument was more compelling and the reasons why.

Company Overview

EBay was founded in 1995. The goal of the company is to connect customers to each other and provide a platform where users can trade goods and merchandise. According to the companyЎ¦s website (2006), Ў§On an average day, there are millions of items listed on eBay. People come to eBay to buy and sell items in thousands of categories from collectibles like trading cards, antiques, dolls, and house wares to practical items like used cars, clothing, books and CDs, and electronics. Buyers have the option to purchase items in an auction-style format or items can be purchased at a fixed price through a feature called Buy It Now. People from all over the world buy and sell on eBay. Currently, eBay has local sites that serve Australia, Austria, Belgium, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Malaysia, the Netherlands, New Zealand, Poland, the Philippines, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, the United Kingdom, and the United States. In addition, eBay has a presence in Latin America through its investment MercadoLibre.com.ЎЁ

Balanced Scorecard

According to Wikipedia (2006), the balanced scorecard is describes as Ў§a method for measuring a company's activities in terms of its vision and strategies. It gives managers a comprehensive view of the performance of a business. It is a strategic management system that forces managers to focus on the important performance metrics that drive success. It balances a financial perspective with customer, internal process, and learning & growth perspectives. The system consists of four processes: 1. Translating the vision into operational goals; 2. Communicate the vision and link it to individual performance; 3. Business planning; 4. Feedback and learning and adjusting the strategy accordingly.ЎЁ

Companies seek to measure the following perspectives:

„X Financial Perspective ЎV This perspective measures the companyЎ¦s financial performance such as return on investment or the companyЎ¦s cash flow.

„X Customer Perspective ЎV Measures the customer impacts.

„X Business Process Perspective ЎV Measures important business processes.

„X Learning and Growth Perspective ЎV Measures that deal with the company learning curve.

Balanced Score Card

The Customer Perspective

- Deliver services consistent in value and quality

- Increase public awareness and visibility

- Engage and expand community support

The Business Process Perspective

- Improve business processes and efficiencies

- Make investments infrastructure

- Acquire additional businesses

The Learning and Growth Perspective

- Recruit and retain a highly skilled workforce

- Increase employee satisfaction

The Financial Perspective

- Increase market share over prior year

- Increase net revenues

- Increase operating cash flow over prior year

Pro Argument

EBay has created, maintained, and expanded the safety and reliability of their site. The site was developed to make it easy for sellers and buyers to trade merchandise. The website has various services available free or at a small fee. There are also software tools to help automate the process of selling merchandise such as sellerЎ¦s assistant, selling manager and selling manager pro and turbo lister. EBay also purchased PayPal.com, which is a global platform that allows buyers to purchase merchandise using a variety of methods in over 55 countries or regions. PayPal offers users a sense of safety, user verification, assurance programs, buyer protection