1 Week Balanced Scorecard Case Analysis

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The Balanced Scorecard Case Analysis
VWB – Thomas Schmall
Kari L. Smith
October 31, 2014
Bay Path University
BUS491 – Strategic Management - Professor Jaime Litchfield

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Balanced Scorecard Case Analysis
Introduction
When Thomas Schmall became CEO of Volkswagen do Brazil (VWB) in 2007, the company was facing major market share declines and financial losses (Kaplan, R 2011). Because of the intense competition in the global market, VWB could not raise prices on products shipped
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It was comprehensive and clear. The strategy map, with its four dimensions, clearly defines the cause and effect relations and how the intangible assets (employees) can get converted into tangible financial results. Each dimensions objectives had defined metrics associated with them to illustrate what is necessary to overcome the challenge. The Balanced Scorecard was the perfect tool to measure, monitor and define these outcomes. Along with the Balanced Scorecard was a matrix that listed each objective and with a set of actions that was assigned to the appropriate business unit that was responsible for monitoring and achieving their targets. This helped with implementation because there wasn’t any question as to who the champion would be assigned to a particular objective. It allowed ownership, and with the CEO leading this transformation program and being supported by top management, it helped with buy-in from the employees.
What are the strengths and weaknesses of the scorecard and its implementation?
There is no doubt that a Balanced Scorecard is a great management tool to restructure a company’s culture and formulate an aggressive strategy. Yet, it has its weaknesses. Implementation into an existing operation is very time consuming and involves a lot of man-hours to formulate a plan so everyone understands how the tool works. Initially, when the Schmall presented “Act to Win”, to the executives, that had to go through a two

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