Kia Motors Case Study

performance which in turn will ensure competitive advantage for their organization. It can be used to determine things like the mission, vision, goal, values, mission, timeline objectives, roles and responsibilities.

To evaluate the Performance in any organization would simply mean to understand the goals and objectives of the company and how the goals/ objectives are achieved are the means of measurement. Different organization will have different objectives. For some it would mean high revenue, managing resources, customer satisfaction, and strong governance, building

Financial performance measures, such as operating income and return on investment, indicate whether the company’s strategy

Measuring performance means when a business will measure the quality of the activities that are passing and the quality of the services provided to the customers by employees. It involves creating a simple, but effective, system for determining whether organizations meet objectives. It’s also a process of collecting and reporting information regarding the performance of an individual, group or organizations. It can

The objective will be to evaluate the company’s operational strengths and weaknesses based on the following:

Which of the following is a performance measurement tool that looks at four areas that can help a company succeed?

* Although your team might have high customer satisfaction or a high stock price, your performance in regards to the overall competition is determined via a multi-dimensional scorecard that takes the following criteria into account:

To answer this question, first of all, we have to know the organization’s business objectives and then based on that, I will try to define how they are measuring their performance and to which extend they are achieving the business objectives.

There are many ways to analyze the performance of a company, some more popular than others. According to the Barney text the accounting method is the most popular way of measuring a firm's performance (Barney, 2002). Some of the reasons for the popularity could include the fact that accounting measures of performance are publicly available on many firms and they communicate a great deal of information about a firm's operations. Other methods of performance analysis include firm survival and the multiple stakeholder approach.

Toyota Motor Manufacturing, U.S.A. (TMM) is deviating from the standard assembly line principle of jidoka in an attempt to avoid expenses incurred from stopping the production line for seat quality defects. This deviation has contributed to the inability to identify the root cause of the problem, which has led to decreased run ratios on the line and an excess of defective automobiles in the overflow lot for multiple days. If this problem isn’t fixed quickly, an increased amount of waste will continue to be incurred and customer value will be threatened.

Management accounting researchers (Otley, 1999; Norreklit, 2000) have criticized depending exclusively on financial measures. As referred by Cumby and Conrod (2001), sustainable shareholder value and competitiveness advantages are actually driven by non-financial factors such as employee satisfaction, customer loyalty, internal processes and innovation. As a result, companies started to include non-financial measurements within their PAMs to gain better knowledge about the overall company situation (Ittner and Larcker, 2001; Speckbacher et al, 2003).

KIA, which means “arise from Asia” in Korean, started out making bicycles prior to World War II (Kia Motors Corporation, 2008). The company developed the manufacturing of steel bicycle tubing into a multi-national corporation producing cars and trucks. Prior to merging with Hyundai in 1998, Kia was the second largest producer of vehicles in South Korea (Kia Motors Corporation – Company Profile, Information, Business Description, History, Background Information on Kia Motors Corporation, 2008). Examining Kia’s transformation in a country lifting itself out of the

Carroll, A.B., 1979. A Three Dimensional Conceptual Model of Corporate Performance. Academy of Management Review. Vol. 4, no.4, pp.497-505.

BMW (U.S) Holding Corporation is a franchise of the high-end performance based global automotive company BMW. For the first time in its history, BMW is to launch its first American made car, the BMW Z3 Roadster. Having only made cars in Germany, this time the car is to be assembled in Spartanburg, South Carolina. BMW’s objective is to expand its market share in the U.S., make the brand name more global and improve its dealer network. With this in mind, the company developed a two phases launch plan for the BMW Z3 Roadster.

Organization is a part of an economic system in a country. In order to retain in economic system of the country performance is one of the most important fact for an organization. Organizational performance is actual output an organization is gained against its intended outputs. There are number of facts which impact on performance of an organization. Basically, it depends on people, process, place, procedures of the organization.