Develop a Balanced Scorecard (BSC) for TeleHyper Berhad showing clearly the objective as well as the TWO (2) lag and lead indicators for each of the four BSC perspectives.
TeleHyper Berhad is a multinational mobile phone manufacturer that has
several autonomous subsidiaries throughout Asia.Two of the subsidiaries are
located in Thailand and Malaysia. The subsidiary in Thailand manufacturers
VC component that is primarily used by the manufacturers of mobile phones.
The subsidiary is currently supplying its whole production to their local market.
The Malaysian subsidiary assembles various models of mbile phones. It uses
the same Vc component as one of the main materials in its production.
Thailand Subsidiary
For this year, the subsidiary in Thailand produces 600,000 untis of VC
component to fulfill its customers’ demand. It’s currently operating at 75%
capacity. The management team of the subsidiary estimates the demand for
VC component will increae by 10% next year and they are preparing for the
increasing demand. The selling price of the component is RM140 per unit and
the variable cost is RM80. Even though there is a rumour saying that the price
of the materials used for producing the component will rise next year, the
management has yet to decide on the matter until the increased is realized.
Malaysia Subsidiary
The Malaysian subsidiary buys the VC component fro a local supplier. The
market price of the VC component is RM140 per unit. Based on the current
year performance, the subsidiary has estimated that 300,000 units of VC
component will be needed for the next year’s operation.
TeleHyper Berhad
The managing director of the group has reviewed the performance of the
whole company and has concluded that good rapport among the subsidiaries
in the group will improce the profitality of the company as whole. The company
is committed to work with its customers in delivering products and services
that meet their needs and the company should be able to design the right
accessories in time for the launch of new product in thefuture. Therefore,
TeleHyper Berhad’s top management team is considering to design a
scorecard to better manage its completing priorities. The following objectives
have been deliberated and need to be reworked to suit thedesign of a balance
scorecard:
To achieve 10% increase in sales revenue and 20% market share.
To achieve a return on investment of 15%.
Designing an innovative accessories components to suit the latest
models of product and to be launched as soon as new product is
released.
Flexible manufacturing proceses and employee skills to produce the
right product. Employees need to send for training.
Required:
Develop a Balanced Scorecard (BSC) for TeleHyper Berhad showing clearly
the objective as well as the TWO (2) lag and lead indicators for each of the
four BSC perspectives.
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