Toyota Corp. Analysis & Balanced Scorecard
Toyota Corp. Analysis & Balanced Scorecard
BBUS 4251
Instructor: Dr. Rishma Vedd
Name: Tsung-Lin Yeh
Student # T00022252
Contents
Contents page …………………………………………….. 1
Summary of Balanced Scorecard ………………………… 2
Executive Summary …………………………………………….. 3
Corporate Strategy………………………………………… 3
Critical Success Factors …………………………………… 4
Competitive Advantage ……………………………………….. 4
Balanced Scorecard ……………………………………………. 5
Recommendation ………………………………………………. 7
Conclusion ……………………………………………….. 7
References ……………………………………………….. 8
Summary of Balanced Scorecard
Definition:
Balanced Scorecard (BSC) is a strategic performance tool, which is used by managers to monitor consequences and keep track of the execution of activities. According to Kaplan and Norton “balanced scorecard was designed as a strategic tool and used mainly by the executive of an organization, and might not be relate to the employees at operational levels” (2001). In addition, it gives people “a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals” (Vedd, 2011). BSC is measured by both leading and lagging measurements to either look forward or backward to company’s performance. The full assessment of BSC is done through a series of goals/objectives, mapping/measurements, as well as targets and initiatives.
Strategic Objectives:
The first measure is the finance, in which by justifying the revenue, the company can learn to improve its profits. The next layer down is related to customer satisfaction in which excellent service, company image, fair price, and high quality can result in good financial results. By exploring the wants and needs of the customer, a company can focus on exactly what is needed to accomplish that goal. The third measure is internal process. This step is similar to value engineering, because a company must decide what values (e.g. good customer and product services) to be added with
BBUS 4251
Instructor: Dr. Rishma Vedd
Name: Tsung-Lin Yeh
Student # T00022252
Contents
Contents page …………………………………………….. 1
Summary of Balanced Scorecard ………………………… 2
Executive Summary …………………………………………….. 3
Corporate Strategy………………………………………… 3
Critical Success Factors …………………………………… 4
Competitive Advantage ……………………………………….. 4
Balanced Scorecard ……………………………………………. 5
Recommendation ………………………………………………. 7
Conclusion ……………………………………………….. 7
References ……………………………………………….. 8
Summary of Balanced Scorecard
Definition:
Balanced Scorecard (BSC) is a strategic performance tool, which is used by managers to monitor consequences and keep track of the execution of activities. According to Kaplan and Norton “balanced scorecard was designed as a strategic tool and used mainly by the executive of an organization, and might not be relate to the employees at operational levels” (2001). In addition, it gives people “a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals” (Vedd, 2011). BSC is measured by both leading and lagging measurements to either look forward or backward to company’s performance. The full assessment of BSC is done through a series of goals/objectives, mapping/measurements, as well as targets and initiatives.
Strategic Objectives:
The first measure is the finance, in which by justifying the revenue, the company can learn to improve its profits. The next layer down is related to customer satisfaction in which excellent service, company image, fair price, and high quality can result in good financial results. By exploring the wants and needs of the customer, a company can focus on exactly what is needed to accomplish that goal. The third measure is internal process. This step is similar to value engineering, because a company must decide what values (e.g. good customer and product services) to be added with
References: Annual Report (2009). Toyota Motor Corporation Gallagher, S Hines, P. (1998), “Benchmarking Toyota’s supply chain: Japan vs UK”, Long Range Planning, Vol Kaplan, R.S. and Norton, D.P. (2001b), The Strategy-focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment, Harvard Business School Kurogane, K. (Ed.) (1993), Cross-functional Management: Principles and Practical Applications, Asian Productivity Organization, Tokyo. Monden, Y. (1998), Toyota Production System: An Integrated Approach to Just-in-Time, 3rd ed., Engineering and Management Press, Norcross, GA. Nobeoka, Kentaro, Jeffrey H. Dyer and Anoop Madhok, (2002). “The Influence of Customer Scope on Supplier Learning and Performance in the Japanese Automobile Industry.” Journal of International Toyota (1999), Ensuring the Achievement of the Second Action Plan (FY2000) and Taking Actions for the 21st Century, company document, Toyota Environment Management, Vedd, R. (2011).BBUS 4251: Class Notes. Thompson Rivers University Witcher, B.J., Chau, V.S