Question

Case Study in Balance Scorecard

Ajinomoto is a food processing company listed in Bursa Malaysia. Ajinomoto (Malaysia) Berhad started its business operations in 1961 as AJI-NO-MOTO® Monosodium Glutamate (MSG) producer. It is one of the very first Japanese companies to be set up in Malaysia. Ajinomoto (Malaysia) Berhad has since grown into a dynamic food and seasoning manufacturer marketing diverse brand name that is trusted by Malaysian for decades.

The company is committed to protect and improved the environment in all areas of the company’s operations. We also dedicated to provide a safe and healthy workplace environment to all employees and those related to our operation activities.

Due to the company’s commitment on environment and financial performance, the company decides to implement Balance Scorecard to measure both financial and non financial measurement for the year 2021.

You are required to prepare a report to the Board of Directors covering the following;

Introduction of Balance Scorecard to the board of directors.

       

You are required to link the company’s long term budget to Balance Scorecard using the information as provided in the latest financial statement in Bursa Malaysia.

       

The link must cover the following;

.

Research into new products

(ii) Existing and future markets for current and new products.

(iii) Production processes for new products.

(iv) Resources for production such as raw materials, labour, automation       

       machineries using artificial intelligence.

Logistic resources required.

     (vi) Any other existing changes can be made to improve the company’s profit and    

           services to the local community

                               

Answer 1

Here is my Answer for the above question

TO the Board of Directors,

Introduction about balanced scorecard

1. A balanced scorecard is a performance metric used to identify, improve, and control a business's various functions and resulting outcomes.

2. It was first introduced in 1992 by David Norton and Robert Kaplan, who took previous metric performance measures and adapted them to include non financial information.

3. The balanced scorecard involves measuring four main aspects of a business: learning and growth, business processes, customers, and finance.

4. The balanced scorecard is used to attain objectives, measurements, initiatives, and goals that result from these four primary functions of a business. Companies can easily identify factors hindering business performance and outline strategic changes tracked by future scorecards.

Characteristics of the Balanced Scorecard Model

Information is collected and analyzed from four aspects of a business:

1. Learning and growth are analyzed through the investigation of training and knowledge resources. This first leg handles how well information is captured and how effectively employees use the information to convert it to a competitive advantage over the industry.

2. Business processes are evaluated by investigating how well products are manufactured. Operational management is analyzed to track any gaps, delays, bottlenecks, shortages, or waste.

3. Customer perspectives are collected to gauge customer satisfaction with quality, price, and availability of products or services. Customers provide feedback about their satisfaction with current products.

4. Financial data, such as sales, expenditures, and income are used to understand financial performance. These financial metrics may include dollar amounts, financial ratios, budget variances, or income targets.

You are required to link the company’s long term budget to Balance Scorecard using the information as provided in the latest financial statement in Bursa Malaysia.

	objectives	Goals	indicators	initiatives
Financial perspective	To increase the profitability	Increase the profitability of the company by15%	Financial statements	New products introduction markets,heavy market penetration
customer perspective	Increase the services to local community	Increase the average no of customer visits daily by 20%	Count of Customers	Variety of products with improved service environments provided
Internal process perspective	Increase the operational efficiency	Increase efficiency to 100%	Production capacity increase	Provide safe and healthy work place environment to all employees
Learning and growth perspective	Improving market of Brands with new products and logistics also improved	Introduction of more than 50% of new products and introduction of new logistics for transport	No of new products in the market and no of new vehicles introduced	production process for new products and logistic resources provided