Christine Lam
BA 453 – Case Briefing: Transworld Auto Parts
November 11, 2012
Company Overview: Transworld Auto Parts (TAP) is a Tier 1 manufacturer of original and after-market parts for automobile producers both in the United States and abroad. TAP focuses on manufacturing in two core product lines: electronics and interiors. Apart from that, it also separates its customer-centered divisions into four divisions: luxury, economy, mid-priced, and truck. TAP also serves in three main geographic markets including North America, Europe, and Asia.
Problem Definition: Which of the two balanced scorecard approaches better illustrates how Transworld Auto Parts can improve their ROCE by 8% given the current economic downturn?
Situational …show more content…

Lastly, the learning and growth perspective only included one objective: increase employee engagement.
On the other hand, Kwon, president of the economy division took a more complex and descriptive approach with the balanced score card. He went into detail about each of the four perspectives and proposed very specific, action-oriented goals. He had similar financial perspective objectives, but each of the other perspectives contained about four or five different objectives. For example, the learning and growth perspective contained six objectives: train buyers on low cost procurement, enhance electronic interchanges with customers and suppliers, transform workforce into JIT/lean experts, make JIT/lean a priority for all workers, alight IT to support TQM and JIT, and enhance workforce capabilities in TQM.
Both approaches of the balanced score card aim to attain similar overall goals. Below are some pros and cons for each approach:
Luxury Division-
Pros: focusing goals in broad chunks make it easier to attain, with attainable goals employees are happier, creating healthier company morale
Cons: too simple without specifically stating what actions must be taken in order to meet objectives, might cause confusion among employees

Economy Division- Pros: very detailed with specific measures and actions on how to achieve objectives
Cons: may seem