For exclusive use University of Technology Sydney, 2015

9-110-027
REV: AUGUST 8, 2011

V. G. NARAYANAN
LISA BREM

Tra answorrld Auto Partss (A)1
It was an unussually cool an nd foggy mo orning in the summer of 22009, but Ellen Bright, CE
EO of
Transsworld Auto Parts (TAP), was too preo occupied to n notice the weeather. She w was focused o on the two balanced b scorecards beforee her. One, frrom the luxurry division, sshowed stron ng financial reesults; whilee the other, from the econo omy division,, reported dissappointing ffinancial perfformance but good progrress in achiev ving the targeets for its no on-financial g goals. She wo ould soon bee meeting witth the headss of each diviision and wo ondered whatt feedback sh he should giv
ve …show more content…

TAP served three geographic markets: North America, Europe, and Asia. The four customer divisions each had very different customers and customer value propositions. Bright looked over the marketing reports that Mary Stewart, her vice president of marketing and sales, had put on her desk that morning (see
Exhibits 2 and 3). These reports reinforced her view that future success would depend on how well she positioned TAP to compete aggressively in its most profitable segments.
Attending the meeting were Aaron Eckhard, the president of the luxury division; Kim Kwon, the president of the economy division; the chief financial officer; and the vice presidents of marketing, manufacturing, and research and development. After presenting a report that showed the product level financials (Exhibit 4), the global market production figures (see Exhibit 5), and the market segment reports, Bright summarized her position:
If you look at our data and the reports coming out of the industry analysts at a macro level, you can see that the best course of action for us would be to go after the segments that give us the potential for the most profit. Those segments are the luxury car makers (mostly serviced from plants in Europe) and the economy car makers. Now, I realize that plants in both the U.S. and Asia serve a high proportion of economy car makers, but I feel strongly that TAP should focus its resources