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14202198_BSE

1. Opportunities and Challenges in Early 2007 and the new strategy to overcome the
challenges and benefit from the opportunities.
Ans: Opportunities
 Financial performance increased which will help in volume and quality
improvement.
 Introduction of balanced scorecard will improve employee relations and also in

negotiation.
Challenges
Constant threat of shutting down the non-profit operations by head office in

German.
Difficulty in negotiation with the local workers union of restructuring the contract
because of which the workers were instable. This made the company conservative
and bureaucratic.

New Strategy
Administrative offices in manufacturing unit can help in setting targets and planning

with the employees and by implementing them and to know their results.
New culture which helped in improving performance in finance and planning as
well as volumes and quantity of the productions. This will also help in problem
solving for employees as well as improving safety and health problems by reducing

such incidents.
Re-education was provided to the management team so that it will help in
innovation of new products also in market enlarging.

2. Use of Strategy Map and Balanced Scorecard to Communicate Measurable Objectives and
Determine key Managerial Tasks.
Ans: Objective of using strategy map and balanced scorecard: is to show cause and effects how
to convert intangible assets into tangible assets will give financial results. Monitoring of results are

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Key Managerial tasks by using strategy map are:  Compensation and Recognition: VWB use result sharing payment as to measure individual’s performance which help to know efficiency and goals achieved by them. They also established Management Development Review so that to know employees who need  management training or who are performing high. the company conducted events for dealers as well as suppliers. and Providing Feedback. Evaluating Results. Engaging suppliers and dealers: To improve quality.14202198_BSE also takes place by decoding of high-level objectives into operational terms by translating strategy into language which all the employees understand. timely delivery of parts and also innovative technologies development. Ans: Provisions for reward system reinforcing desired behaviour resulted into many improvement for the company: 2 | Page . This will provide them recognition as reward and will have long-term relation with the company. The employee gets recognition as it will act as non-financial rewards to motivate them. 3. Putting in place Provision for a Reward System Reinforcing Desired Behaviour. Accessing Gaps.

e.e. So that training can be  provided for them and recognition to high performers. This will increase productivity level and also many innovative technologies to be  invented can be done in future. The scorecard also gives idea about competitors price and quality so that can be further considered and then to know reliable suppliers or dealers. absenteeism  will decrease also safety measures for them. 3 | Page . How can Schmall and his team use the scorecard to deal with the challenges faced by the company in 2009? Ans: The use of scorecards are:  The Company by using scorecard helped them to know who all high performers and low performers both for external customer i.14202198_BSE  Introduction of Executive bonus plan which help to know the percentage of the  employee’s work and task completed by them. suppliers and dealers and internal customer i. 4. This idea will help to improve efficiency. Result sharing program used to target purpose in company strategy between trade  union and its employees. work force in the company. quality. timeliness in delivery. Flexibility in response to market fluctuations came up by BSC which also helps in continuous improvement as well as knowing where there is need for improvement. employees.

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