Balance scorecard of Toyota PDF

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ASSIGNMENTONBALANCE SCORECARDOF TOYOTASUBMITTED TO: SUBMITTED BY:Katrina Daaca Charanjeetpal Singh ChahalStudent Id - 00000166692Balance scorecard of Toyota: A balanced scorecard is a strategic management performancemetric used to identify and improve various internal business functions and their re...

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ASSIGNMENT ON BALANCE SCORECARD OF TOYOTA

SUBMITTED TO:

SUBMITTED BY:

Katrina Daaca

Charanjeetpal Singh Chahal Student Id - 00000166692

Balance scorecard of Toyota: A balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. Balanced scorecards are used to measure and provide feedback to organizations. The balanced scorecard is used to attain objectives, measurements, initiatives, and goals that result from these four primary functions of a business. The four perspectives of the balanced scorecard – customer perspective, internal perspective, innovation and learning perspective, and financial perspective. 1) CUSTOMER PERSPECTIVE: This measure market shares and customer satisfaction. The main objective is to ensure customer loyalty and lifetime value. To ensure that the objective is meeting the customer’s perception of services, appropriateness of the target market, and customers purchase pattern will be evaluated virtually. Thus, Toyota can use this strategy to increase customer trust and loyalty. 2) INTERNAL PERSPECTIVE: This includes friendly user interfaces, powerful software architecture, and effectiveness of the distribution system. This critical analysis of the human resources department, information technology and distribution medium. Thus, this perspective evaluates the efficiency and effectiveness of all the business process involved and enhances them for better customer satisfaction. 3) LEARNING AND GROWTH PERSPECTIVE: This is designed to measure the effectiveness and speed of innovation and creativity in Toyota, compared to that of their competitors. Innovation is still a necessity to offer more secured product and services to their customers; while increasing sales and market shares.

4) FINANCIAL PERSPECTIVES: Financial perspective is mainly used to measure the return on all investment. BALANCE SCORECARD OF TOYOTA Vision:

To be the most successful and respected car company in America

Mission:

“To attract and attain customers with high-value products and services and the most satisfying ownership experience in America.”

Strategic Themes:

Public Safety

Strategic Objectives

Environmental Sustainability

Innovation

Social Infrastructure

Strategic Measurements Initiatives Lag Indicators

Increase Profitability Increase sales on emerging markets Sustainable financial growth

Lead Indicators

1) Financial Profit margin Mix revenue growth Participation on emerging markets Cash flow

Marketing Investment

Reach out to the lowest segments and analyze the downfalls, projected earnings if sales and production were high

2) Customer Regain customer's trust Establish a worldwide brand leader Improve communication channels and feedback

Brand Trustworthiness Brand Recognition

Overall customer satisfaction Marketing investment

Create metrics for consumer notoriety and like ability of brand, create new ads

Less response of customers to feedback

Ethical approach towards customers 3) Internal Process To strengthen the internal systems Improve product development process

New Product revenue Customer satisfaction

Increase the employee training Time to get the product to the market

Improve efficiency and effectiveness

Increase research and development results with sustainable products Innovative products

Respond quickly to market quality issues from the customer perspective Empowerment Improve employee recognition Training programs to improve employee's abilities

4) Learning and Growth Employee Objectives to improvement achieve

Employee satisfaction

Teamwork rewards

Create customer service rewards and goals to improve new customer service practices, create performance rewards for employees who reach out to different organization

Toyota Strategy Roadmap...