Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 34

Balanced Scorecards and Strategy Maps

Monroe Corporation makes precision parts for boats and aircraft. Quality is an important competitive advantage in the industry and the company prides itself on the quality of its products. The company recently adopted a balanced scorecard for performance evaluation. Monroe uses the following strategy map to communicate its strategy to its managers and line employees:

Required

a. Using the strategy map, comment on the performance measures used for each of the four perspectives of the scorecard. Would you recommend any changes to the measures? If so, what changes would you make? Why?

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b. What are the strengths and weaknesses of the strategy map as developed by Monroe Corporation?

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c. Recommend changes to the map that will better communicate the strategy for Monroe Corporation and incorporate your recommendations from requirement (a).

Step 1 of 5

Business strategy

It is an approach used by a company for deploying its resources, assets and capabilities to provide maximum returns to its investors and meeting customer expectations. It is component of high-level strategy plan and defines value preposition.

Balance scorecard