Assignment:
The Balanced Scorecard case study and simulation are in your coursepack.
Here are your instructions:
The Delta/Signal case study and Balanced Scorecard simulation will help you experience the benefits and challenges of using a scorecard to implement strategic initiatives and measure firm performance. The simulation will give you the opportunity to choose a strategy, create a strategy map, develop a balanced scorecard for your company, choose initiatives to implement your strategy, and use feedback from the balanced scorecard to adjust your implementation approach over time. At the end of the simulation, the firm with the highest firm value will be the "winner:'
The case and simulation begin with a team of students acting in the role of a new CEO of a struggling automotive parts manufacturer. You will select among four firm strategies and then design a strategy map and balanced scorecard to assist in your firm's performance evaluation and strategy implementation approach. You will then spend the next eight game periods (four-game years) implementing your chosen strategy. Note that each of the four strategies is designed to have an equal potential for success and that your performance will be independent of the choices made by other teams. Your primary job is not to look for the right strategy but to execute your chosen strategy to achieve the most favorable long-term outcomes.
You implement your chosen strategy by choosing among many potential initiatives with the constraint being a limited financial budget. There are a wide variety of initiatives to choose from, all of which have worthy objectives for improving firm capabilities, serving customers, and/or improving financial performance. However, some initiatives are more effective at helping the firm achieve its objectives than others.
Successful companies will choose initiatives that are both consistent with their chosen strategy and effective. Your team will receive feedback on your company's performance in the form of firm financial statements and scorecard metrics that include both financial and non-financial data.
Successful firms will use this feedback to evaluate the effectiveness of their initiative choices and adjust their chosen initiatives to optimize the implementation of their strategy. Performance evaluation is complicated by the fact that feedback measurements will vary based on several factors including the alignment between strategies and initiatives chosen and lags between the timing of investment spending and the ability to measure outcomes.
Upon completion of the eight turns, a private investment firm buys the equity of each company. The price paid in the buy-out transaction is based on the company's ending financial position and the investment firm's assessment of the company's future prospects as driven by the initiatives chosen.
Attachment:- Balanced Scorecard.rar