Balanced Scorecard Implementation and Analysis: Gordon Manufacturing

This report provides a balanced scorecard analysis of Gordon Manufacturing, examining its performance across four key perspectives: financial, consumer, internal processes, and learning and growth. The financial perspective assesses the company's financial goals, including revenue growth, market share, and return on equity. The consumer perspective focuses on customer satisfaction, lead time, and product quality. The internal process perspective evaluates manufacturing excellence, new product development, and operational efficiency. Finally, the learning and growth perspective explores employee training, innovation, and continuous improvement. The analysis highlights the interconnections between these perspectives and how they contribute to the company's overall strategic goals, offering insights into how Gordon Manufacturing can improve its performance and achieve its objectives. The report also includes references to relevant academic literature.

Running head: BALANCED SCORECARD IN GORDON MANUFACTURING
Balanced Scorecard in Gordon Manufacturing
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Table of Contents
Question 5............................................................................................................................2
References............................................................................................................................6

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Question 5
The balanced scorecard can be explained as a tool which transforms a company’s strategy
and mission within a set of performance measures which offer a structure for strategy
implementation (Bhattacharya et al., 2014). Balanced scorecard for the Gordon manufacturing
company is analyzed to analyze the relationship among the aspects of this framework. This
includes planning, strategy, production, performance targets, motivation, cybernetic impacts and
control. The balanced scorecard that is prepared for the company includes interconnected
hierarchy that includes financial goals by means of internal consumers perspective, processes
along with learning and growth that serves as a manner in attaining long term achievements
(Junior, de Oliveira & Helleno, 2018).
Figure 1: Balanced Scorecard of Gordon Manufacturing Company

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(Source: Perkins, Grey & Remmers, 2014)
The perspectives of balanced scorecard for Gordon manufacturing company is explained
below:
Financial Perspective- This perspective for Gordon manufacturing company indicate
whether the strategies, implementation and execution of the company contribute to its bottom
line improvement (Shen, Chen & Wang, 2016). Considering the same, Gordon manufacturing
company indicated its financial goals to include aspects such as surviving, succeeding and
prospering. Through attaining these goals, the company will be able to increase its net revenue
by 10% in the upcoming year. Moreover, the survival of Gordon manufacturing company in the
industry will be measured by its cash flow position, increase in its quarterly sales along with
operating income in all its manufacturing units. This has facilitated the company in attaining an
increased market share by segment along with return on equity by 15% (Wang, Chang, Williams,
Koo & Qu, 2015). Through making vital improvements by the company in its operations can
facilitate in developing an effective financial control system that can further ensure financial
success of the organization.
Consumer Perspective- This perspective ensures that the managers of Gordon
manufacturing company transform their general mission statement on consumer service in
particular measures which indicates the aspects those are important for the consumers. In this
manufacturing company lead time serves as an important factor that is necessary in addressing
consumer demands in time (Shen, Chen & Wang, 2016). Lead time for this manufacturing
company indicates time to market and time taken by the production process to bring new product
for its consumers. Quality is needed to be maintained for all its manufactured goods through

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attaining on-time delivery along with accuracy of delivery forecast of the company (Junior, de
Oliveira & Helleno, 2018). This can facilitate Gordon manufacturing company in increasing
value of each purchase of the company’s products by 15% in the upcoming year. Senior
managers in Gordon manufacturing company established general goals focused on attaining
effective consumer performance. Such factors include improving consumer time to market,
positioning as consumer supplier of choice by maintaining partnerships with them and through
developing innovative products for attaining consumers’ needs.
Internal process perspective- The organization is determined at attaining the objectives
of this perspective that includes implementation of submicron technology capability. This is in
order to focus on attaining manufacturing excellence, design productivity along with
manufacturing of new products (Kutsch, Ward, Hall & Algar, 2015). Through enhancing such
factors Gordon manufacturing company can transfer at least 30% of its sales and production to
new channels and manufacturing units. In addition, certain important factors those have
increased impact on consumer satisfaction includes cycle time, employee skills, quality along
with productivity. The core competencies are recognized by Gordon manufacturing company
that ensures its sustained market leadership (Rasoolimanesh, Jaafar, Badarulzaman & Ramayah,
2015). The manufacturing orgaanzations recently has a limitation in implementing effective
operational information system that is resulting in decreased company’s regular management
routines and information reports are not developed timely. This aspect is required to be
addressed through implementing a responsive information system.
Learning and Growth Perspective- Due to increased market competition, there is a
continuous need for making regular improvements and innovation in their existing products in
increasing organizational value. Gordon manufacturing company’s focus is to develop its ability

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to introduce new products rather than enhancing existing goods manufacturing (Duarte & Cruz-
Machado, 2015). In such situation Gordon manufacturing company employs an adequate sales
percentage from new products as one of its improvement and innovation measures. In case sales
from the new products are trending in downward direction and the managers can explain issues
that took place in developing new product design. The improvement program of the company
includes process defect measures, missed deliveries along with scrap were to be decreased in the
next few years. Considering these aspects, Gordon manufacturing company will focus on
attaining objective of training 100% of its workforce (Zizlavsky, 2014).

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References
Bhattacharya, A., Mohapatra, P., Kumar, V., Dey, P. K., Brady, M., Tiwari, M. K., &
Nudurupati, S. S. (2014). Green supply chain performance measurement using fuzzy
ANP-based balanced scorecard: a collaborative decision-making approach. Production
Planning & Control, 25(8), 698-714.
Duarte, S. & Cruz-Machado, V., (2015). Investigating lean and green supply chain linkages
through a balanced scorecard framework. International Journal of Management Science
and Engineering Management, 10(1), 20-29.
Junior, A. N., de Oliveira, M. C., & Helleno, A. L. (2018). Sustainability evaluation model for
manufacturing systems based on the correlation between triple bottom line dimensions
and balanced scorecard perspectives. Journal of Cleaner Production, 190, 84-93.
Kutsch, E., Ward, J., Hall, M., & Algar, J. (2015). The contribution of the project management
office: A balanced scorecard perspective. Information Systems Management, 32(2), 105-
118.
Perkins, M., Grey, A., & Remmers, H. (2014). What do we really mean by “Balanced
Scorecard”?. International Journal of Productivity and Performance Management, 63(2),
148-169.
Perkins, M., Grey, A., & Remmers, H. (2014). What do we really mean by “Balanced
Scorecard”?. International Journal of Productivity and Performance Management, 63(2),
148-169.

7BALANCED SCORECARD IN GORDON MANUFACTURING
Rasoolimanesh, S. M., Jaafar, M., Badarulzaman, N., & Ramayah, T. (2015). Investigating a
framework to facilitate the implementation of city development strategy using balanced
scorecard. Habitat International, 46, 156-165.
Shen, Y. C., Chen, P. S., & Wang, C. H. (2016). A study of enterprise resource planning (ERP)
system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry, 75, 127-139.
Wang, S. H., Chang, S. P., Williams, P., Koo, B., & Qu, Y. R. (2015). Using Balanced Scorecard
for Sustainable Design-centered Manufacturing. Procedia Manufacturing, 1, 181-192.
Zizlavsky, O., (2014). The balanced scorecard: Innovative performance measurement and
management control system. Journal of technology management & innovation, 9(3), 210-
222.