Evaluation of Performance of BW Group using Balanced Scorecard and Key Performance Indicators

BW GROUP, NORWAY
Internet-Based Case Study
BW GROUPS
http://www.bw-group.com/about-us
Group Members

Introduction:
BW Group is recognised as a leading maritime group that operates all over the world
involving infrastructure of floating gas and shipping as well as deepwater gas and oil
production. In addition to this, the group supplies energy along with other essential
commodities since more than 80 years (Bw-group.com., 2018). For doing so the group has a
controlled fleet of more than 300 ships that include subsidiaries and affiliates. In 1955, Sir
YK Pao formed this group in Hong Kong as World-Wide Shipping. In the year 2003, BW
Group acquired Bergesen, the largest shipping company of Norway. After two years, this
group was branded again with the name BW. In recent year, BW Group acts as the largest gas
shipping fleet across the world. This shipping fleet has 70 gas vessels of large size that
include three floating storage along with degasification units.
Evaluation of performance:
It is essential for any company to determine its performance through comparing the
outcomes related to objectives and evaluation at what extend it can meet its targets. Thus, it
can be said that all organisations have remained concerned regarding their performance
measurement without considering size, nature or internal operating structure (von Bonsdorff
et al., 2018). For a modern company, creditors and owners measure performance of
management through considering financial statement ratios like earnings per share, dividends
per share, return on equity of stakeholders and return on assets. This process also considers
coverage ratios as well as debt ratio. Thus, in maximum companies, it has become essential to
develop a strong base for measuring cost performance of companies along with profit and
investment centres. This is because cost performances are considered as responsible
regarding the performance of company.

Introduction of balanced score card (BSC):
The balanced score card implies a performance matrix that an organisation used in
strategic management. Through this process, the organisation can recognise and improve
different internal functions related to business as well as external outcomes. Thus, this
process helps to measure and give feedback to the specified organisation (Cooper, Ezzamel &
Qu, 2017). The chief motive of using this scorecard is to introduce good behaviours within an
organisation through analysing different areas. This BSC can be divided into four parts,
which are financial perspective, customer perspective, process perspective and learning as
well as growth perspective.
Figure 1: Balance score card
Source: (Iskandar, 2017)
Financial perspective: The chief objective of this perspective is to increase opportunities for
earning revenues and develop cost structure. For this, the company can measure revenue
percentage from new customers and revenue percentage from new products. It also can
consider cost per unit as benchmark to develop cost structure against competitors. BW Group
has some core business categories, which are, floating gas and shipping infrastructure,
production of oil and deepwater gas and supplying energy (Alhouli, Elhag, Alardhi &
Alazemi, 2017). The company operates as the largest gas shipping fleet in this world while
BW Offshore operates as the second largest fleet for producing floating oil and gas. Thus, the