DEVELOPING A BALANCED SCORECARD FOR AUTOMOBILE AND MOTORCYCLE MANUFACTURERS: A CASE STUDY AT HONDA VIETNAM COMPANY

Abstract

The Balanced Scorecard (BSC) is seen as an effective administrative tool for enterprises to achieve their strategic objectives. Thanks to the streamlined design of the four main perspectives including Finance, Customer, Internal process, Learning and Growth, enterprises can successfully realize strategic expectations. This paper aims to propose a strategic map and key performance indicators (KPIs) in a balanced scorecard that are consistent with the characteristics of Vietnam’s automobile and motorcycle manufacturers, with an empirical study at a typical enterprise, Honda Vietnam Company. The study was conducted through surveys as well as in-depth interviews of 75 specialists, representing the Sales, Planning, Manufacturing, Accounting, Customer Care and Human Resources departments. Research results show that all strategy targets receive high consensus from experts at a level above "agree" (mean from 3.04 to 4.92). All 39/39 indicators to measure 21 strategy targets of Honda Vietnam Company were evaluated by experts with an average value ≥ 3.5. Based on survey results, a balanced scorecard was proposed with detailed steps, from designing the strategic map and KPIs to integrating them into the management system in line with Honda Vietnam Company’s strategic objectives.