Transworld Auto Parts (A) - Case Solution

1. Which Transworld Auto Parts’ division manager performed better?

For Transworld Auto Parts’ BSC, a framework denoting the strategic theme for the company to follow is portrayed and split into four main categories of financial and non-financial perspectives and their influence on each other.

If we analyze the divisions’ performance in terms of the presented framework, then the manager from the luxury division, Mr. Eckard, performed better.

The luxury division outperformed its objectives in regard to the financial perspective by surpassing its cash flow and profit objectives targets.

Therefore, applying this to the framework above, the luxury division of Transworld Auto Parts would have had to implement positive initiatives across all other perspectives in order to achieve such high performance.

This is also demonstrated through the fact that although Eckard’s division had had a slight drop in its quality indicators, its other non-financial measures regarding customer initiatives were almost on target.

Furthermore, financial and customer goals are lagging indicators that only improve after a strategy has been correctly implemented, thus reinforcing that Eckard has performed better in terms of…