Ellen Bright, CEO of TWA Parts (TWAP), looked at the two balanced scorecards before her. One, from the luxury division, showed strong financial results; while the other, from the economy division, reported disappointing financial performance but good progress in achieving the targets for its nonfinancial goals. She wondered what feedback she should give the heads of each division about their progress in implementing their strategies.

TWAP, a $ 6.6 billion subsidiary of a U. S. diversified manufacturing company, was a Tier 1 manufacturer of original and after- market parts for automobile producers in the United States and abroad. TWAP had been directly affected by the downturn in the auto industry. Major customers, including Chrysler and General Motors, were on the brink of insolvency, and even robust car mak-ers, such as Toyota and Honda, were selling many fewer cars amidst the global recession. TWAP manufactured two core product lines— electronics and interiors— in four customer- centered divi-sions: luxury, economy, mid- priced, and truck. TWAP served three geographic markets: North America, Europe, and Asia. Bright believed she had to make radical changes in strategy and then implement the new strategy flawlessly in order to take advantage of opportunities in international markets, particularly emerging markets, such as China.

1. Describe the business strategy of each division?

2. What must each division do well to execute its strategy?

3. What was Trans world Auto Part’s rationale for introducing a balanced scorecard?

4. Comment on the strategy maps and balanced scorecards of the luxury car and economy car divisions? Which division manager prepared a better balanced scorecard and strategy map?

5. Which division manager performed better?

Required

1. Describe the business strategy of each division.

2. Comment on the strategy maps and balanced scorecards of the luxury car division and the economy car division. What would you change in the strategy maps and balanced score-cards of each division?

3. Which division manager prepared a better strategy map and balanced scorecard?

4. Which division manager performed better? Explain.