In a high level of business competition, every company tries to create a distinct competitive advantage from competitors in order to reach the improvement of value of firm. For that, the company creates strategies that translated into strategic goals that will be communicated to employees. The company needs to know the effectiveness and the efficiency of the achievement of the strategic goals through the comprehensive performance measurement which is known as Balanced Scorecard that includes a financial and non-financial perspectives.
The purpose of this research is to analyze the company’s performance by using Balanced Scorecard, and to analyze cause and effect relationship resulting from each perspective of Balanced Scorecard.
PT J.A Wattie, Tbk is the parent company which manages operational business activities from the entity companies that own plantations and processing plants, such as: rubber, oil palm, cocoa, tea, and coffee.
Research results show that the company is in the sustain phase. The company’s performance based on the financial perspective is less good due to a decrease of ROA (5,06%), ROE (10,47%), and current ratio (200%). The performance based on customer perspective is good due to the increase of customer retention (32,61%), and less good due to the decrease of customer acquisition (8 customers). The performance based on internal business process perspective is good due to the decrease of defect rates (0,08%) and the application of environmental sustainability concept in production process. Furthermore, the performance of learning and growth perspective is good supported by the presence of capable employee, good information systems, and work atmosphere that encourages the creation of motivation, alignment, and empowerment.
PT J.A Wattie, Tbk needs to increase his own crops production because it provides greater benefit than crops from other parties, and keep maintaining product quality in order to produce high quality products that always meet customer specifications, create customer satisfaction, and increase market share. |