sample of balance scorecard case study

1. Philippines Airlines
Balance Scorecard Reported by:
HumRes S03 Group 1

2. Company Background
• Founded in February 1941
• In 1946, The First Asia Airlines
across the Pacific
• In 1947 started Europe route
service
• On 1995 suffered and suspends
operations as the Asian
financial crisis in 1998.

3. Company Background
• In March 2000, PAL reported a net
income of Php44.2 million for its • in 2010 , Most trusted airline brand
first year under rehabilitation. for Filipino consumers
• April 2012, under new
management after being
• in 2004, Embracing electronic
acquired by the San Miguel
commerce with the introduction of its
Group
Online Booking service.

4. Vision
• To maintain aircraft with the highest degree of airworthiness, reliability,
and present ability in the most cost-effective manner
• To conduct and maintain safe, reliable, and cost-effective flight
operations
• To achieve On-Time Performance on all flights operated
• To provide safe, on time, quality, and cost-effective inflight service for
total passenger satisfaction
• To maximize revenue generation in passenger and cargo sales
through increased yields by diversifying market segments and efficient
management of seat inventory and cargo space

5. Mission
To become the dominant carrier in the Asian region

6. Balance Scorecard
The Balanced scorecard is a management system that enables
organizations to clarify their vision and strategy and translate
them into action.
Balance scorecard also provides an organization with feedback
of both the internal business processes and external outcomes,
which allows for continuous improvement of strategic
performance and results.

7. Balance Scorecard
• Objective - what the strategy is to achieve in that
perspective;
• Measures - how progress for that particular objective
will be measured ;
• Targets - refer to the target value that the company
seeks to obtain for each measure ;
• Initiatives - what will be done to facilitate the reaching
of the target.

8. Balance Scorecard Analysis
A. Financial Perspective
Objective Performance Targets Initiatives
Measure
Revenue growth Ticket revenue Increase sales by % Opening new
international
routes
Cost reduction Lesser cost % Decrease in cost Maximize sister
expense company
partnership
Asset utilization Higher tangible Increase in service Purchase of new
asset capacity modern aircraft

9. Balance Scorecard Analysis
B. Customer Perspective
Objective Performance Targets Initiatives
Measure
High customer Customer % satisfaction Mabuhay Miles
satisfaction ranking program
Reinforce brand Customer Ranking change Media marketing
image ranking

10. Balance Scorecard Analysis
C. Internal Business Perspective
Objective Performance Targets Initiatives
Measure
Payment Payment Increase in sales % Payment kiosk
convenience methods
Flight meal Customization Increase % of food Food choices
of food menu choices varieties
Cost reduction Operation cost Decrease in oil Monitoring of
consumption cost international oil
price change

11. Balance Scorecard Analysis
D. Innovation and learning perspective
Objective Performance Targets Initiatives
Measure
Employee Employee Increase in work Increase in salary and
retention and satisfaction efficiency and retirement plan
productivity satisfaction in both
employees and
customers
Improvement in Decrease in attrition Dropping the criminal
relationship with rate charges against labor
labor union union members

12. Thank you for flying with us