Application Of Balanced Scorecard In Lubricants Marketing Strategy Of Shell China

In the case about Shell China Ltd., this thesis introduced a systematic tool for strategy implementation, the Balanced Scorecard, and how to apply in the company. Shell China Lubricant Department researched China lubricants market and internal sales structure when its operation result was not satisfaction, and then took the diesel engine lubricant market as break point to improve market share and operation performance. Shell China set a three-year market strategy objective. So Shell China use the balanced scorecard, a structured approach, for ensuring alignment of day-to-day business operations with the business strategies determined by the executive team. The balanced scorecard helps management think through the areas of strategic importance by effecting a balance among four measures: the business's financial health, customer contentment, the quality of the business 's internal process, and the business's ability of learning and growth. Shell China Management team translated marketing strategy into metrics about four issues of the balanced scorecard which was crucial for achieving the strategic objective. Shell appointed specific staff responsible for these metrics by department and drived these metrics down through the organization to the front-line staff. In the same time, Shell China linked the staff motivation system with metrics of the balanced scorecard, and applied new information system to handle information data and provide to relative staff. With everyone understanding the objectives and knowing his own contribution to the strategy, the organization was better focused and the results achieved or exceeded management's expectation.