Construction Of The Balanced Scorecard In Yu Heng Optical Co. Ltd.

The competitive nature of economic globalization has posed greatchallenges to Chinese enterprises. While embracing broad opportunities ingaining market share on a global scale，some Chinese enterprises findthemselves hard to endure the pressure of foreign counterparts that offerbetter products or services. And an even more upsetting fact is that manyChinese enterprises are bounded by their outdated management model.Considering the context of globalization, the traditional pattern of runningbusinesses is ineffective for resolving key issues such as facilitating internalmanagement, promoting business concept transformation and triggeringtechnological innovation. Therefore, it is imperative to improve theunderperformed business ecology of traditional Chinese enterprises withscientific approaches. The cornerstone lies in a reasonableperformance-appraising system like Balanced Score Card (BSC) which isintroduced in this paper. BSC was created by Robert Kaplan and David Nortonbased on their studies and improvement of the schedule used by the companyAID. It mainly deals with four management-related topics: finance, customer,internal process and learning and growth. BSC enables business managers tofirst target at the mission, values and strategy of the enterprise separately, andthen coordinate between them, before conveying them to each employeethrough a designed communication procedure. The goal is to ensure theefficiency of enterprise’s activities and to satisfy stakeholders, includingemployees, customers and shareholders. In this sense, BSC is an effectivetool for enhancing performance management. This paper, beginning with thediscussion of the performance management of enterprises, elaborate on thewelcomed tool BCS with both theoretical introductions and a case study aboutits feasibility. The formal part covers the term definition, origin, developmentand features; the latter one aims to apply BCS to clarifying the developmentstrategy of the enterprise and spotting the potential problems that go against the strategy, so as to emphasize the relevance of establishing and improvingthe performance-appraising system with helping an enterprise to win marketcompetitions. In a word, this paper attempts to propose and comment on ahighly feasible performance-appraising system that can meet with the currentsituations of Chinese enterprises with real case evidence.