22 Feb Performance Measures and the Balanced ScorecardIn
Performance Measures and the Balanced ScorecardIn 2005, General Motors Corporation (GM) sold 9.2 million vehicles worldwide, the second-largest volume in the company’s history. The good news was that sales increased in three of GM’s four business regions, and all-time sales records were set for the Asia Pacific, Latin America, and Africa and Middle East regions. The bad news was that unit sales were down 3.1 percent in North America. As a result, GM’s share of the global automotive market was 14.2 percent in 2005, down from 14.4 percent in 2004. The company is therefore revamping the way it does business. For example, it is investing $545 million in five core Michigan plants, pursuing hybrid technologies and alternative fuels, and seeking sensible labor contracts with its unions. Before answering the following questions, do a quick Internet search to determine what else GM is doing to revitalize itself.1. What financial and other performance measures mentioned in the chapter would have prompted GM to revitalize itself?2. The balanced scorecard uses performance measures that are linked to the perspectives of all stakeholder groups. Who are GM’s stakeholders, and what performance measures do they value?3. In your opinion, what options does GM have for revitalization?