BALANCE SCORE AND STRATGEY MAP ANALYSIS OF CHEVRON Essay

BALANCE SCORE AND STRATGEY MAP ANALYSIS OF CHEVRON - Essay Example The balanced score card is used here as a strategic management tool and strategic control system. The balance score card is supplemented with a strategy map. The strategy map use a more direct approach to depict the cause and effect relationship between the various objectives across finance, customer, internal process and learning and growth. The research report also involves a detailed explanation of the link between each type of objective. Apart from that the strategies are also linked with the mission and objectives of Chevron. Based on the observations obtained from the balanced score card and the strategy map, a recommendation is prepared. A critical analysis of the balanced score card is also provided along with limitation and conclusion in this report. Table of Contents 1.0 Introduction 4 2.0 Vision of the company 4 3.0 Strategy 5 4.0 Designed Balanced Scorecard 6 4.1 Customer perspective 7 4.2 Financial perspective 7 4.3 Learning and innovation perspective 9 4.4 Internal proc esses perspective 9 5.0 Balance of balanced scorecard 10 6.0 Strategy map (ping) 12 7.0 Links within each perspective 13 8.0 Links with respect to particular company 14 9.0 Recommendations 14 10.0 Balanced scorecard a critical analysis 15 11.0 Limitations of balanced scorecard 16 12.0 Conclusion 16 Reference 18 1.0 Introduction Chevron is a global energy company which deals into various kinds of energy sources like oil, natural gas, oil sands, geothermal, solar energy. The company is catering to the growing demand of energy for the world and at the same time making sure that the nature and environment is kept safe for a healthier and greener tomorrow (Anthony et al., 2011). In the next 35 years, it is estimated that the energy demand will increase by 40% of what is today. In order to cater to the growing demand of the world, efforts are underway to find new means of energy resources. As such the energy resources are scarce and it is estimated that by 2035 more than 30% of the world population is going to survive on renewable sources of energy. Chevron continues to search the horizon for better cleaner and more efficient sources of energy. This endeavour is costly and time consuming and most of the time there are no pay offs from such endeavours. Besides conducting the search for better and cleaner energy and feeding the world with its energy demands, Chevron is also committed to provide a greener and cleaner environment. Various other endeavours involve expenses and Chevron needs to make sure that the ultimate payoff is able to compensate for the costs endured (Argyris, 2007). In order to prepare a road map that can lead to better strategic position in future a balanced score card along with strategic map is presented in this research topic. 2.0 Vision of the company Chevron envisions supplying the world with energy products that will help to create sustainable economic progress as well as human development all across the world. To create people and organisati on equipped with excellent capabilities and commitment (Forza and Salvador, 2001). To built a strong brand image among customers, governments, employees as well as local communities. 3.0 Strategy The road to a sustainable future is structured by using balanced score card and subsequent creation of a strategy map to show the implementation of the balanced score card. The strategy is to improve the learning and growth indices. So that improved employee