Name: Cao Cam Giang Student code: CQ 520859 Class: High quality auditing class Intake: 52 University: National

Economics University Subject: Management Control Systems MIDTERM ASSIGNMENT Requirements: ThuongDinh Footwear Ltd is one of most famous shoe manufacturer in Vietnam is persuading high quality product strategy. The company sets up goal at 10% increase of profit in the year of 2014. Deisgn a balanced score-card with metrics for measuring performance of ThuongDinh Footwear Ltd. Answer: With a view to achieve final goal, the balanced score-card have to offer metrics as clear as possible and in comprehensive manner. The balanced score-card below includes 4 parts. They are designed to measure the companys performance from four perspectives: Financial Customer Internal business Innervation and learning

I/ Financial perspectives
Metrics Revenue growth rate Explanation Revenue has grown 9% in recent year. However, the objective for revenue growth speed for the year of 2014 should be 12% to cover the expense of concentrating on high quality product. Profit growth rate have to be at least 10% as stated clearly in 2014 business goal. Because this year promises good signal of global economy and a rise in demand of high quality shoes. Based on high quality product strategy, the company obviously incurs more expenses in COGs. However, the profit margin is still determined at a bit higher than last year in order to assure customer about product and to remain competition as well. Because of necessity of some new machine for the upcoming year, the average asset of the company may rise. This change accompanies with 10% increase of profit can allow us to satisfy with unchanged ROA ratio for the year of 2014.

Profit growth rate

Profit margin

Return on assets

II/ Customer perspective

Metrics Market share Explanation Market share have to grow at least medium speed. Based on offered product that are dominating on shoes market, and our new high quality product line are start to compete with famous international brand to attain considerable market share based on high quality and reasonable price level. Back order reflects customers dissatisfaction, so it is determined at low level to ensure high quality product strategy. This can be measured by customer feedback, questionnaires, number of complaint letters This is vital factor to raise sale volume and penetrate high quality shoe section of the market. Therefore we have to satisfy our customer absolutely. This is another aspect we have to focus on when implementing high quality product strategy. It can be measured by repeat purchase, customer referals. It has to show positive changes. There are more order from new retailers and hey retailer continue to order more in continuous and incremental trend.

Back order Customer satisfaction

Customer loyalty

Key accounts order

III/ Internal business perspective

Metrics Capacity Utilization Inventory turn over Explanation Objective for the metrics is to optimize fixed asset by sharp decrease in abundant hair of machine. Our new lines of high quality product are at their introducing stage in their life. Thus reasonable and incentive goal for this metric is depend on rapid turnover of other products. Have to be control strictly at high level to specify, defective of rework product will be reducing. Warranty claims and a cycle sale service expense should go down significant amount. Cycle time equal Processing time plus Storage time plus Movement time plus Inspection time can be accepted to decline slightly. Purchasing expense will rise but less than double purchase from good supplier and frequently check to assure high quality. Measured by worker qualification or their productivity. The rate of leaving in workforce should be low to ensure stable manufacturing process.

Quality

Cycle time Purchase quality and expense Qualified worker Worker loyalty

IV/ Innovation and learning perspective:

Metric Research and development expense New equipment Training expense Level of innovations Explanation This Kind of expense will be high level relative to the last year.

This confidently large amount of expenditure will be spent on new equipment to entire high quality product grow in long-term Send key staff to be train abroad as well domestic can account for considerable amount of experience. In the upcoming years, innovative ideas from designer will be appeared, so that quality and quantity of innovation are able to increase dramatically. It can be measured by number of new product accompanied by customers reception to the product.