BALANCED SCORECARD

Balance Scorecard And Strategy Maps: Essar Energy PLC

Balanced scorecard and strategy maps

Executive summary

This report provides an analysis and evaluation of the Essar Energy PLC through the use of business scorecards and strategy map. The analysis includes the various dimensions affecting the company i.e. financial, customer, internal process and learning and growth. All of these dimensions are captured in the business scorecard that evaluates the financial feasibility and other strategies that can be implemented for improvement in revenue. The strategies, if implemented properly and according to plan can yield substantial results for Essar Energy including more return on capital, increase profit margins and customer satisfaction, dealer profitability and improved asset utilization.

The report finds that prospects of the company in this particular region are bright and it is here to stay. There is a need to implement strategies successfully. The company initially has problems with cost leadership strategy with no market orientation. Then the company switches to this scorecard strategy. Recommendation discussed include

More focus on revenue improvement and productivity by emphasizing on non gasoline products and customer value proposition.

More focus on dealer profitability and satisfaction.

More emphasis on bottom up communication and implementing employee ideas to give them more sense of authority and make them more committed to the company.

The company that I have chosen for the analysis is Essar energy PLC. The reason of choosing Essar energy is that it is one of the largest publicly traded oil and Gas Company in India fulfilling energy needs that that help developing and growing economies which ultimately improves the standard of living around the world (Essarenergy, 2012). Essar energy Plc is Indian oil and Gas Company that is listed in UK and it is an owner of huge refinery in UK. Its basic operations include exploration, production, refinig and marketing of oil and gas products. In addition to this, it provides low cost energy to its home country India along with other countries like Vietnam, Indonesia and Nigeria For the purpose of this analysis I have assumed that the company is entering the North American market and has to make a substantial investment

Task 1: Strategic Vision statement

Essar's strategic vision as per their official website is “to create a world class, low cost integrated energy company, positioned to capitalize on India's rapidly growing energy demand”. It is clear from their vision statement that Indian market is an integral part of their strategy and still remains an Indian focused energy company with assets invested in primarily oil and gas sectors.

Task 2: Balanced Scorecard

Essar is a renowned low cost company that thrives on its low operating costs as compared to their competitors. Hence the strategy most suitable to the company is cost leadership. The company maintains to keep the same strategy of cost leadership but at the same time aims at attracting those customers that are not that price sensitive and are willing to pay the extra premium if provided with some ...