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Amanco Developing The Sustainability Scorecard Case Solution

Solution Id Length Case Author Case Publisher
1534 1080 Words (3 Pages) Robert S. Kaplan, Ricardo Reisen de Pinho Harvard Business School : 107038
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In the case of Amanco, it is apparent that the company intends to use its socially responsible and eco-efficient behaviour towards developing a favourable opinion in the mind of consumers and ultimately charge a premium from them, hence, it cannot be termed as purely corporate social responsibility. Though Amanco is making an effort in the industry by using less-harmful raw materials, which should be appreciated but it is doing so more for its own sake of deriving long term revenue stream out of it rather than with a sole intention of doing good.

Following questions are answered in this case study solution

  1. Why has Roberto Salas chosen to develop a strategy map and Balanced Scorecard to represent Amanco’s triple bottom line objectives? 

  2. Why did Salas choose to modify the traditional strategy map/ BSC format? 

  3. Is the Amanco’s strategy an example of corporate social responsibility or corporate self-interest?

  4. What challenges does Salas face with implementing Amanco’s strategy

Case Analysis for Amanco Developing The Sustainability Scorecard

1. Why has Roberto Salas chosen to develop a strategy map and Balanced Scorecard to represent Amanco’s triple bottom line objectives? 

The core idea of formulating triple bottom line objectives for Amanco was to be recognized in the industry as eco-efficient and socially responsible operator from the perspective of customers. However, it was not the goal, Amanco expected that operating responsibly would result in development of competitive advantage by formulating a favourable image in the mind of consumers. Roberto Salas anticipated that after a while, the responsible behaviour of the company would get noticed and customers will be willing to not only pay a premium but also stay loyal with the firm. Based on this set of assumptions and goals, Salas pursued the triple bottom line idea, but after a while he realized that the initial scorecard only classified certain programs without presenting the logical flow among them. So, Salas absorbed the idea of strategy map to exhibit the role of stakeholders, particularly customers who were represented as growth engines with all actions revolving around them. With the help of a strategy map and the balance scorecard, Salas was in a position to effectively articulate the company’s primary idea by exhibiting a clear and logical flow of programs. This would not only make it easier for the country managers to understand and work on the new initiative but would also assist them in communicating with middle managers. Moreover, the logical flow allowed for easy track of progress with respect to its impact on stakeholders. Furthermore, it also made the process of revision relatively easier due to clear representation.

2. Why did Salas choose to modify the traditional strategy map/ BSC format? 

Despite working elaborately on the development of strategy map and sustainability scorecard, Salas felt that it was considerably difficult and had multiple loopholes with respect to its execution. For instance, it did not have a pre-defined owner and in different regions it was being led by different departments. Due to this issue, there was no clear accountability and feedback mechanism present. In addition to this, the strategy map exhibited the planned strategy of the company but in many cases it was distant from the potential strategy due to lack of resources and competencies so there was an unrealized gap in planning, which couldn’t be identified. Moreover, there was no direct link between performance and compensation. In fact, some of the metrics used for performance evaluation did not provide relevant information. Furthermore, country managers who were the owners of this idea in terms of accountability were not able to connect the dots for value creation. There was a cloud of confusion regarding what purpose this whole activity would serve and why the top management was investing huge amount time and financial resources in this regard. Hence, it had become essential for Amanco to modify or adapt the strategy map along with sustainability scorecard in a way that it fulfils the core objective of its formation i.e. to represent the logical flow of triple bottom line objectives and ultimately lead to competitive advantage by forming a favourable image in the mind of consumers. 

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