Balanced Scorecard Theory In The Case Of L Oréal

Methodology:

This chapter aims to map out the methodological fundamentals, creating the basis for data collection and the framework of the analysis. The chapter starts off with the chosen methodology being presented and justified. Next, the research methods for data collection are discussed, following a presentation of how the chosen methods were carried out and how the findings were interpreted in the analysis. Lastly, the chapter addresses the quality of the research as well as the objectivity and ethics employed throughout the research process.

Methodological considerations
The purpose of this thesis is to explore how Balanced Scorecard theory is implemented through management accounting tools in the case of L’Oréal, it is therefore
Yin (2009) points out three ideal conditions for a case study; the research question is asked in form of a why or how, there is no control required over the events being studied and the focus is on currently unfolding events. The research question in this thesis is framed as an explorative how-question, while the case of L’Oréal provides a continuously unfolding case study with no behavioural controls necessary. In an ideal world, a case study will be conducted simultaneously in several organisations working under the same conditions, especially when dealing with qualitative data. It is important to be aware of selecting a representative case to provide the basis for generalisations (Scapens 2004). In contrast to positivist research using factual numbers and statistics, an interpretive case study provides analytical generalisation to develop and extend the current theoretical stand point. According to Scapens (2004) either a critical case or an extreme case should be used as a representative. In a critical case the phenomenons being observed are critical event leading to the research question being important part of the organisations further processes. An extreme case is selected to test an acknowledged theory under diverse circumstances. L’Oréal presents as a critical case, where the usage of management accounting is crucial in order to achieve proper implementation of the Balanced Scorecard. L’Oréal was chosen for several reasons. Firstly, as an employee within the company I have easy access to data, individuals and other necessary resources, as well as fundamental knowledge about the organisation. Key Performance Measures (KPI’s) are intensely tracked and supervised in L’Oréal, however the impact and importance of the individual KPI’s are often overlooked or