Transworld Auto Parts Part A 22705 Aut 2015
For exclusive use University of Technology Sydney, 2015
9-110-027
REV: AUGUST 8, 2011
V. G. NARAYANAN
LISA BREM
Tra answorrld Auto Partss (A)1
It was an unussually cool an nd foggy mo orning in the summer of 22009, but Ellen Bright, CE
EO of
Transsworld Auto Parts (TAP), was too preo occupied to n notice the weeather. She w was focused o on the two balanced b scorecards beforee her. One, frrom the luxurry division, sshowed stron ng financial reesults; whilee the other, from the econo omy division,, reported dissappointing ffinancial perfformance but good progrress in achiev ving the targeets for its no on-financial g goals. She wo ould soon bee meeting witth the headss of each diviision and wo ondered whatt feedback sh he should giv ve them abou ut their progrress in impleementing theiir strategies. With TAP’s future f on thee line, any m misstep she m made now cou uld be irrepa arable.
TA
AP, a $6.6 billion b subsid diary of a U.S.
U
diversifieed manufactu uring compaany, was a T
Tier 1 manu ufacturer of original o and after-market a parts p for auto omobile prod ducers in the United Statees and abroa ad. TAP had been directly y affected by the downturrn in the auto o industry (ssee TAP’s financial reports in Exhibit 1). Major cusstomers, inclu uding Chrysleer and Generral Motors, weere on the brink of insolv vency, and ev ven robust ca ar makers, su uch as Toyotaa and Honda, were selling g many feweer cars amidsst the global recession. r Th he parent com mpany had hired h Ellen Brright, a veterran in the autto and aerosp pace industriies, in
Octob
ber 2008 to tu urn TAP arou und. The dissmal 2008 ressults and pro ojections for 2009 led Brig ght to conclu ude that she had to make radical cha anges in strattegy and theen implementt the new strrategy flawleessly. She had d no room forr error. If shee were successsful, however, TAP could d take advantaage of opporrtunities in the t troubled auto industrry. She recallled a recent report that outlined botth the
9-110-027
REV: AUGUST 8, 2011
V. G. NARAYANAN
LISA BREM
Tra answorrld Auto Partss (A)1
It was an unussually cool an nd foggy mo orning in the summer of 22009, but Ellen Bright, CE
EO of
Transsworld Auto Parts (TAP), was too preo occupied to n notice the weeather. She w was focused o on the two balanced b scorecards beforee her. One, frrom the luxurry division, sshowed stron ng financial reesults; whilee the other, from the econo omy division,, reported dissappointing ffinancial perfformance but good progrress in achiev ving the targeets for its no on-financial g goals. She wo ould soon bee meeting witth the headss of each diviision and wo ondered whatt feedback sh he should giv ve them abou ut their progrress in impleementing theiir strategies. With TAP’s future f on thee line, any m misstep she m made now cou uld be irrepa arable.
TA
AP, a $6.6 billion b subsid diary of a U.S.
U
diversifieed manufactu uring compaany, was a T
Tier 1 manu ufacturer of original o and after-market a parts p for auto omobile prod ducers in the United Statees and abroa ad. TAP had been directly y affected by the downturrn in the auto o industry (ssee TAP’s financial reports in Exhibit 1). Major cusstomers, inclu uding Chrysleer and Generral Motors, weere on the brink of insolv vency, and ev ven robust ca ar makers, su uch as Toyotaa and Honda, were selling g many feweer cars amidsst the global recession. r Th he parent com mpany had hired h Ellen Brright, a veterran in the autto and aerosp pace industriies, in
Octob
ber 2008 to tu urn TAP arou und. The dissmal 2008 ressults and pro ojections for 2009 led Brig ght to conclu ude that she had to make radical cha anges in strattegy and theen implementt the new strrategy flawleessly. She had d no room forr error. If shee were successsful, however, TAP could d take advantaage of opporrtunities in the t troubled auto industrry. She recallled a recent report that outlined botth the