The Application Of The Balanced Scorecard In White Wine Corporations’Performance Evaluation System

There has been a huge change in companies’operation environment ever since1990s. Nowadays, it is almost impossible for companies to maintain their competitive advantage simply by the combination of technology and tangible assets and produce a large quantity of standardized products. So as to survive in the fierce market competition, companies need to change in accordance with the dynamic environment, to be alert with the change of customers’appetite, and also, to ensure the realization of long-term benefits, companies need to invest more in intangible assets. So, the traditional performance evaluation systems cannot satisfy the needs of such companies because of their ignorance of external circumstances, their over-reliance on financial reports and their lack of relevant information. Under such circumstances, after a study on performance management system of12world leading companies, Kaplan and Norton came up with this new performance evaluation tool, the Balanced Scorecard. It evaluates a company’s performance comprehensively from four different aspects:finance, customer, inner operation course, learning and growing, which are the key performance driving factors of a company. And it realizes the balance between inner management and external environment, the long-term benefits and short-term goal, results and causes. Ever since the Balanced Scorecard is invented, it has been widely used around the world, and it has been proved that it is practical and useful by such companies’practice.The environment of the white wine industry has become fiercely competitive because of the internal industrial structure adjustment and the competition from worldwide famous wine corporations. So, in the purpose of enhance competitiveness of white wine corporations in china, to upgrade the managerial ability is quite crucial. However, most of the white wine companies are still using the traditional performance evaluation systems, and because of their deficiency in connecting the companies’strategies, their failure in evaluate crucial intangible assets, and the results are always unilateral and limited, it is unhealthy to the growth of the companies. So, to improve the white wine corporations’managerial ability and make up for the deficiency of traditional performance evaluation systems, it is vital to bring in the Balanced Scorecard system.This paper is written mainly by combining theory and practice method. In the theory analysis part, to give a deep analysis of the Balanced Scorecard theory and an introduction of its advantages by first introducing the traditional performance evaluation systems and point out their weaknesses. In the case study part, the author will take Huzhu Qingke as an example, and build up a balanced scorecard on the basis of theory in accordance with the industry’s features, the companies characteristics and its strategies. And also, to make the scorecard more practical, the author brings in he Analytic Hierarchy Process to allocate the weight. Finally, with such scorecard, the managerial ability of white corporations will be improved and make them better fit in this fierce market competition.This paper is divided into seven parts. Chapter one is an introduction of this paper’s writing background、the aim of this paper、and the innovations. Chapter two is a literature review on the studies of the Balanced Scorecard made by scholars’from china and other countries. Chapter three is an introduction of the traditional performance evaluation systems. The author also chose three widely used systems to introduce and analysis, and make a summary at the end of this chapter. Chapter four is an introduction on the Balanced Scorecard theory, and while introducing the four aspects, the author will connect the theory with the white wine industry’s features to point out the problems need to be focused. In Chapter five, the author will take Huzhu Qingke white wine corporation as an example, connecting the industry features and the corporation’s inner characteristics on the basis of the Balanced Scorecard theory, and to build up a balanced scorecard which is in accordance with its features. To make up the deficiency of unable to allocate weight of each index, the author brings in the Analytic Hierarchy Process to solve this problem and make the balanced scorecard more practical. The last chapter is a summary of this paper. And also give some suggestions on the future study in this field.