Aisya Nurasari Handyanti 008201400006

Ilma Latansa - 008201400043

BALANCE SCORECARD - STRATEGIC MANAGEMENT ASSIGNMENT

The Balanced Scorecard was developed in the early 1990s by two guys at the Harvard
Business School: Robert Kaplan and David Norton. The key problem that Kaplan and
Norton identified in the business of the day was that many companies tended to
manage their businesses based solely on financial measures. While that may have
worked well in the past, the pace of business in todays world requires more
comprehensive measures. Though financial measures are necessary, they can only
report what has happened in the past where a business has been, but not where it is
headed. Its like driving a car by looking in the rearview mirror. To provide a
management system that was better at dealing with todays business pace and to
provide business managers with the information they need to make better decisions,
Kaplan and Norton developed the Balanced Scorecard.
Balanced Scorecard is actually a management system not a measurement system.
Yes it is true, measurement is a key aspect of the Balanced Scorecard, but it is much
more than just measurement; it is a means to setting and achieving the strategic goals
and objectives for your organization. In short, its a management system that enables
your organization to set, track, and achieve its key business strategies and
objectives. The balanced scorecard approach allows managers to more easily identify
the aspects of the business they need to monitor more closely, and highlight the areas
that need improvement. By taking a holistic approach, the balanced scorecard system
also lets managers monitor what company-wide objectives have been met, and what is
needed to achieve strategic goals. Managers waste less time monitoring and have an
increased understanding of the steps needed to achieve their goals.
There are four aspects to track where is our business at and how well are the
organizations doing; Each initiatives in perspective is related and supported to achieve
the companys goal, which is to produce operational and financial performance that is
optimal for the sake of fulfilling stakeholders trust.
o Customer: measures your customers satisfaction and their performance
requirements, for your organization and what it delivers, whether its products or
services.
o Financial: tracks your financial requirements and performance.

o Internal Business Process: measures your critical-to-customer process

requirements and measures.
 o Learning and Growth: focuses on how you educate your employees, how you
gain and capture your knowledge, and how you use it to maintain a competitive
edge within your markets.
In implementing the Balanced Scorecard system, company-wide should be the key to
the successful realization of the strategic plan/vision. A Balanced Scorecard should
result in:
o Improved processes

o Motivated/educated employees

o Enhanced information systems

o Monitored progress

o Greater customer satisfaction

o Increased financial usage

I. Company Profile
Garuda Indonesia officially became a state company in 1950. At that time, the
company has 38 planes consisting of 22 types DC3, 8 Catalina sea planes
and eight aircraft types Convair 240. The company's fleet continues to grow,
until finally in 1956, for the first time Garuda Indonesia passenger-carrying
pilgrims to Mecca. Garuda Indonesia started his flying trip to Europe in 1965
with final destination Amsterdam.

Garuda Indonesia sat operate 89 aircraft consisting of 3 Boeing 747-400, six

Airbus 330-300 aircraft, five Airbus 330-200 aircraft and 33 B737-Classic
(series 300, 400, 500) and 42 B737-800NG plane. These aircraft fleet serves
36 domestic routes with an average of 733 times per-week and 26
international routes, with 158 times per week, and 12.5 million passengers. In
undergoing operations, the company is supported by 5745 employees spread
across its headquarters and branch offices.

II. Balance Scorecard of PT. Garuda Indonesia

Leg Strategy Brief Strategy Initiative

Financial Sustainability - - adding new Keep up a teamwork and
profit growth route collaboration with other airlines as
- - elevate the a partner and apply the
 image of the standards, also adding new
brand competence pilots / crew.

Customer Excellent and Implementing Enhance time performance. The

consistent in Garuda level of flight salvation and
products and Experience conveniency or adding new
services facilities such as audio-video on
demand (AvoD).
Internal Revenue Enhance the Elevate efficiency on fuel using,
Business enhancement operational decrease the burden of airplanes
Process efficiency treatment.
Product quality Elevate the Increasing the capacity of the
enhancement freight services cargo and do warehouse
(cargo) rejuvenation also drop center in
Jakarta and Cikarang areas.
Excellence Armada Alteration of an obsolence
operation process modernization armada with new ones also
adding new armada.
Learning & Enhance better Transforming Justify the selection and
Growth work quality culture and placement of employees,
competencies of assessing the employees
all human performance. Training, coaching,
resources in and programs development.
Garuda.

Each initiatives in perspective is related and supported to achieve the companys goal,
which is to produce operational and financial performance that is optimal for the sake of
fulfilling stakeholders trust.

III. Company Profile

In its 46th year of service, Dallas-based Southwest Airlines Co. (NYSE: LUV)
continues to differentiate itself from other air carriers with exemplary
Customer Service delivered by more than 53,000 Employees to more than
100 million Customers annually. Southwest operates more than 3,900
departures a day during peak travel season across a network of 99
destinations in the United States and eight additional countries with additional
Cuba service to Havana, Cuba, beginning December 12, 2016, and Santa
Clara beginning December 15, 2016.
 Southwest Airlines is the nation's largest carrier in terms of originating
domestic passengers boarded. The Company operates the largest fleet of
Boeing aircraft in the world, the majority of which are equipped with satellite-
based WiFi providing gate-to-gate connectivity. That connectivity enables
Customers to use their personal devices to view video on-demand movies
and television shows, as well as nearly 20 channels of free, live TV
compliments of our valued Partners. A new logo, aircraft livery, interior design
featuring a new seat and Flight Attendant galley, Employee-designed
uniforms, and an updated airport experience all showcase the dedication of
Southwest Employees who connect Customers with whats important in their
lives.

IV. Balance Scorecard of Southwest Airlines.

V. Comparison
First of all, Garuda Indonesia used its balance scorecard not involving their
targets. The comparison we have here between Garuda Indonesia and
Southwest Airlines is that in the world of commercial flights, Southwest
Airlines is known to have a special characteristic, namely cheap airfares. To
be able to offer services such low cost, there are a number of factors that
determine, but the most visible is, during the flight does not provide a full
meal, there is only peanuts and snacks. Additionally Southwest Airlines only
operate one type of aircraft, the Boeing 737. This policy allows the company
to cut the cost of care and training of the crew, as well as providing reliable
services. The choice will obviously been taken into account, and it was very
well received by customers. In fact, consumer commercial aircraft is more like
the core offer of the airline, which is the cheap fares, low timely and
satisfactory service. Which in contrast, Garuda Indonesia offered high quality
services with excellence food and beverages, cabin staff services, Wifi
connection and inflight entertainment. For Garuda Indonesia, services is
number one instead of that the fare which is not too costly but still not
affordable for some people in Indonesia. With the same objectives in every
legs/perspective, Southwest Airlines preferably to offer the time management
quality other than services, which in contrast, Garuda Indonesia offers the
best services in every airlines in Indonesia rather than considering the cost of
the tickets.