The Role of the Balanced Score Card in Evaluating the Strategic Performance of Economic Units

Abstract

This research aims to study the role of the balanced scorecard technique in evaluating the strategic performance of economic units by reducing production costs and improving the quality of products, enabling them to compete with products offered in the market. To achieve the research objective, the Hillah textile factory, through one of its factories, the Qadifa and Babylon Sewing Factory, was selected as a sample for the research to examine the feasibility of applying the technology proposed in the research. In order to obtain the necessary data and information about the men's business suit product, the researchers made several visits to the factory, the research sample, in addition to interviewing officials and workers in the factory. The researcher also conducted a number of field trips to the markets to meet with agents who deal in men's business suits to learn about the types of competing products and their prices. The accounting records and cost reports of the factory (the research sample) were also reviewed to implement the balanced scorecard technique. The researcher's findings demonstrate that the balanced scorecard plays an effective role in evaluating strategic performance and enhances the ability of the laboratory product (the research sample) to compete with other products in an environment characterized by high prices of raw materials used in the manufacture of laboratory products, which increases the cost of the final products. Furthermore, the application of this technology provides the research community with new, advanced methods for analyzing the cost of its products, thus improving their quality and enabling them to manage their available resources in a more scientific and efficient manner.