OPTIMIZING OPERATIONAL EFFICIENCY:A BALANCED SCORECARD APPROACH IN THE CIRCULAR ECONOMY

This instructional case study engages students in evaluating business performance within a company balancing financial sustainability with its strategic commitment to the circular economy. Students analyze segment profitability, cost allocation, and operational efficiency while assessing financial and non-financial performance metrics. A critical turning point arises when management proposes shutting down an underperforming segment. Students must determine whether this decision is justified by evaluating profitability data, resource allocation, and trade-offs between cost savings and long-term strategic alignment. The case challenges students to apply performance measurement frameworks, refine cost allocation methods, and recommend improvements that support corporate objectives. Additionally, students learn to cascade strategic goals into meaningful KPIs across management levels. By working through these challenges, students enhance their critical thinking, problem-solving, and decision-making skills, preparing them to navigate complex business environments where financial performance, operational efficiency, and strategic priorities must be carefully balanced.