Portfolio Analysis Approach and Balanced Scorecard Implementation in the Petrochemical Industry: an Empirical Study

Abstract

This thesis uses the case study approach to present an analysis of the sourcing issues in the petrochemical (polyethylene) industry, introducing the Balanced Scorecard (BSC) logic as a feasible managerial leverage to tackle these issues. To perform this study, the Kraljic Portfolio Matrix logic is discussed, applied and validated by means of statistical regression, highlighting the importance of naphtha sourcing in the production of cable insulators. Subsequently, the framework for BSC implementation is utilized in order to develop a scorecard which assists the company’s cross-functional operation to minimize the impact of naphtha sourcing on the bottom line. Finally, analysis and critique of the techniques used and suggestions for future research are specified.