Borealis

Robert S. Kaplan; Bjorn N. Jorgensen

Case | HBS Case Collection | December 2001 (Revised February 2008)

Borealis

by Robert S. Kaplan and Bjorn N. Jorgensen

Abstract

When Borealis, a European producer of plastics, used a traditional, time-consuming budgeting process, the budget was quickly out of date in a competitive environment characterized by continually changing input and output prices and dynamic market conditions. This case describes the process that led Borealis to replace its budgets with four targeted management tools: rolling financial forecasts, Balanced Scorecard, activity based costing, and investment management. It also discusses the process of implementing the new measurement and control systems.

Keywords: Activity Based Costing and Management; Budgets and Budgeting; Forecasting and Prediction; Investment; Governance Controls; Balanced Scorecard; Management Systems; Manufacturing Industry; Europe;

Format: Print

17 pages

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Citation:

Kaplan, Robert S., and Bjorn N. Jorgensen. "Borealis." Harvard Business School Case 102-048, December 2001. (Revised February 2008.)

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