Integrating balanced scorecard and integer goal programming to enhance capital budgeting: A proposed quantitative model “Applied Case”

Abstract

Due to the transformations and changes that took place in the contemporary business environment during the last decade of the last century and the beginning of the current one, the success and survival of any organization became depending on its ability in identifying the needs and desires of its customers, and its success in fulfilling these needs and desires in a more effective and efficient way than its competitors. Thus, the attention and focus of the contemporary organization changed to the production of what they can sell –market orientation- rather than focusing on selling what they produce. Market orientation strategy became one of the new management philosophy pillars for the contemporary business organizations. As a result of transformation and changes in the contemporary business environment, the organizations found an urgent need to have techniques and tools to achieve growth and prosperity, or at least maintain its current market share. These tools such as: Activity Based Costing (ABC), Featured Based Costing (ABC II), Time Driven-Activity Based Costing (TD-ABC), Value Chain, Supply Chain, Value Engineer, Kaizen, Target Costing, Life Cycle Costing, Balanced Scorecard (BSC),….etc.