THE EFFECT OF ACTIVITY-BASED MANAGEMENT ON BUSINESS PERFORMANCE: AN IMPLEMENTATION IN AN ALCOHOLIC BEVERAGE BUSINESS

Businesses can improve their performance by managing their activities. While managing the activities requires measuring and managing the performance, improving performance also depends on managing the activities. Balanced scorecard helps the business to measure and manage its performance while activity-based management meets the need of managing activities of it. An implementation has been done in an alcoholic beverage business with the aim of identifying the effect of activity-based management on the business performance. The methods of observation, meeting with managers and employees, and applying to their experiences have been used in the implementation. For measuring and managing the performance, product-based balanced scorecard has been built, and the business performance has been managed by it. Bottling activity of the business has been handled as a process, and the bottle breaking in filling problem identified in the filling activity was reduced by the suggested solution. Furthermore the stopping time stemmed from this problem in the bottling time has also been shortened. According to the product-based balanced scorecard, it is possible to say that the business performance has been improved as a result of implementing activity-based management