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The Evaluation of the Business Operation Performance by Applying Grey Relational Analysis

Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 297)

Abstract

The effect of the business operation performance has a great influence on the growth and development of a corporation; therefore, the purpose of measuring the business operation performance is to understand whether the application and allocation of the resources in a corporation have reach the optimality and the completeness progress of goals, and these all provide the management with the essential information as valuable references for possible correction plans or policy decisions with a view to enhancing business competitiveness. Furthermore, investors are able to develop judgment of investment according to the results of evaluating the business operation performance. Takes 9 tourist hotels in Taiwan as study objects, collect related financial data in 2012 from Taiwan Stock Exchange (TWSE) and designate 6 financial ratios—Current Ratio, Fixed assets turnover ratio, Debt Ratio, Return on Equity (ROE), Growth Rate of Operating Income and Account Receivable Turnover Ratio—as evaluation indicators. By applying the method of Grey Relational Analysis, we obtained the grades of performance evaluation of the 9 objects and then arranged them in order. Afterwards, according to the ranking and through comparison among the evaluation results of the 9 corporations, we found the best corporate as a “Benchmark”, which is to be a model for other companies in the same industry and to serve as good reference for general inventors when making investment decisions.

Keywords

Performance Evaluation Grey Relational Analysis Benchmarking Financial Indicators 

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Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.University of Science and Technology of ChinaHefeiChina
  2. 2.Dept. of International BusinessNational Kaohsiung University of Applied SciencesKaohsiung CityTaiwan

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