The Operating Performance Analysis of Regular Chain Stores in Metropolitan Area of Chain Retail Business — Taking Chain Shoe Stores A as an Example
Date Issued
2016
Date
2016
Author(s)
Huang, Shih-Chien
Abstract
The performance evaluation system exceeds the financial performance evaluation indexes in the early stage and regards the strategic dimensions besides finance, providing companies and managers with a performance evaluation tool and measuring the ratees fairly and objectively. In the performance evaluation system, the measured items are adjusted with the changes in the market to achieve the optimizing assessment. However, most of chain retail businesses still use a single financial dimension or performance as their performance evaluation indexes to assess the performance of stores and staff nowadays; it is closely related to the operating conditions of regular chain stores and salary incentives of staff, the comprehensiveness and fairness of assessment lacks, and the reasons of inefficiencies and the improved methods cannot be learned with this way. With the cooperation and assistance of the domestic chain shoe stores A, we obtained the trading information and related data of 2013 and 2014. The chain shoe stores A assess their operating performance in accordance with the net profit of the income statement in individual store to adjust the operating conditions of the regular chain stores. Based on the past management experience of the directors of the business department within the company, the performance status of each store, as well as the recently performance status of the regular chain stores, the future performance objectives are set. Afterwards, according to the compliance rate of performance, the salary incentives of the store staff are determined. Then, after the compliance rate of performance of all stores is sorted, the bonuses of the regular chain stores are sequentially assigned. In this study, among the stores of the chain shoe stores A located in metropolitan area, 15 representative stores were selected to establish a model of comparing and analyzing performance under the assumption of the fixed and dynamic scales in the CCR and BCC mode by the data envelopment analysis (DEA) methods. Thus the relatively effective and ineffective decision-making units (DMUs) were found out, the sources of inefficiency were analyzed, and the relevancies of the existing performance evaluation indexes were compared. The comparison and analysis results show that, among 30 DMUs, there are five DMUs that their ratings of the overall technology efficiency rate significantly exceed those of the performance compliance rate. The common reason is the rent per ping in which the five DMUs put variables is lower, making the overall technology efficiency rate promoted. In addition, in most DMUs, the ratings of the overall technology efficiency rate are negatively correlated with those of the performance compliance rate; for the performance compliance rate, the evaluation indexes are only the performance and subjectively-adjusted performance targets so that obviously no variables are put as the measured items. To solve this problem, in this study, after the comprehensive assessment was made by DEA, inefficiency reasons of each DMU are learned and reference units, difference variables, and recommendations for efficiency improvement were provided.
Subjects
Operating Performance Analysis
Data Envelopment Analysis (DEA)
Regular Chain Store
Chain Retail Business
Type
thesis
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