The Comprehensive Evaluation Study On Telecom Operators' Operational Performance

The restructuring of Chinese telecommunication industry in 2008 resulted in a tripartite confrontation in the market, and brought to them new development opportunities as well as challenges. The formation of the new market structure, along with the issuance of 3G license, allows the telecom operators to face a fiercer competition. Based on this background, it is the key issue for telecom operators to achieve the sustainable development by considering how to satisfy the market demands better and respond to the changes timely and swiftly in future competition, as well as to enhance the enterprises'strategic execution force and core competence.As an integral part of the strategic management and performance management, corporate operational performance evaluation plays an vital role in the overall corporate operation and management. The evaluation of telecom operators'operational performance has two benefits:To the internal administrators, the evaluation can help them to find the problems and deficiencies in the processes of management, which are conductive to the continuous development of the enterprise's business performance; To the external stakeholders and potential investors, it can orientate them to make the right decisions.The paper reviews the development of the theory of the operational performance evaluation and compares the current evaluation methods of operational performance evaluation. With a comparison between performance evaluation methods based on financial indicators and which are based on non-financial indicators, the paper decides to target on the view of financial performance evaluation. The paper chooses 21 international telecom operators, which were the 2009 world's top 500 enterprises published by "Fortune", to be the research objects. The paper designs a specific and effective evaluation indicator system and uses factor analysis with fuzzy evaluation method to estimate the operational performance of the 21 telecom operators in 2008. Also, the paper makes a comprehensive analysis and verification which focuses on the evaluation results. Finally, this paper focuses on three telecom incumbents in China and provided valuable management and decision supportive information for both internal and external stakeholders.