Performance Evaluation Of China's Natural Monopoly Enterprises

The traditional economic theory, the electric power, telecom, railways, postal, oil andnatural gas industry belongs to the natural monopoly industry, they have very significantscale economy and strong resistance. These characteristics in these industries in thedecision can only be a enterprise or a few companies, or won’t appear the economies ofscale effect. With the technology progress and economic development, the industry to thespecial natural monopoly is no longer so significant, present a weaker natural monopoly,its entry barriers caused mainly by administrative control. So, most developed countrieshave to the original natural monopoly industry restructuring, good at introducingcompetition mechanism in the industry promotes the enterprise the superior bad discard,improve the enterprises operation efficiency. Although we the reform of natural monopolyindustries time is short, but breaking monopoly and realize the market competition hasbecome a natural monopoly industry development trends. General enterprise will chooseenterprise performance as a test of the enterprise management status indicators, also,enterprise reform effects can also come up from its performance reflected. Of course, theevaluations of the performance have many methods, such as the use of traditional financialindex to evaluate enterprise performance, the balanced scorecard method, etc. Not everyperformance evaluation methods are suitable for natural monopoly enterprises, someperformance evaluation method for easy to control, and some methods and application, andmost complex cost is too high. So, choose fair evaluation of the natural monopolyenterprise performance evaluation method is very important. Only the correct and fairevaluation of the natural monopoly enterprise performance, so as to further reform ofnatural monopoly enterprises provide scientific and reasonable basis for decision-making.This paper use factor analysis and principal component analysis, and many of thecomplex will be a few index synthetic not related to the comprehensive factor, reducemany index of evaluation caused by superposition difficulties, comprehensive andcomplete to reflect the financial performance. At the same time, with China Unicom forinstance this article comprehensive performance evaluation and analysis of the2002-2011quarter for China Unicom’s general performance, revealed the problems of China Unicomin and gave some suggestions for improvement.