Research On Performance Evaluation Of The Retail Business Listed Companies

Since December11,2004,geographical, equity and quantity restrictions on foreign investors have been removed, which brought in more competitors to domestic retail enterprises. Since Reform and opening up took place in our country, the retail industry has seen a steady increase, enterprises has undergone a phase of getting bigger and more diversified.But problems still remained, especially when compared with their foreign counterparts; these include lagginglaws and regulations, unreasonable network layout, inefficiency of traditional business model and lack of harmony between; companies invested most resources into scale expansion but undervalued the importance of innovation, core competitiveness and enterprise social responsibility and corporate image.Low efficiency in circulation and operation and bottlenecks in the development of small and medium-sized enterprises have also raised a lot of concern among analysts. During recent years, operating costs in this industry has been soared, cutting profit margin dramatically.Domestic enterprises were beaten by international giants such as Wal-Mart and Carrefour in operating results. If this situation keeps getting worse, foreign retail enterprises may dominate in the market, which may end up damaging our country’s economic security in some extreme cases.Because of this, we should make an objective evaluation about domestic retail enterprises’operating results, so to find the weak points in their course of business, hoping explicit countermeasures and suggestions may help them to find a way to future growth.This essay used Factor Analysis as the main analytical methods, putting various indices into evaluation system and abstract several factors to indicate most others, weight these indicators objectively to get a comprehensive score for companies and use it to analyze operational performance. Afurther analysis was conducted after a cluster analysis of scores.The main content of this paper include the following: The first chapter,"Introduction", revealed the background and significance of this study based on current situation of China’s retail business and put forward theresearch ideas of this studyand innovation points. Aresearchof domestic and foreignsurveys onretail enterprises operating results assessment and on China’s retail business performance has also been conducted.Chapter two "theoretical basisof business performance evaluation ", presents basic concepts and general ideas of corporate operational performance evaluation.Chapter3"China’s listed retail business performance evaluation research design and methodology",explains samples and variables, as well as research methods adopted in this essay. According to Industry classification of the China Securities Regulatory Commission, A-share listed retail enterprises of the Shanghai and Shenzhen on December31,2009listed were selected. After excluding enterpriseswith incomplete data,51retail companies were used as the sample of this study, and their2010annual reports were used as relevant data source. Combining the basic rules of variable index selection and the characteristics of domestic retail enterprises,8indices were used in this study. The meaning, models, and basic procedures of Factor analysis and meaning, principles and general procedures of Cluster analysis were also introduced in this chapter.Chapter4"China’s listed retail business performance evaluation process’", presents the whole process of this empirical analysis and implications and suggestions according to results. Factor analysis and cluster analysis are both used in this analytical process.Chapter5"Revelations and policy recommendations of China’s listed retail business performance evaluation results", made a further probe of the output, and end with objective policy recommendations.