The Research On The Performance Evaluation System Based On The Characteristics Of Telecom Industry

In the market economy, the performance evaluation of an enterprise is very important, which is a critical premise of understanding the operating conditions of the enterprise. Different users of the financial information concentrate on different parts of the evaluation. Telecom industry is a significant part of internet, which is also a trend-leading industry. However, in our country, serious monopoly exists, and the independent research and development capacity stays at a quite low level, so there is still a great distance away from the international advanced level on the aspects of operating efficiency and finance management. Dr. Peng Group, China’s largest private internet telecom operator, is the fourth largest internet operator, ranking after China Telecom, China Unicom and China Mobile. As a symbolic private internet operator, the Group has attracted much attention to its business rise and subsequent development. Therefore, Dr. Peng Group is chosen to be our subject in this research.Our research starts from the point that there are several limitations of traditional financial analysis system using in modern telecom media industry. We then modify and improve the performance evaluation indicators according to the features of telecom industry, and set up a new performance evaluation system under macro-environment for this industry. Next, typical cases will be introduced, which is to evaluate Dr. Peng Group with the new system, and make further empirical analysis on its performance status. In this research, the methods of document investigation and empirical analysis are mainly adopted in the process of setting up new financial analysis system. In all cases mentioned, Dr. Peng Group’s financial statements from the year 2010 to 2014 are used as data sources to analyze the business performance of the case company.We finally draw the following conclusions according to the research. The using of the new system on Dr. Peng Group demonstrates that the new performance evaluation system of telecom industry is really feasible, and it is more appropriate to telecom industry evaluation. What’s more, the result of the performance evaluation shows that Dr. Peng Group’s overall performance is good, and it is in a transition status to a more sound and promising future. This research makes suggestions to Dr. Peng on effectively raising performance as follows. Firstly, cash flow shall be paid more attention to, in order to make it stay on a stable status. Secondly, constant innovation and diversified service is necessary and it is important for the company to keep pace with the times. Thirdly, the function and catalog of the products both shall be improved. Finally, personnel management and talent introduction shall be further enhanced.The major innovative points of this research are summarized below. On the ground of traditional performance evaluation system, we improve the evaluation indicators based on the features of telecom industry. Meanwhile, influential factors in macro-environment of the industry are taken into consideration, and a more appropriate system is set up. The result will play a guiding role on the performance evaluation analysis in telecom industry, which is good to improve the evaluation work of Chinese telecom enterprises and shorten the gap with developed countries. In that case, the development of telecom industry will be accelerated, and the evaluation work will be more appropriate to current telecom media background.