Research On The Performance Evaluation Of M Group Based On EVA-BSC

Though it has been over ten years since the financial crisis broke out in 2008,its influence persists.During the “Two Sessions” in 2018,some representatives put forward a proposal that “China should focus on high-quality development of the real economy to promote its economy recovery”.It is well known that the household appliances industry is one of the most competitive traditional manufacturing industries in China,as well as one of the few Chinese industries with international competitiveness.However,due to the lack of core creative power,China’s household appliances industry still serves as the world “assembly plant”,and its performance still does not match its status in the market.Therefore,it becomes especially significant to assess the performance of the industry in a correct,effective,and reasonable manner.So far,there is not any unified system for the performance evaluation in the household appliances industry.A lot of research has been done by researchers in the field.Apart from the commonly-used traditional financial indicators,many enterprises have started to adopt EVA(economic value added)or BSC(balanced scorecard)to assess corporate performance.Though the two methods have some advantages,they also have limitations when applied to real cases.The use of a single method cannot guarantee every aspect of a company and cannot meet the need in modern manufacturing and operation.By combining the two methods of EVA and BSC and making the former one serve as the core financial index of BSC,the deficiencies of the two separate methods can be made up for,and enterprises will be more capable of adapting to the increasingly complicated economic environment.This paper first studies the current economic environment,and then summarizes the research status of EVA and BSC at home and abroad to strengthen the theoretical basis and make the system clearer.Second,it systematically analyzes traditional enterprise performance appraisal methods and shows their shortcomings,and then elaborates on the necessity and feasibility of a combination of EVA and BSC.Based on it,the EVA-BSC performance appraisal system for the household appliances industry is established,and the key i ndicators and items are determined.Then,it analyzes the status-quo of the household appliances industry.Based on the annual report of M Group from 2014 to 2018,it applies and verifies the appraisal system just established and makes a comprehensive evaluation of the performance of M Group.The results show that for a household appliances manufacturing company as M Corporation,it must rely on high-quality,accurate,and feasible performance appraisal method to increase its enterprise value,and EVA-BSC appraisal method is just in line with the corporate’ s strategic goals.Finally,it offers some substantial suggestions for M Group in applying this appraisal system into practice.