Enterprise Performance Evaluation Of A Company In China Based On Gray Relational Model

In the process of implementing the twelfth and thirteenth five-year plans in China,the medicine industry,as one of the many industries,plays an irreplaceable role in the whole system,where the Chinese medicine industry with a pivotal position is one of its six sub-industries.According to a statistical report by the end of 2016,there are more than one-third of Chinese medicine listed companies in medicine industry.However,it is difficult for Chinese medicine listed companies to develop due to the close extinction of many plants and animals for some reasons,the lack of unified standards for the quality certification of Chinese patent medicine and the fierce competition with many powerful foreign companies.In the previous researches and analysis,the social responsibility,research and development investment and merger and acquisition performance of enterprises are mostly taken as the research contents of medical companies,while there are less research on the business performance of Chinese medicine enterprise.Moreover,business performance in enterprise management can help each stakeholder to understand the enterprise as a whole and find their own shortcomings,so as to comprehensively promote the effective and rapid development of the enterprise.Hence,this study takes Chinese medicine listed company as a case,and takes the study of business performance as the emphasis to provide countermeasures for better development of Chinese medicine companies based on the overall situation of these companies and the research results.This study firstly expounds the definition of Chinese medicine enterprise and its business performance,and explores the Development status and existed serious problems of the Chinese medicine enterprise.Then the business performance ofChinese medicine listed companies in 2012 ~ 2016 based on strategic management,stakeholder and principal-agent theories is evaluated.In this study,the evaluation index system is one of the key contents.According to summarizing a large number of relevant literature and studying the existing conditions of Chinese medicine companies,this study selects twelve evaluation indicators of business performance,such as profitability indexes(earnings per share,etc.),operating ability index(inventory turnover,etc.),solvency indexes(quick ratio,etc.)and growth capacity indexes(net profit growth rate,et al).Then the gray relational model is adopted as the quantitative model,to build the whole modeling processes of the business performance evaluation of Chinese medicine listed enterprises,which is composed by the parts of evaluation indicators of business performance,evaluation model,evaluation results and Analysis of evaluation results.Finally,the business performance of Chinese medicine listed enterprises in 2012 ~ 2016 based on the above evaluation indexes is ranked using the gray relational model.Furthermore,an excellent improvement program is analyzed to contribute to the progresses of medicine enterprises on the basis of the evaluation results of business performance and theory discussion.The results show that Chinese medicine listed enterprises with the top five comprehensive score of business performance in 2012 ~ 2016 are Yunnan baiyao,Jiuzhitang,Dong-e-jiao,Renhe pharmaceutical and Tongrentang,respectively,whose grey correlation degree are all above 0.735;and the later five comprehensive score of business performance in 2012 ~ 2016 are Laiyinshengwu,Tailong Yaoye,Yisheng Yaoye,Guofagufen and Zixin Yaoye.In addition,this study finds that these indicators including profit factors,debt paying factors,operating factors and growth factors have a great impact on the comprehensive performance.The order of these four factors from the largest to the smallest are profit factors,operating factors,debt paying factors and growth factors.The business performance of “Jiuzhitang” has been gradually improved from 2012 to 2016.Meanwhile,the results indicate that the level of profit factors determine the level of comprehensive performance of enterprises,the top enterprises generally have good solvency,the operating related indexes can effectively influence the performance evaluation of enterprises and related growth capacity indexes can contribute to the their sustainable progresses.Therefore,this study suggests thatChinese medicine listed enterprises should strengthen international exchange and cooperation,establish its own brand advantages,expand financing channels,improve operational efficiency,enhance enterprise competitiveness and always pursue innovative development.Meanwhile,the government also needs to strengthen the guidance and support forces to promote enterprises to take the road of characteristic development.