Organizational Needs and Priorities
The assessment of the economic efficiency of the company’s activities makes it possible to understand how efficiently the available resources were used to achieve the planned goals. Such an assessment is especially relevant during periods of business expansion and the opening of new directions, as it helps to identify the causes of the decline in the efficiency of the company promptly and take measures to eliminate them.
Description of the Process
The evaluation of the efficiency of the enterprise, due to its complexity, involves the use of private and generalizing indicators. According to particular indicators, it can be determined:
- the effectiveness of the use of each of the company’s resources.
- the effectiveness of the implementation of the new indoor recreation center.
According to the generalizing indicators, it is possible to evaluate:
- the efficiency of all resources and capabilities of the enterprise.
- the effectiveness of the company as a whole regarding the timing of the implementation and opening of the center.
The Information
The basic information for analysis is determined from the company’s financial statements. Therefore, it is necessary to use possible tools to obtain information from all departments involved. All information is provided by the accounting department, which must have an estimate of existing and potential projects. With the help of an analysis of financial indicators, it is possible to conclude the company’s position relative to competitors. Therefore, it is assumed that their analysis will take place in comparison with the historical data of the company itself and its competitors.
Results of the Performance Analysis
Positive or negative performance gaps, new opportunities, or threats may require correction of the annual plan or long-term strategy to re-align them with corporate goals. The task is to distinguish between problems and causes that cannot be ignored and seasonal or short-term fluctuations. The results will be based on the relevance of opening a new indoor recreational center in the current period.
Recommendations
The effectiveness of an organization in a market economy determines its ability to survive financially, attract sources of financing, and their profitable use. It is necessary to pay attention to the relevance of implementing a new project based on the organization’s current capabilities (“How to complete”, 2021). As a result of the implementation of measures, it is possible to increase the efficiency of this enterprise; implementing the developed standards will allow receiving additional income.
Reference
How to complete a performance analysis for your business. (2021). Indeed. Web.