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Abstract |
An examination is made of the use of alternative methodologies for assessing corporate performance of industrial sectors within the economy. It is argued that the use of ratio analysis in itself is insufficient for assessing performance, and that more advanced tools like data envelopment analysis should be used to complement ratio analysis. Data envelopment analysis is used to address a series of issues concerning the measurement of corporate performance, which includes an assessment of sales’ efficiency, the effects of economies of scale, benchmarking of a firm’s performance, and the association between industry groups and performance. Data drawn from the grocery industry in the UK are used. |
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