Theoretical Approaches to Assess Efficiency of the Transformation of the Key Business Processes in the Publishing and Printing Activities in the Region
Abstract:The purpose of the paper is the theoretical study and the analysis of the basic methodological approaches to assess the effectiveness of the transformation of key business processes in the PPA (publishing and printing activity) in the region in order to choose the best option. Methodology. The overview of the main assessment methods of the effectiveness of business processes: EVA (Economic value added); ABC (Activity-based costing); Tableau of bord and BSC (Balanced Scorecard) is provided. In order to ensure t… Show more
“…Prosperous businesses tend to employ the EVA methodology less than those in a defensive situation [35]. Under such circumstances and with the help of commercial processes, it adds value, which is, generally speaking, one of the main motivational factors for conducting business [36]. Where EVA is positive, a business has value added, whereas if EVA is negative, it does not.…”
The contribution deals with the economic value added and its influence on credit absorption capacity. The aim was to determine the significance of the difference between the economic value added (EVA) entity and EVA equity indicators on credit absorption by the construction sector in the Czech Republic. The data came from the Albertina database of Bisnode Czech Republic for the period 2012–2018; small and medium-sized enterprises, in particular, were selected. The most important factor for calculating the amount of credit absorption depends on the EVA entity indicator and the weighted average cost of capital. The calculations produced negative values for credit absorption, which reflects an unattractive investment climate for business owners and their creditors. In other words, loans sought by enterprises in the Czech construction sector do not lead to a greater degree of realization of their goals, i.e., an increase in value for shareholders.
“…Prosperous businesses tend to employ the EVA methodology less than those in a defensive situation [35]. Under such circumstances and with the help of commercial processes, it adds value, which is, generally speaking, one of the main motivational factors for conducting business [36]. Where EVA is positive, a business has value added, whereas if EVA is negative, it does not.…”
The contribution deals with the economic value added and its influence on credit absorption capacity. The aim was to determine the significance of the difference between the economic value added (EVA) entity and EVA equity indicators on credit absorption by the construction sector in the Czech Republic. The data came from the Albertina database of Bisnode Czech Republic for the period 2012–2018; small and medium-sized enterprises, in particular, were selected. The most important factor for calculating the amount of credit absorption depends on the EVA entity indicator and the weighted average cost of capital. The calculations produced negative values for credit absorption, which reflects an unattractive investment climate for business owners and their creditors. In other words, loans sought by enterprises in the Czech construction sector do not lead to a greater degree of realization of their goals, i.e., an increase in value for shareholders.
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