Designing an advanced PPE model to measure performance and efficiency of Slovak spa enterprises

Each model for measuring performance and prediction is different as it uses different mathematical approaches and works with different indicators. In the era of rapidly changing economic environment, the standard methods for measuring financial performance and assessing financial health are less adequate. Most authors focus on enhancing the predictive ability of original models by responding appropriately to the existing changed economic environment as the identification, increasing and managing enterprise performance and efficiency represent a key tool of today's competitive struggle. The objective of the paper is to create and then apply in practice a new innovative 3D model (PPE model) evaluating the current financial position of Slovak spa companies (P – positon), their future development prognosis (P – prognosis) as well as their efficiency (E – efficiency). The aim of the paper is to identify and implement traditional key indicators, predictive models and efficiency indicators within each of the model dimensions while respecting sectoral characteristics and financial particularities of Slovak spa enterprises. Creating a PPE model will help to better identify the current financial position of the sampled enterprises and, in this way, it will be able to reveal the causes hindering the development of their financial performance to a more accurate extent

Categorization of the EU Member States in the Context of Selected Multicriteria International Indices Using Cluster Analysis

The main aim of the paper was to analyse the economic and social development of the European Union (EU) member states (28 countries) on the basis of selected five multicriteria indices (the Global Competitiveness Index, the Economic Freedom Index, the Global Innovation Index, the Corruption Perceptions Index, the Human Development Index). To perform settled aim, a multidimensional classification of EU countries for years 2011 and 2018 using cluster analysis was realized. The purpose of the analysis was to categorize the individual EU countries into clusters and to find out to what extent the position of EU member states has changed in terms of selected international indices over the analysed period. Based on the findings, it is arguable that a major part of the EU member states cluster into the same groups based on the selected indices assessment, regardless of the time period. However, six countries (Czech Republic, Estonia, Germany, Latvia, Lithuania, and United Kingdom) improved their position during the period under review and ranked into the cluster of more prosperous countries in 2018. The rate of change (improvement) was quantified at the level of 21.43%. Based on the results, Latvia and Lithuania were the most similar countries in terms of economic prosperity (Euclidean distance reached the level of 3.08), while the least similar countries were Greece and Sweden (Euclidean distance reached the level of 70.8). Declining Euclidean distances indicate that economic disparities of the individual EU countries have decreased in the period under review. This paper aims at developing the research to find out how, besides hierarchy, we can analyse the EU member states from the perspective of various multicriteria indices. The four proposed clusters could be used as a starting point for future policy reforms, pointing to the weaknesses of various countries

Analysis of modern methods for increasing and managing the financial prosperity of businesses in the context of performance: a case study of the tourism sector in Slovakia

Research background: In the context of constantly changing business environment, the financial sector is focusing on new trends in financial management systems. Nowadays, there is a need to achieve long-term financial growth, so financial managers try to develop new models for managing and improving the financial performance of businesses in economic practice. Purpose of the article: This article aims to determine the financial performance of travel agencies by applying modern business performance evaluation methods in order to create a performance portfolio (ranking) for the years 2013-2017, subsequently to reveal the concordance rate of order of the selected business entities by comparing applied financial methods in the context of performance benchmarking. The research question is as follows: Does the multidimensional PCA method in the form of the performance portfolio of travel agencies provide similar financial results compared to the EVA indicator? Methods: For measuring the financial performance of businesses, the method of Principal Component Analysis (PCA) and the indicator Economic Value Added (EVA) were chosen. Spearman's rank-order correlation was applied in order to reveal the concordance rate of the analyzed travel agencies. Findings & Value added: The results indicate that by applying the PCA method, 6 key performance factors can be identified. Moreover, the findings revealed that the assessment of travel agencies using the PCA method and EVA indicator did not lead to the same financial results. Individual financial methods identified a different number of strong-performing and inefficient business entities. In this backdrop, we concluded that the business performance measurement based on the PCA method is not a suitable alternative to measuring performance using the EVA indicator

Competitiveness and sustainable growth analysis of the EU countries with the use of Global Indexes' methodology

International audienceThe issue of countries' competitiveness and sustainable economic growth is constantly at the centre of interest and represents the frequent object of research in economic theory as well as economic practice. The multi-criterial approach and the assessment methodologies relating to the global competitiveness have been dynamically adjusted over the recent years to reflect the current globalization trends in the world economy. The main objective of this study is to analyse the objectivity and resulting values' deviations of the Global competitiveness Index (GCI) and World Competitiveness Index (WCI) composite indexes that are currently considered to be the world's most respected and to identify the impact of key factors that affect the countries' competitive positions with a focus on Slovakia. The research study is realized within the group of EU (24) countries for the period 2006 – 2016. The partial objective is to summarize the main starting points of the World Economic Forum (WEF) and Institute for Management Development (IMD) composing these indices, to identify their common features and different approaches that create differences in the results achieved. Then we analyzed the differences between the resulting rankings and the resulting scores of the GCI and WCI rated countries. In the next part, we focused on analyzing the position of Slovakia using the correlation and multiple regression analysis and identifying the interrelationships between individual pillars and the GCI score in order to determine the impact of key factors that influence the competitive position and sustainable growth of Slovakia and improve or worsen its position. Our results highlighted the economic and statistical context of GCI Slovakia development and the impact of the following key pillars and key factors: pillar P1 (P1: Institutions – Public trust in politicians), pillar P3 (P3: Macroeconomic environment – Government debt) and pillar P11 (P11: Business sophistication – Nature of competitive advantage). All three pillars, identified as crucial to the development of the overall Slovakias' GCI scores, occupy unflattering positions in the comparison of pillar rankings. Therefore, we conclude that it is necessary to clarify the causes of their development and eliminate these identified factors as soon as possible. The results can be seen as beneficial to countries' economic policies in increasing global competitiveness

The Impact of Monetary Policies on the Sustainable Economic and Financial Development in the Euro Area Countries

One of the responses of the monetary policies of central banks to the sustainable development on financial markets, which also affected other markets and economic growth, is the role of non-standard monetary policies, referred to as quantitative easing in the form of Asset Purchase Programme. In this paper, the following main research problem was addressed: How can the Asset Purchase Programme help the European Central Bank fulfill its mandate of supervising the financial stability and financial development? Based on this, we formulated the main objective: to identify the impact of monetary policies on the dynamics of financial markets development, labor markets, and the markets for goods and services. As part of the applied methodology, the impact of the quantitative easing on the government bond yields curve was based on an indirect assessment using the seemingly unrelated regression model, considering the use of parameters from the functional benchmark form. Through the vector error correction model, another additional impact of the application of the monetary policy mechanisms on selected indicators of the considered markets was identified. The relationship between financial markets and economic growth was determined on the basis of the two-stage least square model using endogeneity control instruments. Applying the changes identified by the above models allowed us to determine the expected change in the rate of growth of the aggregate output of the euro area countries. Based on our results, we found out that Asset Purchase Programme had an impact on the growth of government bond yields issued by euro area countries, on lowering the risk rate on corporate bond markets, and increasing the nominal value of shares. In addition, growth in inflation and a decline in interest rates were affected. Finally, the European Central Bank (ECB)’s non-standard monetary policies have positively affected and stimulated the labor market and development in goods and services markets, referred to the sustainable financial development

The evaluation of competitive position of EU-28 economies with using global multi-criteria indices

Research background: Under the current conditions of increasing competitiveness and interdependence, national economies are more influenced by the global business environment and its development. Constantly changing economic, social, political aspects, and many other factors, cause the differences in the global competitiveness of economies, so the economies are forced to analyze their competitive level more complexly. Despite that, there is a lack of research studies analyzing the international competitiveness of EU-28 economies from the point of view various multi-criteria indices. Purpose of the article: The paper investigates the relations between the Global Competitiveness Index (GCI) and other selected multi-criteria indices, namely the Global Innovation Index (GII), the Doing Business Index (DBI), the Economic Freedom Index (EFI) and the Corruption Perceptions Index (CPI) in the case of EU?28 economies. Methods: In order to investigate the relations between the global competitiveness and selected multi-criteria indices affecting the EU?28 economies, the multiple linear regression analyses were applied. The multiple regression model was quantified for every single year, as well as, the regression model using the average score of all analyzed indices. The secondary data concerning the scores of individual indices were collected based on annually published online reports over the period of 2014?2018. Findings & Value added: The research confirmed that there is a statistically significant dependence between the global competitiveness, corruption and the level of innovation potential within the EU?28 economies. Besides, we identified the worst results in the context of competitiveness evaluation especially in the area of corruption and innovation activities. In this regard, the issue of insufficient innovation development and inappropriate corruption perception is considered to be key determinants influencing the assessment of the global competitiveness of the EU?28 member states. In our opinion, to improve the competitiveness of these countries, targeted activities should be implemented in the frame of national competitive strategies, programs, and policies

TQM jako narzędzie konkurencyjne w przedsiębiorstwach na całym świecie

This research paper examines the issue of Total Quality Management (TQM) as a dynamic tool for managing and improving the performance and competitiveness of enterprises. The empirical analysis was focused on the current state of using this concept as well as identifying barriers that prevent its use in practice. In order to verify the hypotheses, defined in accordance to the literature review research, the appropriate research methods were applied. Statistical verification revealed that the size of the enterprise has the statistically significant impact on the use of the TQM and the lack of qualified workforce and financial resources are among the most noticeable barriers to the use of the TQM in managerial practice. Concerning the managerial implications, the suitable model of relationships between human resources and the TQM is presented, with a novelty of the creation a comprehensive digital business model according the challenges of Industry 4.0. The paper also includes research studies, which confirm its relatively frequent use mainly in developed economies. We found that the TQM concept is used by more than 25% of industrial enterprises in Slovakia, and referred to the sustainable growth as well as competitiveness within the market environment worldwide.Niniejszy artykuł badawczy analizuje kwestię Total Quality Management (TQM) jako dynamicznego narzędzia do zarządzania i poprawy wydajności i konkurencyjności przedsiębiorstw. Analiza empiryczna koncentrowała się na obecnym stanie stosowania tej koncepcji, a także na identyfikacji barier, które uniemożliwiają jej zastosowanie w praktyce. Aby zweryfikować hipotezy zdefiniowane zgodnie z przeglądem literatury, zastosowano odpowiednie metody badawcze. Weryfikacja statystyczna wykazała, że wielkość przedsiębiorstwa ma statystycznie istotny wpływ na korzystanie z TQM, a brak wykwalifikowanej siły roboczej i zasobów finansowych jest jedną z najbardziej zauważalnych barier w korzystaniu z TQM w praktyce menedżerskiej. Jeśli chodzi o implikacje zarządcze, przedstawiono odpowiedni model relacji między zasobami ludzkimi a TQM, z nowością stworzenia kompleksowego cyfrowego modelu biznesowego zgodnego z wyzwaniami Przemysłu .0. Artykuł zawiera także badania, które potwierdzają jego stosunkowo częste stosowanie głównie w gospodarkach rozwiniętych. Badanie potwierdziło, że koncepcja TQM jest stosowana przez ponad 2 % przedsiębiorstw przemysłowych na Słowacji i odnosi się do zrównoważonego wzrostu, a także konkurencyjności w otoczeniu rynkowym na całym świecie