Efficiency Appraisal Of Railway Diversified Business Based On DEA Method

Railway diversified business was established in the year 1984, and after over twenty years' development, it has had a large scale and turnover with 13 key fields. It is very important to analyze its business efficiency scientifically in order to allocate already-owned resources and develop railway diversified business.This dissertation analyzes railway diversified business efficiency from the year 2003 to 2007 based on DEA method. 13 key fields are classified the as four categories according to efficiency assessment values, and the reasons of different efficiency are studied. Study results are as follows: (1) Railway diversified business efficiency during these five years is high and has been on a rise at a steady rate. This is related to China's good economic atmosphere and railway diversified business reforms. (2) Leading fields including transportation, retail and wholesale are of highest business efficiency because they are closely related to railway transport turnover increases. Superior fields including transport assisting services, rental and service business, warehouse storage and construction are of relatively high business efficiency because they make use of railway infrastructure and logistic facilities and with an increase of freight and passenger transport by rail, these fields do a good business. Fields including real estate, manufacture and residential and other services are of low efficiency because of lack of good management and specialized talents. Backward fields including mining, culture, sports and entertainment, agriculture and forestry, accommodation are of the lowest efficiency because these fields are at a disadvantage of railway diversified business and have no competitive advantage. (3) Further development of railway diversified business should follow the basic idea of railway based and competitive advantage. All 13 fields should follow the principle that some are determined to be key fields, some can be developed and some should not be operated. Concentrate on most resources to develop the highest efficient fields, further operate superior fields, guide and foster low efficient fields and bow out of the backward fields.