The Research On Company C Implementing EVA Evaluation System

Operation performance evaluation is not only a difficulty in company’s management,but also a hot topic in management theory research. The establishment and promotion ofreasonable and appropriate scientific evaluation system will help to guild company’soperation activities, improve company’s core competitiveness, and finally find out thedifference.This thesis is based on a large domestic appliance Company C, investigating thefeasibility and meanings of the establishment of EVA evaluation system. With theincreasingly fierce competition in appliance industry, how to properly direct theenterprise to a fast and healthy development and to adapt to a new organizationalstructure and development trend is a difficulty confronted by Company C at present.With more than50years of development, Company C has transformed itself intoan integrated multinational group combined with R&D and manufacturing of militaryindustry, consumer electronics, and core components. Currently, Company C consists ofmultimedia, home appliances, military, parts and components, emerging, overseas,service and real estate industry group, and is forwarding towards content and serviceprovider of information and home appliance with global competitiveness. Influenced bythe change of company’s organizational structure, as well as the continuousimprovement requirement on management, the original performance managementsystem no longer satisfies Company C’s management requirement, and furthermore, thetraditional concept of accounting and profits supremacy shall be updated. Company Cneeds to set up a financial strategic management concept with value management as itscore, and establish an EVA-oriented evaluation system, reflecting the concept of"profitable enterprise is probably not valuable, but valuable enterprise is certainprofitable" and highlighting the guidance function of cost of capital and the rate ofreturn on capital.Based on current situation and taking project team as a starting point, this research will analyze Company C’s current situation through combination of theory andPractice and reference of theoretical knowledge in documented files and data. Theimplementation effect of EVA project is observed by data analysis and visitinvestigation, every key factor is analyzed, and the overall system is graduallycompleted. An EVA evaluation system which is appropriate for Company C is tried tobe built up.