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The Applicability of Performance Benchmarking in the Maritime Transportation Industry

Ho Degerman, Angelina LU and Larikova, Jelena LU (2012) BUSN89 20121
Department of Business Administration
Abstract
The primary purpose of this study is to determine the applicability of performance benchmarking of the Nordic companies in the maritime industry. The developments in world seaborne trade mirrored the performance of the wider economy, with the maritime industry as a whole stands and falls with worldwide macroeconomic conditions. We argue that with firm specificity, every firm is exposed to different exposures with different magnitudes. In addition, reliance on the reported accounting data before the 'filtering' process is misleading as it incorporates macroeconomic influences which are beyond the management’s control and thus, does not represent the true performance of the firm. This makes benchmarking on its own less insightful and... (More)
The primary purpose of this study is to determine the applicability of performance benchmarking of the Nordic companies in the maritime industry. The developments in world seaborne trade mirrored the performance of the wider economy, with the maritime industry as a whole stands and falls with worldwide macroeconomic conditions. We argue that with firm specificity, every firm is exposed to different exposures with different magnitudes. In addition, reliance on the reported accounting data before the 'filtering' process is misleading as it incorporates macroeconomic influences which are beyond the management’s control and thus, does not represent the true performance of the firm. This makes benchmarking on its own less insightful and inapplicable as a basis of peer comparison unless it is used in conjunction with MUST analysis which has the capability of filtering out the macroeconomic disturbances to achieve the underlying true performance of the firm. (Less)
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author
Ho Degerman, Angelina LU and Larikova, Jelena LU
supervisor
organization
course
BUSN89 20121
year
type
H1 - Master's Degree (One Year)
subject
keywords
Maritime, Performance Benchmark, Performance Analysis, Performance Measurement, Macroeconomic Uncertainty, MUST analysis
language
English
id
2837269
date added to LUP
2012-06-26 14:41:43
date last changed
2012-06-26 14:41:43
@misc{2837269,
  abstract     = {The primary purpose of this study is to determine the applicability of performance benchmarking of the Nordic companies in the maritime industry. The developments in world seaborne trade mirrored the performance of the wider economy, with the maritime industry as a whole stands and falls with worldwide macroeconomic conditions. We argue that with firm specificity, every firm is exposed to different exposures with different magnitudes. In addition, reliance on the reported accounting data before the 'filtering' process is misleading as it incorporates macroeconomic influences which are beyond the management’s control and thus, does not represent the true performance of the firm. This makes benchmarking on its own less insightful and inapplicable as a basis of peer comparison unless it is used in conjunction with MUST analysis which has the capability of filtering out the macroeconomic disturbances to achieve the underlying true performance of the firm.},
  author       = {Ho Degerman, Angelina and Larikova, Jelena},
  keyword      = {Maritime,Performance Benchmark,Performance Analysis,Performance Measurement,Macroeconomic Uncertainty,MUST analysis},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Applicability of Performance Benchmarking in the Maritime Transportation Industry},
  year         = {2012},
}