The Corporate Performance Measurement and Its Importance for the Pricing in a Transport Enterprise

Ďurišová Ďurišová,Tokarčíková Tokarčíková,Virlanuta Virlanuta,Chodasová Chodasová

doi:10.3390/su11216164

Ďurišová Ďurišová, Tokarčíková Tokarčíková + Show 2 more

Open Access

https://doi.org/10.3390/su11216164

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Abstract

Due to the specificity of transport services that are being performed with an unambiguous impact on the environment and society, all activities of transport enterprises oriented towards the achievement of the sustainability goals are more visible than in the case of other enterprises. Consequently, the growing need for sustainability increases not only the costs of individual transport services but also the total costs of a transport enterprise. Indisputably, the costs affect the pricing, which leads to the final market prices. On the one hand, they can increase the prices, but on the other hand, they decrease the enterprise’s competitiveness and its success in the market at the same time. Even though the cost-based pricing is essential, it is not sufficient under these circumstances. Based on the objectives stated above, the primary aim of this paper is to emphasize that the creation of prices in a transport enterprise must consider the global aspects of the enterprise’s performance as a prerequisite for its competitiveness. The results include proposing several variants of corporate performance measurement that are relevant and supported by a literature review of the current knowledge on the topic, an analysis of internal documents from a particular freight-transport enterprise, and structured interviews with the managers. Subsequently, the model proposed can be used by managers of transport enterprises in their decision-making process.

Highlights

A sustainable transport system with good economic performance is the lifeblood of the whole economic system
The solution can be found in the efficient management of a transport enterprises performance measurement, as it has a mutual context with the competitiveness of the enterprise as well as with the pricing affected by the costs considering sustainable transport activities
To find relevant relationships between the costs and the pricing leading to competitiveness and sustainability of the transport enterprise, the following key performance indicators were applied: the Economic Value Added (EVA), Cash Flow Return on Investment (CFROI), Cash Return on Gross Assets (CROGA), and the Return on Net Assets (RONA)

Summary

Introduction

A sustainable transport system with good economic performance is the lifeblood of the whole economic system. To find relevant relationships between the costs and the pricing leading to competitiveness and sustainability of the transport enterprise, the following key performance indicators were applied: the Economic Value Added (EVA), Cash Flow Return on Investment (CFROI), Cash Return on Gross Assets (CROGA), and the Return on Net Assets (RONA). These were chosen for their follow-up usage and for a better understanding of the above-mentioned relationships. The focus is being put on different types of corporate performance measurement in a particular transport enterprise, as these measurements are essential in the competitive market as well as in the process of price creation, tendering, and negotiation

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