Performance evaluation:

performance of global business

Performance evaluation is defined as “the

periodic review of operation to ensure that
the objectives of the enterprise are being
accomplished”.
 Performance measurement
indicators of a multinational
corporation.
1. Market share.
2. Return on investment(ROI).
3. Return on equity(ROE).
4. Profit margin.
5. Debt-to-equity.
Process of performance
evaluation.
1 • Establish standards of perfromance

2 • Measure actual perfromance

• Analyze performance and compare it

3 with standards
• Construct and implement an action
4 plan

• Review and revise standards

5
Performance evaluation
systems
1. Budget programming system.
2. Management audit system.
3. PERT(program evaluation review
technique).
4. Management information system.
Problem of performance
evaluation of MNCs.
•Transfer pricing.
•Foreign currency.
•Inflation.
•Effects of the environmental factors.
Controlling of international
business.
Control is essentially concerned with
regulating the activities within an
organization so that they are in accord
with expectations established in policies,
plans and practices.
•Control the subunits which are associated with
the organization.
•it is applied, if the organization has been
divided into different departments.
•Overall financial and strategic objectives.
•It is largely based on coordinating the diverse
activities and potential behaviors of individuals
in an organization.
•Strategic level decisions are formed giving
consideration to the various organizational goals
and objectives