Business performance measurement for mechanical engineering and metalworking companies: case of Latvia

Abstract

Business performance depends on the manager’s competence to take adequate decisions. The professional manager’s decision can improve the financial performance and position of the company. Analysis of business performance gives businesses a framework in which can set goals, measure actual performance in comparing with these goals and develop scenario planning to evaluate alternative action. The purpose of this article is to investigate the present performance of companies in the mechanical engineering and metalworking sector, to prepare proposals for management and financial performance improvement in these companies. As a result of the research, the authors have drawn recommendations in order to carry out business performance measurement.

Keywords: Business performance, business activity, financial analysis, mechanical engineering and metalworking sector.

Jel Codes: D220, D240, M110, O14.