Scribd
Upload
1K views

Inter-Firm Comparison

This document discusses inter-firm comparison, which allows companies to compare their performance metrics to other similar companies. It outlines the meaning, objectives, advantages, limitations, and trend analysis of inter-firm comparisons. Trend analysis can help predict future performance based on past trends. Calculating trend analysis involves analyzing performance reports, problem areas, long-term predictions, anticipating issues, and evolving circumstances. In conclusion, an effective inter-firm comparison contains key ratios that allow companies to evaluate their performance versus others and understand reasons for differences.

Uploaded by

Mohd sakib hasan qadri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
1K views

Inter-Firm Comparison

This document discusses inter-firm comparison, which allows companies to compare their performance metrics to other similar companies. It outlines the meaning, objectives, advantages, limitations, and trend analysis of inter-firm comparisons. Trend analysis can help predict future performance based on past trends. Calculating trend analysis involves analyzing performance reports, problem areas, long-term predictions, anticipating issues, and evolving circumstances. In conclusion, an effective inter-firm comparison contains key ratios that allow companies to evaluate their performance versus others and understand reasons for differences.

Uploaded by

Mohd sakib hasan qadri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

INTER-FIRM COMPARISON

MEANING & OBJECTIVE


ADVANTAGES
LIMITATIONS
TREND ANALYSIS
BENEFIT OF TREND ANALYSIS
CALCULATION OF TREND ANALYSIS
CONCLUSION
Meaning and Objective

Inter firm comparison is a management technique


which makes it possible for an organization to
compared its performance with that of others in the
same activity.
Inter firm comparison is technique of comparing the
performances of efficiency cot and profit with those of
the other firms engaged in similar line of the business.
Objectives

1. To know one’s weak points in comparison with other firms


and to improve the efficiency in future.
2. To locate the spots of in- economies so that action may be
taken to effect economy by eliminating such sources of in-
economies.
3. To know whether the profits of the firm are adequate and
further to improve profitability position by comparing its
profits with the member firms.
4. To enable the member units to standardise various functions
so that wastage can be minimised.
Advantages

1. Such a comparison gives an overall view of the Industry as a whole to its


members- the present position of the Industry, progress made during the
past and the future of the Industry.
2. It helps a concern in knowing its strength or weaknesses in relation to
others so that remedial measures may be taken.
3. It ensures an unbaised specialized reporting on particular problems or
concern.
4. It develops cost consciousness among members of the Industry.
5. It helps Government in effecting price regulation.
6. It helps to improve the quality of products manufactured and to reduce the
cost of production. It is thus advantageous to the Industry as well as the
Society.
Limitations

1. Top management feels that secrecy will be lost.


2. Middle management is usually not convinced with
the utility of such a comparison.
3. In the absence of suitable cost accounting system,
he figures supplied may not reliable for the purpose
of comparison.
4. Suitable basis of comparison may not be available.
Trend Analysis

Trend analysis is a method in Technical Analysis that helps in


predicting the future movement of that is based on the current
ongoing trend data. Trend analysis gives an idea to the traders based
on what has happened in the past and what will be happening in the
future.
 Purpose
Trend analysis helps you understand how your business has
performed and predict where current business operations and
practices will take you. Done well, it will give you ideas about how
you might change things to move your business in the right direction.
Benefits of Trend Analysis

1. Performance Reports.
2. Identifying Problem Areas.
3. Predicting Long-Term Performance.
4. Anticipating Problems and Making Timely
Preparations.
5. Determining the Effects of Evolving Circumstances.
Calculation of Trend Analysis
Conclusion

Thus from the above discussion made so far, the


following conclusion may be drawn up:
a) An Inter-firm Comparison must contain a number of
management ratios which help the member firm
relating to (a)Their performance in comparison with
the other firm, and (ii) the reason for such difference
Thank you

 Mahek Mulani- 19305C0001


 Tanvi Mayekar- 19305C0002
 Mohd Sakib Hasan Kadri- 19305C0003
 Naresh Elgaboina- 19305C0004
 Yash Koli- 19305C0005
 Omkar Bane- 19305c0006
 Santosh Mane- 19305C0007
 Manisha Tak- 19305C0008

You might also like