Benchmarking

Abstract

This diploma work deals with problems of benchmarking in business practice that is applied to the base company ALSYKO security, Ltd. and six companies selected for this purpose. This work deals concretely with one of the areas of benchmarking - financial management, using financial analysis.

In the first chapter (Introduction) the main object of this diploma work comes out - to assess in what position the base company is found compared with its competitors, to identify the fields of the base company, which vary from other selected companies, and to propose possible arrangements for improvement. The main object is elaborated into the sub-goals, leading to its achievment. Target analysis is a part of the last, seventh chapter (Conclusion).

In the second chapter the theoretical basis of benchmarking and financial analysis is defined. The chapter is divided into several parts. Within the benchmarking it explains what is its principle, its possible use, its functions, targets, aspects, categories and methods. Within financial analysis this chapter focuses on its subject, users, information sources and primary targets and methods of elementar analysis.

The third and fourth chapter contains the basic characteristics of the base company and the companies selected for benchmarking. These chapters present informations about an inception of these firms, their history and current activities.

The fifth chapter focuses on analysis of individual stages of benchmarking. The largest part of this chapter is attended to the stage ”Analysis“ that analyses the indicators of liquidity, activity, profitability, indebtedness and employees, value and bankruptcy models and indicator system Du Pont. Each indicator is first discussed for individual companies in this chapter and subsequently the companies are compared on the basis of concrete indicators.

The sixth chapter interprets the results of benchmarking for the groups of indicators and the whole area of financial management. On the basis of this analysis proposals and recommendations for changes are made to the management of the company ALSYKO security, Ltd.