MEASURING ROMANIAN LARGE FMCG RETAIL CHAINS EFFICIENCY DURING THE PERIOD ECONOMIC CRISIS BETWEEN 2006-2011
MEASURING ROMANIAN LARGE FMCG RETAIL CHAINS EFFICIENCY DURING THE PERIOD ECONOMIC CRISIS BETWEEN 2006-2011

Summary/Abstract: The purpose of this study is to measure Romanian large FMCG retail chains’ efficiency during the period of 2006-2011. The sample contains 27 large retail chains. For the purpose of this analysis, the Data Envelopment Analysis (DEA) method was used. The DEA model includes three variables, namely two inputs (fix assets and the average number of employees) and one output (turnover). The results of the DEA analysis show a medium level of efficiency in the Romanian FMCG market during the period of the economic crisis. The mean score of technical efficiency varied between 0,732 and 0,575. Two retailers were selected as benchmarks: the French hypermarket Carrefour and the German discounter Penny Market. The well performing companies' market penetration and development strategies are briefly discussed. This study seems to be the first one to apply performance measurement by means of DEA in the Romanian large FMCG retail chain during the crisis period.

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