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Chapter 4 RESULT AND DISCUSSION

4.2 The Second Stage Efficiency Analysis

4.2.1 Descriptive Statistics

Table 4-6: The input, output variables of the Second stage

Source: Summarized by this study

Notes:

M1 = Net Sales, M2 = Operating profit, Y1 = Earning Per Share,

Y2 = Equity Per Share, Y3 =Turnover per share, Y4 =Cash flow per Share, Y5 = Revenue Per person, Y6 = Each business interests

4.2.2 Efficiency Analysis

In the second stage of the analysis efficiency, this study will take output variables of the first stage become the input variables of the second stage and take the Earning per share, Equity per share, Turnover per share, Cash flow per share, Revenue per person and Each business interests is output variables, using DEA-CCR model analysis, the analysis results shown in table 4-7. From table 4-7, in the efficiency evaluation of the second stage, the strength efficiency companies of the relative efficiency value is equal to 1, respectively SFC and CCDC, HTCC, HCD&CC, WGDC, HCC, CDC, FECC and KPCC 9 companies (31,03%), on behalf of the input and output in the current period is the best configuration, in the market have a better efficiency. The remaining 20 companies obviously inefficient units (68,97% ).

From the foregoing, through the second stage of DEA analysis results, the marketing efficiency gets the same efficiency with business efficiency of such 29 Real Estate companies.

Table 4-7: The second stage evaluation model of computing efficiency value

DMU TE PTE SE RTS

RDC 0.248 0.270 0.921 Decreasing

SFC 1 1 1 Constant

DCC 0.564 0.951 0.593 Decreasing

PCC 0.184 0.916 0.201 Decreasing

YSC&DC 0.415 0.589 0.705 Decreasing

CCDC 1 1 1 Constant

HSC 0.465 1 0.465 Decreasing

HTCC 1 1 1 Constant

HPREDC 0.293 0.837 0.350 Decreasing

HCD&CC 1 1 1 Constant

WGDC 1 1 1 Constant

HCC 1 1 1 Constant

CDC 1 1 1 Constant

HHCC 0.369 1 0.369 Decreasing

FCDC 0.397 0.515 0.771 Decreasing

CREDC 0.108 0.109 0.984 Decreasing

GD&CC 0.065 0.169 0.387 Decreasing

KTPC 0.666 1 0.666 Decreasing

HDC 0.287 1 0.287 Decreasing

SBBC 0.130 0.130 0.999 Decreasing

SREDC 0.293 0.307 0.955 Decreasing

NAC&DC 0.441 1 0.441 Decreasing

FECC 1 1 1 Constant

FLDC 0.095 0.353 0.268 Decreasing

KPCC 1 1 1 Constant

HiCC 0.103 0.642 0.160 Decreasing

SDC 0.502 0.505 0.994 Decreasing

CHCC 0.497 1 0.497 Decreasing

KCC 0.177 0.314 0.564 Decreasing

Average 0.528 0.745 0.710 -

Source: Summarized by this study

Because as mentioned before TE= PTE*SE, so in the second stage efficiency analysis, so this study also apply DEA-Solver software with CCR model to calculated TE and BCC model to calculated PTE, to obtain the scale efficiency (SE) and scale reward situation, to learn more about the reasons of the management inefficiency. In the second stage, the result of return to scale increase, constant and decrease sorting by table 4-7. In the table 4-7, 29 real estate companies’ the average pure technical efficiency is 0.745, indicate the market performance is bad, the average scale efficiency is 0.710, this result also mean the market efficiency is not good, the reason from both of pure technology and scale technology. So management department should choose the appropriate inputs combine to create maximum the output effect.

4.2.3 Efficiency Improvement

At the second stage of the DEA analysis, also there are total 20 companies not equal 1, indicates relatively inefficiency, and in the marketing there is still space for improvement. This study also use the slack analysis of the CCR model, against the second stage of each assessment unit of input, output variables and provide improvement advice and the relevant suggestions as the table 4-8:

Table 4-8: The second stage for improvement suggestions of input, output

DMU Score

M1 M2 Y1 Y2 Y3 Y4 Y5 Y6

S-1 S-2 S+1 S+2 S+3 S+4 S+5 S+6

RDC 0.248 0.000 0.000 6.508 42.292 38.158 0.000 6254.858 0.000

SFC 1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

DCC 0.564 0.000 0.000 31.264 903.432 0.000 0.000 0.000 45.633 PCC 0.184 0.000 0.000 0.000 47.375 0.000 0.000 0.000 438.439 YSC&DC 0.415 0.000 0.106 0.000 51.537 0.000 0.000 11807.848 0.000

CCDC 1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

HSC 0.465 0.000 0.000 10.590 304.904 0.000 0.000 0.000 0.000

HTCC 1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

HPREDC 0.293 0.000 0.000 3.406 10.594 20.193 0.000 4297.597 0.000 HCD&CC 1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

WGDC 1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

HCC 1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

CDC 1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 HHCC 0.369 0.000 0.219 0.000 21.877 0.000 0.000 29657.785 0.000 FCDC 0.397 0.000 0.000 4.949 30.112 26.571 0.000 6881.740 0.000 CREDC 0.108 0.000 0.000 3.803 22.904 24.558 0.000 2660.403 0.000 GD&CC 0.065 0.000 0.000 0.150 13.170 0.000 0.000 0.000 377.060 KTPC 0.666 0.000 0.000 61.172 1654.282 38.722 0.000 0.000 0.000 HDC 0.287 0.000 0.000 3.856 5.739 22.059 0.000 11119.606 0.000 SBBC 0.130 0.000 0.000 1.004 0.000 4.528 0.000 1740.256 0.000 SREDC 0.293 0.000 0.000 2.254 15.206 13.457 0.000 0.000 0.000 NAC&DC 0.441 0.000 0.000 0.791 154.337 0.000 0.000 81761.721 3155.728

FECC 1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

FLDC 0.095 0.000 0.000 0.000 5.948 0.000 0.444 1439.058 0.000

KPCC 1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

HiCC 0.103 0.000 0.000 2.849 33.511 21.226 0.000 5681.319 0.000

SDC 0.502 0.000 0.000 1.231 2.811 8.431 0.006 59.812 0.000

CHCC 0.497 0.000 0.742 0.000 133.283 0.000 0.000 78334.600 0.000 KCC 0.177 0.000 0.000 1.731 5.891 13.315 0.117 702.293 0.000

Source: Summarized by this study

Notes:

M1 = Net Sales, M2 = Operating profit, Y1 = Earning Per Share,

Y2 = Equity Per Share, Y3 =Turnover per share, Y4 =Cash flow per Share, Y5 = Revenue Per person, Y6 = Each business interests

Following the table 4-8 and Appendix D we can see, the improvement suggestion of inefficiency DMU as RDC in Net Sales have to decrease 5.162 billion NTD, Operating profit have to decrease 1.415 billion NTD, Earning Per share have increase to 6.508 billion NTD, Equity Per Share increase to 42.292 billion NTD, Revenue per person increase to 6254.858 billion NTD... So can be relatively efficient, and by parity of reasoning. But according to the original data (Appendix B) example as the Cashflow per share of SFC company is minus 1.14 (-1.14) NTD and according to the improvement suggestions of (Appendix D) this company have to increase 1.14 NTD, the DCC company with Cashflow per share is minus 0.68 (-0.68) NTD also increase 0.68 NTD to get efficiency in business.

4.2.4 Sensitivity Analysis

The same with the first stage, at this second sensitivity analysis also removing one variable (input or output) to find out the result with which variables got the important affect to the others, affect to the marketing efficiency of real estate companies. And this study also use the DEA-CCR model as an analyzing tool:

Table 4- 9: The first stage Sensitivity analysis removing variables

DMU CCR M1 M2 Y1 Y2 Y3 Y4 Y5 Y6

RDC 0.248 0.242 0.237 0.248 0.248 0.248 0.230 0.248 0.233

SFC 1 0.867 1 1 1 0.984 1 1 0.867

DCC 0.564 0.407 0.407 0.564 0.564 0.535 0.564 0.406 0.564 PCC 0.184 0.114 0.114 0.183 0.184 0.137 0.184 0.173 0.184 YSC&DC 0.415 0.336 0.415 0.415 0.415 0.407 0.369 0.415 0.350

CCDC 1 1 0.515 1 1 1 0.228 1 1

HSC 0.465 1 0.328 0.465 0.465 0.450 0.465 0.217 0.465

HTCC 1 0.743 0.685 1 1 0.947 1 0.720 1

HPREDC 0.293 0.285 0.281 0.293 0.293 0.293 0.272 0.293 0.275

HCD&CC 1 1 1 1 1 1 1 1 1

WGDC 1 0.963 1 1 1 1 0.770 1 1

HCC 1 1 0.317 1 1 0.439 1 1 1

CDC 1 0.667 1 1 1 1 1 1 1

HHCC 0.369 0.295 0.369 0.369 0.369 0.362 0.353 0.369 0.297 FCDC 0.397 0.392 0.333 0.394 0.397 0.387 0.278 0.384 0.360 CREDC 0.108 0.106 0.104 0.108 0.108 0.108 0.101 0.108 0.103 GD&CC 0.065 0.030 0.026 0.066 0.065 0.035 0.064 0.065 0.066 KTPC 0.666 0.666 0.655 0.628 0.666 0.618 0.609 0.667 0.628 HDC 0.287 0.279 0.262 0.287 0.287 0.287 0.222 0.287 0.258 SBBC 0.130 0.128 0.108 0.131 0.130 0.131 0.085 0.131 0.116 SREDC 0.293 0.293 0.271 0.296 0.293 0.296 0.255 0.296 0.283 NAC&DC 0.441 0.026 0.111 0.441 0.441 0.034 0.441 0.441 0.441

FECC 1 0.951 1 1 1 1 1 1 0.949

FLDC 0.095 0.087 0.094 0.095 0.095 0.093 0.095 0.095 0.087

KPCC 1 1 1 1 1 1 1 1 1

HiCC 0.103 0.100 0.099 0.103 0.103 0.103 0.098 0.103 0.097

SDC 0.502 0.500 0.501 0.502 0.502 0.502 0.502 0.502 0.500 CHCC 0.497 0.327 0.497 0.496 0.497 0.489 0.470 0.497 0.339 KCC 0.177 0.171 0.175 0.177 0.177 0.177 0.177 0.177 0.171 Average 0.528 0.482 0.445 0.530 0.528 0.489 0.480 0.504 0.508

N.E 9 5 6 9 9 6 7 8 7

Source: Summarized by this study

Notes:

M1 = Net Sales, M2 = Operating profit, Y1 = Earning Per Share,

Y2 = Equity Per Share, Y3 =Turnover per share, Y4 =Cash flow per Share, Y5 = Revenue Per person, Y6 = Each business interests

N.E = Number of efficiency

The largest change for the average value (15.72%) happens when the input operating profit has been removed from list of variables. And indicate this variable is most important factor that affect to marketing efficiency at the second stage. The Cash flow Per Share variable is the second factor makes a big affect to efficiency (9.9%), the Turnover per Share (7.4%), Revenue per Person (4.5%), Each business interests (3.8%). Others variables only make small changes when they were taken out of list variables.

4.2.5 Sorting

In the second stage of this study also apply the DEA model with CCR is calculated by a set of weight which is “best” for each DMU, CCW is calculated of weights which is “better”

for all DMU, not for each DMU and AR is calculated by a set of weight which is “better” for each DMU.

Table 4- 10: The comparison of efficiency value at the second stage

DMU CCR CCW AR100 AR20 AR5 AR1

RDC 0.248 0.005 0.227 0.227 0.227 0.220

SFC 1 0.021 0.981 0.976 0.963 0.859

DCC 0.564 0.010 0.445 0.443 0.437 0.403

PCC 0.184 0.004 0.121 0.121 0.120 0.114

YSC&DC 0.415 0.014 0.318 0.311 0.293 0.236

CCDC 1 0.024 0.231 0.229 0.229 0.228

HSC 0.465 0.015 0.362 0.361 0.355 0.325

HTCC 1 0.016 0.759 0.756 0.744 0.678

HPREDC 0.293 0.008 0.270 0.270 0.269 0.260

HCD&CC 1 0.018 1 1 1 0.999

WGDC 1 0.051 0.551 0.542 0.518 0.433

HCC 1 0.012 0.352 0.351 0.345 0.315

CDC 1 1 1 1 1 1

HHCC 0.369 0.009 0.340 0.334 0.319 0.265

FCDC 0.397 0.011 0.276 0.276 0.276 0.271

CREDC 0.108 0.002 0.101 0.101 0.101 0.099

GD&CC 0.065 0.001 0.028 0.028 0.028 0.026

KTPC 0.666 0.012 0.650 0.650 0.650 0.649

HDC 0.287 0.009 0.220 0.220 0.220 0.210

SBBC 0.130 0.004 0.084 0.084 0.084 0.082

SREDC 0.293 0.008 0.255 0.255 0.255 0.255

NAC&DC 0.441 0.004 0.028 0.028 0.027 0.025

FECC 1 0.020 1 1 1 0.920

FLDC 0.095 0.003 0.092 0.092 0.092 0.087

KPCC 1 0.047 1 1 1 0.991

HiCC 0.103 0.003 0.097 0.097 0.097 0.093

SDC 0.502 0.013 0.501 0.501 0.501 0.495

CHCC 0.497 0.011 0.450 0.435 0.394 0.286

KCC 0.177 0.004 0.175 0.175 0.175 0.169

N.E 9 1 4 4 4 1

Source: Summarized by this study

Notes: N.E= Number of efficiency

Figure 4-2: Comparison of efficiency value between CCR, CCW and AR at the Second stage So from the second stage on the CCR model there are 9 companies got the efficiency equal 1 is SFC, CCDC, HTCC, HCD&CC, WGDC, HCC, CDC, FECC and KPCC, on the CCW only CDC company has efficiency equal 1 while others companies have a very small efficiency value, that is because the input of CDC companies is a very tiny number, so it makes a strong affect to others companies on CCW model. So with the inputs is very small but the CDC company already has a large efficiency in market while others companies did not or just a very small profit. And with the AR model on the decrease from AR20, AR5 with 4 companies get efficiency is HCD&CC, CDC, FECC and KPCC, on AR1 just only CDC companies has efficiency value equals to 1. So we can see all three models CCR, CCW and AR1 the CDC company already has efficiency of three models although the input at the second stage is very small, this proved market efficiency of the CDC company is very well.

0.000 0.200 0.400 0.600 0.800 1.000

RDC SFC DCC PCC YSC&DC CCDC HSC HTCC HPREDC HCD&CC WGDC HCC CDC HHCC FCDC CREDC GD&CC KTPC HDC SBBC SREDC NAC&DC FECC FLDC KPCC HiCC SDC CHCC KCC

CCR CCW AR20 AR5 AR1

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