Sample ratio analysis is used to compare performance of similar business entities operating in a business space. Business space is as diverse as automobile dealerships, thermal power stations in a country, tankers operating in Atlantic Ocean.
The criterion for evaluating efficiency often is rarely uni-dimensional. Sample ratio analysis may combine inputs and outputs in different units across different dimensions to arrive at a comprehensive efficiency index.
Business frontier analysis uses the technique of data envelopment analysis to find out the efficiency frontier without reducing of inputs and outputs to common measuring unit.
Metric’s data envelopment analysis ensures that peers emerging from the analysis are comparable with the learning units so that learning units can directly learn from the peers to increase efficiency of their operations.
Manufacturers competing with each other to increase stock of their brand with multi brand dealers in the market. This often results in un-wise credit to the dealers.
Metric’s CRIDA is a system based on mystery customer visits to judge the management practices of the dealer when he extends credits to his customers. Additional factors like reputation in the local market, succession plan, etc. are taken into account to arrive at credit rating of a market dealer.
Given the paucity of authentic financial information regarding the dealership, Metric’s CRIDA reports become very necessary for sales manager to manage credit and avoid large bad debts.