Performance measurement of an enterprise and business units with an application to a Taiwanese hotel chain

Performance evaluation is an important issue for managers, since it can be used as a reference in decision making with regard to budget distribution and/or performance improvement for business units. This study modifies the data envelopment analysis model to evaluate the performance of an enterprise, and shows that we can utilize the available outputs of the modified model to easily calculate the efficiencies of business units. In addition, an efficiency evaluation of a hotel chain is carried out through a literature review and the use of experts' opinions to determine the measurement factors, and several managerial insights are discussed. (C) 2009 Elsevier Ltd. All rights reserved.