Determining the impact of business performance on business success

Abstract

Every company strives to carry out its activities successfully, overcome fierce competition, and improve its results. Recently, social networks have become important in the field of communication, which is why it is important for companies to know how to assess the impact of social networking activities on business success. Social networks introduce an opportunity to receive information quickly and conveniently, increase sales, and promote closer relationships with consumers, which is important for the successful operation of the organization. The problem under consideration is relevant because it is associated with the processes of developing a successful communication strategy that can help a business run successfully. The aim of the scientific article is to determine which performance indicators of the company are most important for business success and to distinguish groups of companies according to similar performance indicators. The Kendall method was used in the expert appraisal to achieve this goal, and the results showed that the most important performance indicators for the company’s success are high sales and company awareness, with the least impact on the company’s assets. A hierarchical method and a k-means method were used for the cluster analysis, and the results showed that the first cluster was characterized by a small number of employees, low investment, low net profit but satisfactory sales revenue, and a sufficiently low residual rate. The second cluster had a large number of employees and accumulated profits, a lot of investment, and relatively high residual rates. In practice, these results are useful to operate effectively in a competitive market, so the company should determine which performance indicators have the greatest impact on business success.