Business Information

The changing of company’s stock price provides an indication of company’s performance during certain periods, at least at the aggregate level. Company’s achievement is the company’s ability to manage its property that derived from any certain fund resources in order to generate profits.

As it been mentioned previously, the company’s achievement can be assessed from the financial statements that issued periodically. The stock price is determined by demand and supply in the stock market. Stock prices provide an objective measure of the investment value of a company.

Therefore, the stock price provides an indication of investor changing expectations as a result of financial performance changes. Finally, the stock price variations at a certain time provide an indication for the increasing of company’s financial performance. There are several ways that you can use to evaluate the stocks.

There are two categories, namely technical analysis and fundamental analysis. Technical analysis is using the previous price data in order to estimate the securities price in the future. Fundamental analysis is striving to identify the company’s prospects (through an analysis of the influenced factors) in order to be able to predict the stock prices in the future. One thing that include in the fundamental evaluation is an assessment of the company’s financial performance.

Performance management is a key to success of an organization. When an organization grows and develops, these developments will be followed by the increased of complexity in controlling the organization. Therefore we need a performance control system that is systematic and well-organized.

With planning and good implementation process, a company can achieve continuous success, which the periodic assessment of the performance is the essence of the process for achieving the success. The same thing applies on the insurance companies.

Generally, for an insurance company, the measurement of performance can be separated into two parts, that are financial performance and non-financial performance. Financial performance on an insurance company is generally expressed in the measurement of net premium earned, income from underwriting activities (surplus underwriting), annual turnover, return on investment, return on equity, and so on.

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There are lots of factors that affect on the company’s performance, among them are like external business environmental factors such as government policy, legal and political power, technology, resources, competitors, customers taste and management. In the perspective of strategic management, the environment is an important contextual factor that has impact on the company’s performance.

The external business environment is an environment outside the organization, but consider in making business decisions. Finding other contextual factors that affect the performance such as technology, uncertainty, strategies and competencies. Globalization, economic conditions, technological change can also affect on the company’s performance.

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