Micro-economic analysis of firms differentiation

Abstract

After liberalisation established new relations in Slovak economy, it seemed that problems of agricultural companies differentiation would disappear. But the economic results of our companies confirm the existence of this problem. In the pre-reform period, agricultural production intensity was considered as a main factor of economic differentiation. Transformation of economy after 1990 changed the methodological approach to business performance evaluation. The interest was shifted towards the value evaluation comparing businesses with regard to financial indicators. These methods enable to classify enterprises into bonity classes and to set their sequence according to performance.

Keywords

• differentiation
• microeconomic analysis
• enterprise
• profitability
• profit