The Role of Business Analysis for Mechanical Engineering and Metalworking Companies

Abstract

The aim of chapter is to investigate present position of companies in mechanical engineering and metalworking sector, to prepare proposals for management improvement and financial performance strengthening in these companies. We applied different methods in the research such as theoretical sources, statistical data analysis, forecasting, and other financial calculations. Quantitative research methods were used to analyze trends and structural problems in industry. Additional methods such as sector expert interviews and personal observations were used. Company’s financial independence increases the need to carry out the business analysis of the company in order to improve its efficiency and profitability. Mechanical engineering and metalworking sector is one of the leading industries in Latvia. This industry is a diverse sector encompassing many subbranches. In a saturated market with a high level of competition, it is essential for companies to plan their business strategy in order to secure a sustainable work, keep job places, and secure stability. Managers need information and knowledge about the company’s business activities and financial results of it in order to diversify internal and external resources, they need to set problem segments and modify the activity model. As a result of the research the authors have drawn the conclusions that in order to carry out business efficiency evaluation.