SEPARATING MARKET-EFFICIENCY FROM PROFITABILITY AND ITS IMPLICATIONS FOR PLANNING

This paper discusses the practical usefulness of separating market efficiency from profitability when assessing the comparative performance of private sector organizational units. The market efficiency of a unit reflects its ability to attract custom. The paper shows how data envelopment analysis can be used to assess market efficiency and it illustrates the usefulness of this measure in managing the public houses of a brewery.