Firm Performance Measurement Using Trend, Cyclical, and Stochastic Components

Richard A. Bettis, Southern Methodist University
Vijay Mahajan, Southern Methodist University


A "trend, cyclical, stochastic" approach or TCS is proposed as a means of factoring uncertainty into the measuring a firm's performance in comparison with others in the industry. The TCS process is able to analyze trends in environmental variables as an aid to analyzing the the relationships between environment and the organization.