Comparative analysis is a method of comparing two or more objects of research (phenomena, objects, ideas, results, etc.). As a result of such an analysis, the advantages and disadvantages of the compared objects with the purpose of classification are revealed. Comparative analysis is used in various disciplines. The meaning, types of analysis and examples are discussed in the article.
Benchmarking plan
Comparison is one of the simplest ways in which a person learns the world around him. The whole point of the comparative method is to identify the advantages and disadvantages of the objects being compared. The objects of study should be homogeneous, that is, they must belong to the same genus, category. After the objects of comparison are selected (there can be two or more), the type of comparison is selected. For example, dynamic, spatial, etc. The next step is to determine how many indicators will be evaluated, compared objects. And the final step in the comparative analysis method is to select a comparison scale.
Disciplines that are based on a comparative method
A comparative analysis is based on a number of disciplines that relate to various spheres of human life. For example, comparative anatomy, which is one of the biological disciplines, is studying the laws of the structure and development of both the organs themselves and their systems. And such disciplines, in addition to comparative anatomy, using the comparative method of analysis as the basis of cognition, there are quite a lot: comparative theology, comparative historical linguistics, comparative literature, comparative mythology, comparative political science, comparative law, comparative psychology, comparative religion, comparative criminal law, comparative philosophy.
Advantages and disadvantages of the comparison method
Comparative analysis is universal, refers to general scientific research methods, it is a logical device in the knowledge of the world. It allows you to highlight the common features, signs of the analyzed objects, to identify differences, to identify the distinctive features of specific objects from among the common for all analyzed objects (phenomena, ideas, results, etc.). The main disadvantage of the method under discussion is that all the results obtained can be questioned in connection with their subjectivity: what seems to one to be a difference is either imperceptible to the other, or not a distinctive feature at all. In other words, the inability of the analyzer to objectively evaluate the properties of the investigated object, compare them with the properties of other objects and take into account all aspects of the process of identifying common and different characteristics is the main drawback.
Classification
Comparative analysis can be divided into:
- Quantitative - quantitative characteristics are analyzed.
- Qualitative - analysis of the characteristics that determine the quality of the studied object, phenomenon, result.
- Retrospective - analyzed past changes that affect the current situation.
- Applied - the result of the object’s activity is investigated.
- Research - this type of analysis is used in the analytical sciences.
- Descriptive - initially explores the structure of the object (phenomenon), gradually moving on to the analysis of functions and goals.
- General - based on a general theory of systems.
- Structural - this type of analysis studies the structure of the analyzed objects.
- Microsystem - is used to study a specific system.
- Macrosystem - analyzes the role of specific systems in a variety of similar systems, interconnected by common features.
- Vital - is engaged in the study of development and its main stages of the analyzed system.
- Genetic - heredity, its mechanism, genetic systems are investigated.
- Other species.
Comparison in the economy
Most often, comparative analysis is used as a method of processing economic information. To obtain reliable knowledge about a certain period of time, to select the path for further development, to identify the most acceptable option and to solve many other economic problems and issues, this analysis is used. The comparative analysis method is effective and indicative at all levels. It plays an invaluable role in assessing the potential of enterprises.
Varieties of the method of comparison related to economic activity
For research in the economic field of activity, there are the following types of comparative analysis:
- Horizontal and vertical. Horizontal benchmarking specializes in determining the absolute and relative deviation between indicators that compare with each other. A vertical analysis of the calculation of the specific gravity of parts allows us to study economic phenomena, namely their structure.
- Dynamic and static. The dynamic method is also called temporary, it allows you to study the changes in the analyzed processes (phenomena, objects) in time. Static, or spatial, studies the level of the same indicator for a certain time on different objects of research.
- One-dimensional and multi-dimensional. The essence of one-dimensional analysis is that either several objects are analyzed for one indicator, or one object is analyzed for different indicators. The multidimensional method allows you to explore several objects for several indicators.
- Based on the comparison. At this point, you need to dwell a little more. The fact is that this view includes several subitems.
- The first of these is a comparison of expected data with period data, considered as reference data. In other words, a forecast is made of the results that should be obtained, then the result is compared with the reporting data of a certain period.
- Comparison of planned indicators with actually obtained indicators.
- Comparison of the factual data with standard values of indicators established by the norms.
- When the industry average values of the analyzed indicators are known, then the actual data obtained are compared with industry average.
- Comparison of actual data with data obtained in the previous period (last year / month / half year).
- Comparison of the data obtained with the data obtained at leading enterprises that are leading in the industry.
- If any factor was changed or the production situation was changed, then the data that were received before and after the changes were made is compared.
- And finally, a comparative analysis of different solutions in the field of management.
Summary
The results of the comparative analysis are data that are obtained in the comparison process. That is, all the distinguishing features, as well as similar ones, are summarized, as a rule, in tables. Based on the values entered in these tables, conclusions are drawn about the disadvantages and advantages of a particular analyzed object / effect / phenomenon, etc. In other words, the conclusions made on the basis of the identified distinctive features are the result of a comparative analysis.
Comparison of corporate governance models
A comparative analysis of corporate governance models used in different countries of the world consists of a comparison of these models among themselves according to various criteria. One of the most important criteria is the hiring of workers. Two options are possible: quick hiring for a short / long period of time and hiring long for a short / long period. In the second case, the hiring of workers, as a rule, consists of several stages: the candidate for the position is interviewed (possibly not one), then proceeds to training, then undergoes training to consolidate the acquired skills and gain experience in using knowledge in practice, then an exam is passed, the results of which the candidate receives or does not receive the desired position. A criterion such as decision making can also be of a different nature - either individually decisions are made, or collectively. Responsibility, as well as decision making, can be collective and individual.
Indicators of financial and economic activity of the enterprise
A comparative analysis of indicators of financial and economic activity of the enterprise begins with the definition of these same indicators. Four main large groups of indicators are distinguished, which, in turn, are divided into several smaller ones. The indicators characterizing the economic potential of the enterprise include the assets of the enterprise (i.e., property owned by the enterprise and cash), fixed capital (in other words, part of the capital that takes part in the production activities of the enterprise more than once) and others indicators. The general results of the enterprise’s activity are estimated by the general expenses, which include the costs of maintaining the equipment and its operation, and workshop expenses. Efficiency can be assessed by profit, return on sales, assets, equity. The financial situation is characterized by such parameters as solvency (general and current), market and financial and economic stability.
Non-Economic Examples
As mentioned above, comparative analysis is used in many areas of human activity. Not only economic efficiency can be estimated by this method. An example of a comparative analysis is the consideration of political, economic, and social reform programs. It is much easier to make the right decision by comparing the accepted projects with foreign experience, the experience of previous years. The study of management methods, legislation, structures of state systems, as well as their comparison with the experience of other states, allows us to adopt positive experience and effectively implement it in our country both to improve the lives of citizens and to improve the state itself.
Conclusion
So, the concept of "comparative analysis" refers to many sciences. This method is one of the main logical ways of knowing the world around. Since time immemorial, humanity has been using comparison as the most effective way to study phenomena, results, objects. Due to its versatility, comparative analysis is widely used in various fields of human activity.