Introduction of a Model for Measuring Cost Effectiveness of Economic Firms Operating in the Armed Forces

The presence or absence of armed forces in the economic fields and measuring the success of these forces is one of the topmost management issues of the country. In the present study, by presenting the arguments for and against the introduction of the armed forces into the field of economics, the problem has been presented and then by evaluating different models of economic portfolio decision making, the final model for cost effectiveness or lack of it regarding the activity of the economic firms of the armed forces has been deployed. This paper aims to provide a suitable model for evaluating the activities of the firms of the armed forces of the country. The convenience sampling method was used to collect the required data. The data collection instrument was questionnaire. Based on the discussions, 100 questionnaires were collected from available community members. In order to analyze the collected data, exploratory factor analysis, Friedman test, and AHP hierarchical analysis methods and SPSS 22 software were used. After the extraction of model, one-sample T-test method was used for model validation. The results showed that 24% of the companies in the case under study are allowed to continue their operation. The rest of the companies must be liquidated (56%), or have to obtain the required authorizations from the relevant sources (20%) to continue operating. Four factors were identified as significant factors affecting some of the complete failure of military forces in the activities of firms: a) Presence of some inappropriate systems for selecting managers (board of directors and CEO), b) presence of precipitance in selecting some areas of activity, c) extension of some military laws into the economic field, and d) assessing and monitoring of insufficient performance of some CEOs.