4B Flashcards
KPI p1
what are key performance indicators (KPIs)
Criteria that measure a business’s efficiency and effectiveness in achieving its different objectives.
what are net profit figures and how do you get them?
a company’s total revenue, excluding its total expenses – thus showing what the company has earned (or lost)
in a given period of time and is calculated by subtracting total expenses incurred from total business revenue earned, over a specific period of time. when new figures go lower, revenue is falling and/or costs are rising
what is percentage of market share
The proportion of a business’s total sales, compared to the total sales in the industry expressed as a percentage figure. when new figures are lower than old figures, this tells us that there is a falling sale as a % of the industry
what is the number of sales?
The total quantity of goods and services sold by a business over a specific period of time. when new figures less than old, product is less popular
what is the rate of productivity growth?
is the change in the total output produced from a given level of inputs over time expressed as a percentage figure. this can be calculated by (new productivity rate- old productivity rate/ old productivity rate) x 100
what is productivity?
(in Business) the ratio of outputs compared to inputs required. when new figures are lower, productivity is falling
what is the number of customer complaints
The number of customers who notified the business of their dissatisfaction over a specific period of time. when new figures go up, costumers are becoming more dissatisfied
what are some examples of productivity growth
- Machinery failing to produce goods as quickly, potentially due to aging. this can be solved by investing into tech and redeploy resources (capital/ labour).
- staff are failing to produce as quickly. can be solved by increasing staff motivation and increasing staff training (on or off the job)
