8.3 How to interpret business performance

Question 1

Examples of how to interpret business performace?

Answer 1

Analyse financial data
Analyse non-financial data
Compare performance with organisation goals and objectives
Compare data with competitors and similar business
Review trends in data
Analyse methods that can be used to improve business performance

Question 2

What is benchmarking?

Answer 2

Comparing business performance with the standard of businesses operating in the same market and industry averages

Question 3

What can be measured with benchmarking?

Answer 3

Financial performance
Marketing and promotion performance
Employee performance
Operations performance

Question 4

What is Key Performance Indicators?

Answer 4

Used to assess business performance and relate to business success
Can relate to organisational objectives

Question 5

Methods to improve business performace?

Answer 5

Recruitment, training and motivation
Business planning
New product development
Finance
Operations
Marketing
Interpreting past and present performance