lo8 Flashcards
1
Q
factors which affect business success
A
- financial factors - cash flow, profit, sales revenue
- non-financial factors - reputation, product range, size of workforce
- positive factors - large market share, reputation of quality, committed workforce
- negative factors - making a loss, bad publicity
- past factors - reputation built over previous years, state of the economy in previous years
- present factors - success of the marketing campaign, good planning and decision making
- future factors - outcome of impending legal action, changes to business aims, increase in interest rates
2
Q
what can factors be?
A
short / long term
3
Q
what is a swot analysis
A
tool used to analyse the strengths, weaknesses, opportunities and threats to a business’s current operations
4
Q
stengths and weaknesses
A
- internal factors (come from within the business)
- within control of business
5
Q
examples of strength
A
- skills of the owner
- a reputation of quality
- helpful staff
6
Q
examples of weakness
A
- inflexibility
- poor cash flow management
- high break-even point
7
Q
opportunities and threats
A
- external factors
- beyond control of the business
8
Q
examples of opportunities
A
- increasing use of mobile technology
- increasing popularity of organic food
- increase in consumers with environmental conscience
9
Q
examples of threats
A
- new competitors
- change in legislation
- increase in taxes
10
Q
what can a business do to interpret progress
A
- asking questions - are expenses too high? is the level of profit acceptable?
- comparing with organisational objectives - have growth objectives been met? has the business been enterprising
- looking for trends - is the revenue increasing over time? are profits falling? is output increasing?
- Benchmarking against industrial averages - are wastage rates higher or lower than the industrial average?
- comparing with similar businesses - does competition charge lower prices?
