LO8

Question 1

factors that affect success/failure

Answer 1

Financial - Failure to meet financial deadlines or keep the money flowing when needed

Non-financial - Factors not related to money that can impact in your business, such as its reputation, ethical challenges, etc.

Short term - Changes in exchange rates, recessions, increase in consumer spending are all often short term factors

Long term- Changes in the market, new laws affecting business, etc. For

Question 2

SWOT analysis

Answer 2

STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

Question 3

business performance

Answer 3

In order to secure a business’ future, successful businesses will use the following performance analysis:

Financial analysis - checking figures, incomings and outgoings, what items are causing debts to amount.
Assessment of non-financial data – breaking down balance sheets and using them to speed up or streamline processes
Comparison with organisational objectives – linking the financial documents to future objectives, setting aside money for such objectives
Comparison with industrial averages – checking sales and outgoings against others, benchmarking.
Comparison with similar businesses – using what you know of the competitor to make the business better
Trends over time – seeing if the lull or high is seasonal in order to prepare for the consequences
Methods used to improve business performance – always researching and making things better, Kaizen and JIT.