LO8 - Be able to assess the performance of businesses to inform future business activities

Question 1

Factors affecting the success/failure of a business

Answer 1

• Financial - Cash flow, Profitability
• Non-financial - Customer satisfaction, reputation
• Short-term - Competition, market conditions (trends)
• Long-term - Technological advances, demographic change

Question 2

SWOT Analysis for IKEA

Answer 2

• Strength - Cost efficient, known brand, sustainable
• Weakness - Hard to assemble, dependant on european market
• Oppurtunities - Expansion in new continent, sustainability
• Threats - Competition, Supply chain disruptions

Question 3

How interpret business performance

Answer 3

• Financial/Non-financial analysis
• Compare with objectives and similar businesses
• Trends over time
• Assess methods used to improve business performance