LO8- Be Able To Assess The Performance Of Businesses To Inform Future Business Activites Flashcards
What should businesses regularly be analysing?
Is it still relevant in the market
Maintains a real competitiveness within the market
Can identify if there are any potential trading issues
Strives towards future plans within overall business aims
What is financial factors?
Businesses need to consider the results of their performance in the market by focusing on their profit, the turnover and the amount of capital employed within the business. This gives them a better understanding of the business’ current position.
What is non financial factors?
If a business does not understand its market or its customers it’ll fail.
What is SWOT analysis?
This is a tool that businesses use to analyse its current and future position to aid decision making. Those 4 things are Strength, weakness, opportunities and threats.
What is Opportunities in SWOT
A opportunity in the business that has the potential to succeed. These examples include, increased popularity of internet and social trends towards healthy eating. Seeing potential is key when identifying opportunities.
What are threats in SWOT?
These are external factors that a business cannot usually control. This is like new laws, changes in the government and etc.
What is business performance?
How a business judges if it is succeeding and in which areas it needs to improve, to maintain or gain in terms of market shares
What is Financial analysis?
A variety of different tools that enable a business to review its current financial arrangements, make improvements and future plans for the organisation.
What is key performance indicator?
A measure that a business judges itself against based upon the goals it has set itself.
What three ways can business performance be measured in?
Financial analysis
Assessment of non financial information
Comparison with industry and business in various forms
