Measuring Business Success (Edexcel IGCSE Business)

Income received from selling goods and services is compared over time and against competitors

• An increase in revenue suggests that a business is growing and its decision-making is effective

Sales of the company are measured as the percentage of total sales in an industry

• Growth in market share over time can help to improve a businesses market position and increase its competitiveness

The proportion of sales converted to profit is compared over time and against competitors

• A high profit margin means that the business can cover its costs, reinvest profits to grow and reward investors

The opening of new outlets or production facilities or an increase in the size of the workforce suggests business growth

• Growing businesses can take advantage of economies of scale and are likely to become better-known 

Shareholders are most likely to be satisfied when share prices and dividends are increasing

A rising share price occurs when a business is increasing profits or is considered to have potential to grow

Businesses that generate healthy profits may choose to increase dividends for shareholders

Positive reviews and recommendations from customers indicate that a business is meeting this objective

The number of returning customers is an indication of customer satisfaction

Last Ottoman Cafe & Restaurant in Istanbul is rated as one of the city's  top five restaurants on Tripadvisor

Low levels of staff turnover, high labour productivity and large numbers of applications for job vacancies indicate that a business is meeting this objective

In 2023, financial services business Groupe Hexagone was rated by employees as one of France's best places to work

Business owners often have personal objectives they want the business to achieve

If a business is providing a good service, allows an owner to earn a satisfactory income, or achieves recognition, these personal objectives may be met

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