Business GCES OCR
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Business-Enterprise-And-Entrepreneurship ocr2 主题
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Business-Planning ocr2 主题
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Business-Ownership ocr4 主题
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Business-Aims-And-Objectives ocr1 主题
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Stakeholders-In-Business ocr2 主题
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Business-Growth ocr1 主题
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The-Role-Of-Marketing ocr1 主题
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Market-Research ocr5 主题
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Market-Segmentation ocr1 主题
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The-Marketing-Mix ocr12 主题
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Introduction-To-The-Marketing-Mix
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Product-The-Product-Life-Cycle
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Product
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Price
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Price-Methods-Of-Pricing
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Price-Applying-Pricing-Methods
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Place-Physical-Distribution
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Place-Digital-Distribution
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Promotion-Advertising
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Promotion-Point-Of-Sale-Methods
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Promotion-Using-Social-Media
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The-Integrated-Marketing-Mix
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Introduction-To-The-Marketing-Mix
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The-Role-Of-Human-Resources ocr1 主题
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Organisational-Structures ocr2 主题
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Different-Ways-Of-Working ocr1 主题
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Communication-In-Business ocr3 主题
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Recruitment-And-Selection ocr3 主题
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Motivation-And-Retention ocr1 主题
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Training-And-Development ocr2 主题
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Employment-Law ocr1 主题
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Production-Processes ocr2 主题
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Quality-Of-Goods-And-Services ocr1 主题
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The-Sales-Process-And-Customer-Service ocr2 主题
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Consumer-Law ocr1 主题
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Business-Location ocr1 主题
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Working-With-Suppliers ocr1 主题
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The-Role-Of-Finance ocr1 主题
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Sources-Of-Finance ocr2 主题
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Revenue-Costs-Profit-And-Loss ocr4 主题
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Break-Even ocr2 主题
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Cash-And-Cash-Flow ocr2 主题
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Ethical-And-Environmental-Considerations ocr2 主题
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The-Economic-Climate ocr1 主题
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Globalisation ocr3 主题
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Interdependence-Of-Business-Functions ocr1 主题
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The-Impact-Of-Risk-And-Reward-On-Business-Activity ocr1 主题
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Financial-Information-And-Business-Performance ocr1 主题
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Paper-1-Business-Activity-Marketing-And-People ocr2 主题
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Paper-2-Operations-Finance-And-Influences-On-Business ocr2 主题
Using-Financial-Information-To-Make-Effective-Decisions
Exam code:J204
Measuring business performance
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A range of financial information can be used to measure the performance of a business
Useful information to help measure business performance
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Sales |
Purchases |
|---|---|
|
|
|
Indirect costs |
Output |
|
|
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Businesses may use a range of this data to determine how successful it has been in meeting key aims and objectives
Case Study
O Pãozinho das Marias Bakery
O Pãozinho das Marias is a popular small bakery and cafe, located in the pretty seaside town of Ericeira, Portugal. The business is owned and run by Francisco, whose reputation for producing some of the country’s finest pastels de nata has helped it achieve great success
Francisco uses a range of financial data to measure the bakery’s success:
Revenue, costs and profit
|
2022 € |
2023 € |
|
|---|---|---|
|
Revenue |
302,100 |
349,600 |
|
Direct costs |
146,400 |
149,200 |
|
Overheads |
127,500 |
151,300 |
|
Net profit |
28,200 |
49,100 |
Profit margins
|
2022 % |
2023 % |
|
|---|---|---|
|
Gross profit margin |
52 |
57 |
|
Net profit margin |
9 |
14 |
Other financial measures
|
2022 |
2023 |
|
|---|---|---|
|
Market share (%) |
29 |
34 |
|
Average customer spend (€) |
4.28 |
5.47 |
|
Wastage rate (%) |
5.9 |
5.1 |
Francisco also uses a range of non-financial measures to judge success:
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The bakery’s Facebook rating improved from 4.0 in 2022 to 4.2 in 2023, with more than 5,100 unique followers
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Staff turnover at the bakery fell from 12.5% to 6.5%
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Several tour operators have approached Francisco to run bakery courses for visitors to the area
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No customer complaints were received in 2023
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The bakery received 58% more 5* Tripadvisor ratings in 2023 compared to 2022
How the data can be used to demonstrate business success
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Francisco can demonstrate the success of O Pãozinho das Maria’s in a range of ways:
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Business revenue increased by 15.7% between 2022 and 2023, with average customer spend increasing by almost 28%
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Although business costs increased by 9.7%, net profit increased by more than 74% as a result of increased revenue
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The bakery’s market share rose, which indicates improved competitiveness over rivals
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The wastage rate fell, indicating improved control over production processes
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Customer impressions of the business have improved, with key ratings from Facebook and Tripadvisor improving significantly
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Staff turnover has almost halved, indicating improved worker satisfaction
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The business’s reputation is opening up new opportunities, such as offering bakery courses
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Making decisions
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Financial data can be used to support business decision making, such as
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How to increase sales
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How to reduce costs
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Which marketing tactics to adopt
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How to improve productivity
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Case Study
Fresh Fields Nursery
Sidney Parker took over as the owner of Fresh Fields Nursery Ltd in 2022, following his father’s retirement. The business, a successful small wholesaler of garden plants, has changed little since Francisco’s grandfather established it in the late 1950s
Determined to grow the business and improve its profitability, Sidney took a range of steps to modernise the business:
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Installation of a computerised sales, accounting and stock system
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Automation of elements such as irrigation and greenhouse heating,
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Introduction of quality monitoring systems across the business.
These changes meant that Sidney had a large volume of data to help him understand why, with growing sales revenue, profits were less consistent. This could then help him make appropriate decisions to make the business more successful.
Sales and profit
Fixed and variable costs
Responses