Judging success of a business
• Revenue
• Market share
- Large market share  dominate market
 raise profile  charge higher price
- Increasing market share  winning sales
from rivals  successful
- Challenging to measure  information
may be hard to obtain  need to reflect
market context
• Customer satisfaction
- Monitor customer complaints 
improvement  customer loyalty
- Customer survey  analyze data 
assess customer satisfaction level
• Profit
• Growth
- Turnover or revenue
- The number of employees
- Market share
- The amount of capital employed
- EU definition of size
- (Overtrading may occur)
• Owners/shareholder satisfaction
• Employee satisfaction
The importance of targets when judging success
Many owners set objectives (targets) when running
their businesses. This makes it easier to measure to
measure success.
If the objective has been achieved or even exceeded,
the business can be considered successful.
Targets might be used to motivate staff as well. If
targets are met or exceeded staff may receive
bonusses  higher productivity
Targets can also be adjusted to take into account the
current circumstances of the business. E.g. strong
market growth period = more challenging target
LARGE VS SMALL
Large businesses, especially public limited companies,
have to meet the demands of their shareholders.
Their performance is likely to be measured by the
size of the dividend shareholders receive and by how
much the share price has increased.
 profit and growth
Smaller firms may have different objectives, e.g.
personal satisfaction. Therefore, their success can be
measured by looking at whether these objectives
have been met.
Capital employed – amount of money invested in a
business
Overtrading – taking on more work than a business
can afford to fund effectively
Recruitment and selection
Full-time
A business takes on an employee
employment who is expected to work the full
working week
Part-time
Work fewer hours than full-time
employment colleagues, must be less than 30
hours
Job share
Two part-time workers share the
work and pay of a single full-time
post
Casual
No guarantees of work from
employment employer
Variable & uncertain worker hours
Employees not obliged 义务 to
accept work when offered
Seasonal
Laid off when season ends
employment Regular & full time but short lived
Suits certain lifestyle
Temporary
Needed for a short period of time to
employment cover for absent workers e.g.
paternity leave/long-term sickness
Likely to be full-time, varied
contract length
Stages in the recruitment process
Recruitment is important because if the wrong
people are selected it can be expensive.
If new recruits leave, all the costs of advertising,
interviewing, induction and training will have to be
repeated.
Internal recruitment
External recruitment
Appointing workers from
inside the business
Appointing workers from
outside the business