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AQA GCSE · Question 03.1 · Business in the real world

Item C: Emilios
Emilios is an ice cream shop located in St Ives in Cornwall. St Ives is a very popular town for tourists, especially in the summer. Customer satisfaction is an important objective for Emilios. The ice cream is made on site and there are over 40 flavours.
Emilios ice cream cones are produced by Cornets Ltd. Cornets Ltd used to sell directly to 50 different ice cream shops across Cornwall, delivering on average 1000 cones a week to each shop. It now sells to a large wholesaler with hundreds of customers.
Emilios has an ice cream 'flavour of the day'. One employee stands outside the shop for most of the day promoting this flavour by offering a free sample to people passing by. The ice cream samples are very popular and need replacing regularly. The free samples encourage tourists to enter the shop, however some customers have complained about the time they spend waiting to be served once inside.

Explain one way a business might measure its success, other than profit.

How to approach this question

The question asks for a measure of success that is *not* profit. 1. Identify a non-financial objective or measure (e.g., customer satisfaction, market share, employee satisfaction, growth). 2. Explain how a business would measure this. For example, for customer satisfaction, how do you find out if customers are happy?

Full Answer

One way a business can measure success is by monitoring customer satisfaction. This can be done by collecting customer feedback through surveys, online reviews, or by tracking the level of repeat business. High customer satisfaction indicates the business is meeting customer needs, which is crucial for long-term survival and growth.
While profit is a key indicator of success, businesses use many other measures to gauge their performance. These include: - **Customer Satisfaction:** Measured through surveys, reviews, and repeat purchase rates. Happy customers are more likely to return and recommend the business. - **Market Share:** The business's portion of total sales in the market. An increasing market share suggests the business is outperforming its rivals. - **Growth:** Measured by an increase in sales revenue, number of employees, or number of branches. - **Employee Satisfaction:** Measured through staff turnover rates and employee surveys. A happy workforce is often more productive. - **Brand Recognition:** The extent to which consumers are aware of the brand. - **Ethical/Social Objectives:** Achieving goals related to sustainability or community support.

Common mistakes

✗ Stating "profit" or a profitability measure. ✗ Identifying a measure but not explaining how it is measured or why it shows success.
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