Analyzing Business Performance: A Practical Approach with Real Examples

In today’s competitive economy, every business—large or small—must regularly assess its performance to ensure it remains profitable, efficient, and sustainable. Business performance analysis helps companies identify strengths, weaknesses, and opportunities for improvement. Below is a practical guide on how to analyze business performance using real Malawian examples. 1. Financial Performance Financial performance reveals whether a business is making profit and growing sustainably. Key indicators include revenue growth, profit margins, return on investment (ROI), and cash flow. Example: If Shoprite Malawi reports MK10 billion in revenue this year compared to MK8 billion last year, it shows a 25% increase. However, if net profit declines due to high operating costs, the company needs to address expense management despite strong sales. 2. Customer Performance Customers determine the survival of any business. Measuring customer satisfaction, retention, and acquisition helps assess brand lo...