📊 Part 1: Understanding KPIs

1. What does KPI stand for?

Key Performance Indicator

Key Profit Indicator

Key Product Information

Key Personnel Information

2. Which of the following are examples of business KPIs? (Select all that apply)

Sales growth percentage

Customer satisfaction rating

Employee birthday dates

Profit margin

Office decoration colour

3. Why are KPIs important for businesses?

They help measure business performance and success

They are required by law

They make businesses look professional

They reduce the cost of running a business

4. Complete the sentence: A café owner would use KPIs to _______________ their business performance.

A café owner would use KPIs to _________________ their business performance.

📈 Part 2: KPI Analysis

5. Business Scenario: "Sunny's Surf Shop" had the following results last year:
• Sales: $180,000 (up from $150,000 the previous year)
• Costs: $120,000
• Customer complaints: 15 (down from 30 the previous year)
• Customer satisfaction rating: 4.2/5.0

Calculate the profit margin: Profit Margin = (Sales - Costs) ÷ Sales × 100

6. Based on the data above, identify TWO positive KPI trends for Sunny's Surf Shop:

7. Suggest ONE KPI that Sunny's Surf Shop should monitor to improve their business further. Explain why this KPI would be useful.

🎯 Part 3: Business Performance Evaluation

8. Which evaluation method would be most useful for measuring customer happiness?

Financial ratios analysis

Customer feedback analysis

Profit margin calculation

Return on investment analysis

9. Extension Activity: Choose a local business you know (e.g., bakery, sports shop, restaurant). List THREE KPIs they should track and explain why each one is important for their success.

10. Reflection: Why do you think it's important for businesses to evaluate their performance regularly? Give TWO reasons.