B2 Non-Financial Growth Measures
Non-financial growth measures are quantitative and qualitative indicators that assess a company's performance and progress towards its strategic objectives, without directly using monetary values. These measures focus on aspects beyond just financial metrics to provide a more comprehensive view of the business's overall health and potential for future growth.
Market share
Market share measures the sales of one business compared to the overall sales in the market (the total sales of all businesses selling the same product). It is calculated as a percentage using the formula
(sales of business/total market sales) x 100
Market share is an important measure of a company's growth. It shows how well a business is doing compared to its competitors. By tracking changes in market share, companies can understand their position in the industry and whether they are growing or declining. For example, Apple’s share of the smartphone market has increased from 22.71% in 2019 to 28.32% in 2024.
Total sales
Total sales represent the total money a business receives from selling its products or services during a specific time. This includes all types of sales, such as cash and credit transactions, and is usually shown in dollar amounts.
Total sales can be used to measure a company's growth and financial health. They help businesses track their performance against goals and industry standards, identify customer trends, and understand market conditions. Investors also use sales growth to decide whether to invest in a company.
Number of Products
A product portfolio is a company's complete collection of products and services designed to meet diverse customer needs. It includes a variety of items at different stages of their life cycle, such as Coca-Cola's portfolio of over 500 brands like Diet Coke, Fanta, and Sprite, as well as water, juices, and teas.
A company's number of products reflects its growth and ability to satisfy diverse customer needs. Introducing new products can attract more customers and boost sales, while comparing product portfolios with competitors highlights strengths and areas for improvement. However, managing a large portfolio effectively is crucial for sustained success.
Total output
Total output in a business means the total amount of goods and services it produces over a certain period, usually measured in money. It shows how much the business has made and helps assess its performance and growth.
Total output is an important metric for assessing the growth of an enterprise, as it offers insights into the effectiveness of operations. It can also indicate changes in revenue, improvements to efficiency, productive capabilities and changes in market share.
Number of Employees
Employees are individuals who work for an organization or company in exchange for compensation, typically in the form of wages or salaries. They contribute their skills, knowledge, and labour to help the organization achieve its goals and objectives. They may be full-time, part-time, temporary or contract workers.
An increase in employees usually indicates business growth, as companies hire more staff to meet demand or expand. Tracking employee numbers helps HR plan future hires. A growing workforce boosts investor confidence and helps identify strengths and weaknesses compared to competitors.
