Why might a business compare its past performance with its present performance?

A business comparing its past performance with its present performance mainly serves the purpose of measuring business performance. This comparison allows a company to identify trends, assess growth or decline over time, and evaluate the effectiveness of its strategies and operations. By analyzing financial metrics, customer satisfaction figures, and operational efficiency, businesses can gain insights into areas that require improvement or those that are performing well.

While evaluating employee satisfaction, optimizing marketing budgets, and determining pricing strategies are all important aspects of business management, they are more specific actions that typically stem from understanding overall business performance. Measuring performance provides a foundational understanding that can inform these broader decisions and strategic adjustments.