5. Changes in Business Aims & Objectives

What can happen as a business grows in size?

Its objectives can change, these objectives are often influenced by various internal and external factors

Why are changing business objectives necessary?

To ensure that a business remains competitive, profitable, and compliant with regulations

What can happen as a business grows in size?

Its objectives can change, these objectives are often influenced by various internal and external factors

Why are changing business objectives necessary?

To ensure that a business remains competitive, profitable, and compliant with regulations

What are the factors that cause a business to evolve?

• Market conditions

• Technology

• Performance

• Legislation

• Internal reasons

How can market conditions cause business objectives to evolve?

Competition, demand, and changing consumer price sensitivity can have a significant impact on a business's aims and objectives

How can technology cause business objectives to evolve?

As new digital platforms become available, a business may shift its focus from traditional brick-and-mortar stores to online retail, enabling a more cost-effective way to reach customers

How can performance cause business objectives to evolve?

If a business is not achieving its desired results in a particular area, it may adjust its goals to focus on improving financial outcomes, which could include reducing or exiting certain markets

How can legislation cause business objectives to evolve?

A company may need to shift its focus to comply with new rules or take advantage of new opportunities created by changes in the law

How can internal reasons cause business objectives to evolve?

Factors such as changes in management or the company culture can also influence a business's aims and objectives

How do business’ aims & objectives often evolve?

• Focus on survival or growth - a start up may initially aim to survive by breaking even and becoming profitable, as the company grows and becomes more established its objectives may change to focus on growth e.g. expanding into new markets, investing in new products or services

• Entering or exiting markets - a company may decide to enter a new market to expand its customer base or to diversify its products. Contrary, a business may decide to exit a market if it’s not profitable

• Growing or reducing the workforce - a growing company may need to hire more employees to support its expansion or reduce its workforce to cut costs or streamline operations

• Increasing or decreasing product range - a company may increase its product range to expand its customer base or to stay competitive in the market. Alternatively, a company may decide to decrease its product range if certain products aren’t proving to be profitable