2.1.2 changes in business aims and objectives

business aim

a long-term goal that a business hopes to achieve

business objectives

the stated, measurable targets of how to achieve business goals

Why business aims and objectives change as businesses evolve

Market conditions, technology, performance, legislation, internal reasons

Market conditions

Lots of new competitors entering market therefore business has to change their aims

Technology

May be technology in product offered

E.g Dyson on vacuum cleaner market so other competitors has to change their aims

performance

If it has done well, then may decide to expand

If done bad, may reduce number of staff and focus on core business

Legislation

E.g minimum wage law in uk so business has to change aims as growth may be slower due to new higher wages

New objectives may be cutting costs or lowering staff

Internal reasons

If business wants to expand, it may have objectives of higher market share and high revenue

If business has new leader, it is common to change aims and objectives

examples of how businesses aims and objectives change as business evolves

-focus on survival or growth

-entering or exiting markets

-growing or reducing the workforce

-increasing or decreasing the product range

Focus on survival and growth

May change objectives by focusing on survival in the first year

After initial start up, business may wish to grow and expand

Entering or exiting markets

May start selling to another market so objectives like include a merger as part of new plan

Growing or reducing the workforce

Business may change size of workforce to meet aims and objectives

E.g expansion would mean a take on of more staff

Increasing product range

Customers have more choice so sales increase and profits

Decreasing product range

Go back to core business

Gets rid of obsolete products or old products

Financial aims

Reduce costs

Increase sales

Non-financial aims

Expand into new market

Find high quality raw materials

Brand awareness

Social objectives

To be eco friendly

Source raw materials ethically