2.1.2 changes in business aims and objectives

why do businesses aims and objectives change when it grows

market conditions

technology

performance

legislation

internal reasons (such as a merger or takeover, new management team or new management director)

how can market conditions be a reason why businesses aims and objectives change

market constantly changes, such as new competitors enter the market customers needs change and costs rise or fall

how can technology change the businesses aims and objectives

technology changes and develops quickly, so the business has to keep up with the technology or they risk falling behind. Technology like e-commerce or new production technology

how can performance change the businesses aims and objectives

if a business launches a product and the performance is good, the business would be encouraged to go to new markets, increase market share and launch new product these are opportunities. If the business launches a product and the performance is bad, the business may likely focus on survival, reduce cost and change operations

how can the legislation change the businesses aims and objectives

new laws may change businesses objectives

what internal reasons can be the reason why the business changes its aims and objectives

a merger or takeover, new management team or new management director

how does the business changes its aims and objectives as it evolves

focusing on survival or growth

entering or exiting markets

growing or reducing the workforce

increasing or decreasing the product range