Aims and objectives

retrenchment: when a business decreases the scale of it’s operations by closing some of it’s stores and making employees redundant 

targets for growing business:

  • increase sales

  • increase profit margins

  • increase market share

  • increase workforce

  • enter new markets

targets for struggling business:

  • retrenchment

  • maintain market share

  • reduce fixed/variable costs

  • decrease product portfolio

  • break even 

How business aims and objectives change:

  • survival → retrenchment

  • growth → merger/takeover; globalisation

  • entering markets → extend product range

  • exiting markets → reduce product range; leave non-profitable markets

  • growing workforce → employ more staff

  • reducing workforce → sack staff, replace with technology

  • increase product range → product development and launch 

  • decrease product range → limit innovation costs and certain product developments