2.1.2 Changes in Business Aims and Objectives

Question 1

What are some Financial Aims for businesses?

Answer 1

• Profit
• Sales revenue
• Market share
• Financial security

Question 2

What are some Non-Financial Aims for businesses?

Answer 2

• Social objectives, e.g. positive impact on community or the
  environment
• Personal satisfaction
• Challenge
• Independence / control

Question 3

What is the difference between an aim and an objective?

Answer 3

• Aim = long term goal of a business, e.g. become the
  market leader
• Objective = short to medium term target that helps the
  business achieve its aim

Question 4

External reasons for changes in aims and objectives

Answer 4

• Changing market conditions:
  The level of competition
  New competitors
  entering the market
  Market share
• Technology:
  E-commerce
  Technological advancements and new opportunities
• Performance
  What is profit like?
  Are there cash flow
  issues?
  Poor ratings?
• Legislation