2.1.2 Changes In Business Aims and Objectives Flashcards
Write a Mnemonic of The 5 Things that Can change a Business aims and Objectives?
- The - Technology
- Mighty - Market Conditions
- Business - Business
- Needs - New Legislation
- Innovation - Internal Reasons
Name 4 Ways How Business aims and Changes Evolve?
- 1) Focus on survival or growth.
- 2) Entering new existing Markets.
- 3) Growing or reducing workforce.
- 4) increasing or decreasing product range.
Write Down the Mnemonic Of the 4 External factors that Business aims and Objectives Change?
- Cool - Changes In market conditions.
- Cats - Changes in Technology.
- Crete - Changes of Legislation.
- Action - Actions of Competitors.
Name 2 Internal Reasons of changing business aims and Objectives?
- 1) Changes in Management.
- 2) The business Performance.
Name 3 Things that could make a business change their Aims and Objectives Based on performance?
- 1) Hiring more staff
- 2) Entering new markets
- 3) Increasing product range
What Would Happens if the Economy is strong?
- If the economy is strong then Incomes will rise and Consumers will have more disposable income to spend.
What Would Happens if The Economy is Hit by Recession?
- If the Economy is hit by recession then consumer demand Falls and Business Will Downsize. This is because sales will fall and the business will need to reduce its costs to survive.
How Is Technology Going To Change Aims and Objectives For a Business?
- Adapting to New Technology or The Innovation of New Products Is Made Possible by New Technology.
How Is Market Conditions Going To Change Aims and Objectives For a Business?
- The Economic Climate may Change the Level of Demand and Spending in The Market.
How Is Legislation Going To Change Aims and Objectives For a Business?
- Legislation May Force a Business to change its products and services.
How Is Internal Reasons Going To Change Aims and Objectives For a Business?
- A Change in Working Culture or the Business Leader is Also Likely to Influence its Objectives.
How Is Business Performance Going To Change Aims and Objectives For a Business?
- Business Will have times where they are most or less profitable.
Explain one Benefit of a Business increasing its Product Range ( 3 Marker)?
The new Products introduced can appeal to a Wider target market (P) This is because the business will have more brand awareness (S) This leads to Increasing Sales and Sales Revenue due to having a Range of products that appeal to the customer (S)
Explain one benefit of a business entering new markets ( 3 Marker)?
Entering a New market Provides the Business an opportunity to increases sales (P) This is because the business can sell an existing product in a new location (S) This will lead to higher revenue (S)
Give a Impact on a Business from reducing the Size Of Its Workforce (3 Marker)
The Labour Costs Of a Business May Fall (P) This is Because the business will not have to pay Many Wages/Salaries to Worker (S) This Leads To The Break- Even Point of A Business Falling (S)
