2.1.2 Changes In Business Aims and Objectives

Question 1

Name 5 Causes That Can Change Business Aims and Objectives?

Answer 1

• 1) Technology
• 2) Market Conditions
• 3) Business Performance
• 4) Legislation
• 5) Internal Reasons

Question 2

Name a Internal Reason why Business change their Aims and Objectives?

Answer 2

• A Internal reason is because the business is growing or shrinking. This is because They might have to change their aims and objectives due to this reason.

Question 3

Name 3 Things that could make a business change their Aims and Objectives Based on performance?

Answer 3

• 1) Hiring more staff
• 2) Entering new markets
• 3) Increasing product range

Question 4

What Would Happens if the Economy is strong?

Answer 4

• If the economy is strong then Incomes will rise and Consumers will have more disposable income to spend.

Question 5

What Would Happens if The Economy is Hit by Recession?

Answer 5

• 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.

Question 6

How Is Technology Going To Change Aims and Objectives For a Business?

Answer 6

• Adapting to New Technology or The Innovation of New Products Is Made Possible by New Technology.

Question 7

How Is Market Conditions Going To Change Aims and Objectives For a Business?

Answer 7

• The Economic Climate may Change the Level of Demand and Spending in The Market.

Question 8

How Is Legislation Going To Change Aims and Objectives For a Business?

Answer 8

• Legislation May Force a Business to change its products and services.

Question 9

How Is Internal Reasons Going To Change Aims and Objectives For a Business?

Answer 9

• A Change in Working Culture or the Business Leader is Also Likely to Influence its Objectives.

Question 10

How Is Business Performance Going To Change Aims and Objectives For a Business?

Answer 10

• Business Will have times where they are most or less profitable.

Question 11

Give a Impact on a Business from reducing the Size Of Its Workforce (3 Marker)

Answer 11

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)