2.1.2- changes in business aims and objectives Flashcards
why do business aims and objectives change in response to market conditions?
if a market grows a company may alter its aims to focus on growing sales
if a market shrinks a company might be more focused on survival or targeting new markets
if a market gets more competitive a company might focus more on maintaining its market share or maximising sales rather than maximising profits or growing its market share
why do business aims and objectives change in response to technology?
company needs to keep up to date with technology
may need to alter their aims and objectives so they spend more money on getting new equipment and training staff rather than investing in growth
why do business aims and objectives change in response to performance?
if it sells more than expected one month, future sales objectives might be increased to match this
why do business aims and objectives change in response to legislation?
if there’s a new living wage, a company needs to alter their profit aims and objectives as they’d have to pay higher wage.
why do business aims and objectives change in response to internal changes? ( example )
if the management changes then the new managers might have different priorities for the business which will cause its aims and objectives to be changed
how might business aims and objec change if wanting to focus on survival and growth?
new start up businesses would focus on survival but once it’s stable it may focus on growth and maximising profits
if business struggles its aims could focus on survival again
how might business aims and objectives change if entering or exiting markets?
entering a new market- by targeting a different group of people- could be because the business is growing or because the existing markets are shrinking
if their products aren’t selling well in a particular market they may change their aims so that they exit that market
how might business aims and objectives change if growing or reducing the workforce?
if a business is expanding it might aims to recruit more staff.
if a business has recently taken over another it might aim to reduce workforce so multiple people aren’t carrying out the same role
how might business aims and objectives change when increasing or decreasing product range?
if a business has a product that’s selling really well it might aims to bring out more products in the same range with different features
if it has products in a range that don’t sell well it might aim to decrease product range and concentrate on promoting and growing its best selling products
