changes in business aims and objectives Flashcards
(4 cards)
why do aims and objectives change
market conditions- like rise of new competitors
technology- e-commerce or automation
business performance- low profits or high growth
legislation- environmental laws
internal reasons- new leadership, resources
HOW no not why do businesses change
focus on survival (eg during recession) or growth (if performing well)
entering new markets (international) or exiting failing ones
growing or reducing the workforce based on automation or expansion
increasing or decreasing product range to respond to demands or cut costs
why would a business expand its workforce
business expansion- more staff needed for more demand
enter new markets eg- hire employees with specialist skills (foreign speakers for international markets)
innovation or new products- more staff for r&d, production or marketing
improving customer service
why might a business reduce its workforce
failing demand or declining sales
cost cutting
automation or tech
restructuring -mergers/takeovers may lead to duplicated roles that get cut
