Topic 2.1.2 Changes in Business aims and objectives

Question 1

Why do the aims and objectives of the business change as the business evolve?

Answer 1

Response to the changes in market conditions-For example if the market shrinks,the business may alter its aims and objectives an be focused on survival or targeting new markets.More competitors in amrket.This means that business amy be more fouced on increasing their market share.As a result leads to more profit.
Changes in technology-This is because for business to keep up the demand of products from their business,they need to meet customer needs.As a result,they may alter their aims and objectives to investing into new equiment and training staff to please customers and increase revenue.
New legislation-Adjsut their aims and ibjectives to new laws.For example,in 2016,a new living wage was introduced meaning that comoanues had to pay for higher wages.As a result,increasing the costs of the business.

Question 2

How does performance change the aims and objectives of a business?

Answer 2

A dip in performance means that customers aren’t following their objectives of increasing sales revenue.As a result it make focus it aims and objectives in survuval of the business then.

Question 3

How does Internal changes affect the business

Answer 3

Internal changes.If a new management comes in this means that the standards and the operations of the business will change since the mangers might have different standards and priorities for the business.As a result,the new manager may focus its objective on growth instead of profit maximisation

Question 4

How business aims and objectives change as businesses evolves?

Answer 4

Aims might change whether its aim is to survive or grow.For example,a new start up business may be focused on survival-since they are not even an established business or well know so will be focused on just making more sales and less costs.As a result,once it become stable it may focus on its objective on maximising profits.
Business may see shrinkage in the market they are in and so mat not enter a new one.As a result,objective may shift onto growth then.
Change size of its workforce-Expanding means that business will aim to recruit more staff,.If business takes over from another firm it may reduce the size of tis workforce.
Change size of its product range-Product seeing well,increase product range of that product.Products in a range that don’t sell well,aim to decrease product range and concentrate on promoting its best selling products.