Changes in Business Objectives
- Business objectives may change over time due to a number of internal factors
- As a business grows its objectives may change from survival to profit or sales maximisation
- Retiring business owners may choose to spend less time running the business
- Its objective may change from increasing market share to maintaining financial security
- A new leader or manager may set challenging targets or implement their preferred social objectives
- Business performance can require a change in objective
- E.g. A business that has succeeded in becoming the market leader may now decide to focus on maximising profit
- E.g. A business that has succeeded in becoming the market leader may now decide to focus on maximising profit
- Businesses may also need to change their objectives in response to external factors
Impact of External Factors on Business Objectives
External Factor |
Explanation |
Example |
Market conditions |
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Technology |
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Legislation |
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Exam Tip
You may be asked to outline an impact of changing business objectives. Look for clues in the case study about the effects on stakeholders such as employees, owners or suppliers. You will need to use this context to support your answer.