Changes in Business Aims & Objectives Flashcards

All 6 cards in this deck

Name the five reasons why business aims and objectives change as a business evolves.

Market conditions, technology, performance, legislation and internal reasons.

Give one example of an 'internal reason' for changing business aims and objectives.

A change of owner or the owner's personal goals changing, e.g. wanting more leisure time.

How might new legislation change a business's objectives?

It must set objectives to meet the new legal rules, e.g. changing packaging or raising wages to comply.

List four ways aims and objectives may change as a business evolves.

Focus on survival or growth; entering or exiting markets; growing or reducing the workforce; increasing or decreasing the product range.

Give one reason a business may increase its product range.

It may attract more customers because there is more likely to be a product that suits different consumer needs, so the business makes more sales.

True or false? Poor performance may cause a business to switch its objective from growth to survival.

True. Falling sales or profits often make survival the immediate priority.