Reasons why Business Objectives may Change (Edexcel IGCSE Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
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
Businesses may also need to change their objectives in response to external factors
Impact of External Factors on Business Objectives
External Factor | Explanation | Example |
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Market conditions |
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Technology |
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Legislation |
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Examiner Tips and Tricks
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.
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