How does the level of competition affect a business's objectives?

A business facing strong competition may focus on survival or keeping customers. A business with little competition can aim for higher profit.

How do the objectives of not-for-profit organisations differ?

Not-for-profit organisations aim to achieve a social purpose rather than profit. A charity might aim to help as many people as possible.

Why do objectives change as a business evolves?

Once a business has survived, it can aim for growth and profit. Changes in the market or economy may also force new objectives.

How might the objectives of a start-up differ from those of an established business?

A start-up usually aims to survive and break even. An established business may aim to dominate its market or expand abroad.

AQA GCSE Business 8132

Business in the Real World

Topic overview What a business is and why people start one Goods, services, needs, wants and factors of production Business sectors, entrepreneurs and a changing business environment Sole traders, partnerships, limited companies and not-for-profit organisations Business aims and objectives Why business objectives differ and change Stakeholders and their influence on businesses Factors affecting business location Business planning and basic financial terms Expanding a business and economies of scale

Influences on Business

Topic overview E-commerce and digital communication Ethics, the environment and sustainability Interest rates, employment and consumer spending Globalisation and exchange rates Employment, health and safety and consumer law Competition, risk and uncertainty

Business Operations

Topic overview Job, flow and lean production Managing stock: just in time and just in case Suppliers, procurement, logistics and supply chains Quality control, quality assurance and TQM Customer service and the sales process

Human Resources

Topic overview Organisational structures, span of control and delegation Recruitment, selection and contracts of employment Financial and non-financial methods of motivation Induction, on-the-job and off-the-job training

Marketing

Topic overview Identifying and satisfying customer needs Market segmentation Purpose of market research and primary and secondary research Market research methods and interpreting findings Pricing methods and factors affecting price New products, USP, brand image and the Boston Matrix Product life cycle and extension strategies Promotional methods and the promotional mix Channels of distribution, e-commerce and m-commerce The integrated marketing mix

Finance

Topic overview Sources of finance Cash flow and cash flow forecasts Financial calculations and average rate of return Break-even charts and margin of safety Income statements and statements of financial position Profit margins and judging financial performance

Business in the Real World

Why business objectives differ and change

3 things to know
Both papers

Overview

How size, competition and not-for-profit status shape objectives, the move from survival to growth, market dominance, international expansion, ethical aims and the effect of an economic downturn.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

How do the size of a business and the competition it faces shape its objectives?

Key term

Why do objectives differ between businesses?

Key term

How does the size of a business affect its objectives?

Questions from this subtopic

Each one with the model answer underneath.

1
Why do objectives differ between businesses?
Model answer
Objectives depend on the size of the business, the competition it faces and the type of business. A small new firm and a large plc usually want different things.
2
How does the size of a business affect its objectives?
Model answer
A small business often aims simply to survive and cover its costs. A large business may aim for growth, market share or shareholder value.
3
How does the level of competition affect a business's objectives?
Model answer
A business facing strong competition may focus on survival or keeping customers. A business with little competition can aim for higher profit.
4
How do the objectives of not-for-profit organisations differ?
Model answer
Not-for-profit organisations aim to achieve a social purpose rather than profit. A charity might aim to help as many people as possible.
5
Why do objectives change as a business evolves?
Model answer
Once a business has survived, it can aim for growth and profit. Changes in the market or economy may also force new objectives.
6
How might the objectives of a start-up differ from those of an established business?
Model answer
A start-up usually aims to survive and break even. An established business may aim to dominate its market or expand abroad.

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Business in the Real World

Influences on Business

Business Operations

Human Resources

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