How might poor performance change a business's objectives?

Falling sales or losses may push a business to cut costs and aim simply to survive. Unprofitable products or branches may be closed.

How might strong performance change a business's objectives?

A business beating its targets may set more ambitious ones, such as expanding overseas. Higher profits provide the finance to pursue growth.

How can legislation lead a business to change its objectives?

A new law can raise costs or ban a product, forcing a change of direction. The UK soft drinks levy of April 2018 led many makers to cut the sugar in their drinks.

Edexcel GCSE Business 1BS0

Enterprise and Entrepreneurship

Topic overview The dynamic nature of business Risk and reward The role of business enterprise

Spotting a Business Opportunity

Topic overview Customer needs Purpose and methods of market research Market research data and its reliability Market segmentation The competitive environment

Putting a Business Idea Into Practice

Topic overview Business aims and objectives Business revenues, costs and profits Cash and cash flow Sources of business finance

Making the Business Effective

Topic overview Business ownership and limited liability Franchising as a start-up option Business location The marketing mix Business plans

Understanding External Influences on Business

Topic overview Business stakeholders Technology and business Legislation and business The economy and business Responding to external influences

Growing the Business

Topic overview Organic and inorganic business growth Public limited companies and finance for growth Changes in business aims and objectives Business and globalisation Ethics, the environment and business

Making Marketing Decisions

Topic overview Product design, life cycle and differentiation Price and pricing strategies Promotion strategies and technology Place and methods of distribution Using the marketing mix to make business decisions

Making Operational Decisions

Topic overview Business operations and production processes Working with suppliers Managing quality The sales process

Making Financial Decisions

Topic overview Profit, profit margins and ARR Understanding business performance

Making Human Resource Decisions

Topic overview Organisational structures and communication Different ways of working Effective recruitment Effective training and development Motivation in the workplace

Growing the Business

Changes in business aims and objectives

3 things to know
Paper 2

Overview

Why objectives change with market conditions, technology, law and performance, entering and exiting markets, and changing the size of the workforce or the product range.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

Why do a business's aims and objectives change over time?

Key term

How can a change in market conditions alter a business's objectives?

Key term

How can new technology change a business's objectives?

Questions from this subtopic

Each one with the model answer underneath.

1
Why do a business's aims and objectives change over time?
Model answer
A business's aims and objectives change as it evolves and its circumstances alter. A start-up focused on survival will set new targets once it is established.
2
How can a change in market conditions alter a business's objectives?
Model answer
A new competitor or a fall in demand may force a business to switch from growth to survival. Strong demand may lead a business to aim for a larger market share.
3
How can new technology change a business's objectives?
Model answer
New technology can make a product obsolete, so a business may aim to develop a replacement. New technology can also create chances to enter online markets.
4
How might poor performance change a business's objectives?
Model answer
Falling sales or losses may push a business to cut costs and aim simply to survive. Unprofitable products or branches may be closed.
5
How might strong performance change a business's objectives?
Model answer
A business beating its targets may set more ambitious ones, such as expanding overseas. Higher profits provide the finance to pursue growth.
6
How can legislation lead a business to change its objectives?
Model answer
A new law can raise costs or ban a product, forcing a change of direction. The UK soft drinks levy of April 2018 led many makers to cut the sugar in their drinks.

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Enterprise and Entrepreneurship

Spotting a Business Opportunity

Putting a Business Idea Into Practice

Making the Business Effective

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Revenue = price × .

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Cash inflows means money coming into a business.

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