2.1.2 Changes in business aims and objectives

• Business aims include maximizing profits or expanding market share
• Business objectives are specific, measurable targets such as increasing sales by 20
• What are internal factors that can cause changes in business aims and objectives?

  Leadership, finances, technology
• What might a business aim to do if consumer demand declines?

  Reduce costs by 10%
• Why do businesses adjust their aims and objectives in response to market conditions?

  To remain competitive and profitable
• Stakeholder expectations influence a business's aims and objectives.


  True
• Customers aim for high-quality products or services and good value.


  True
• What might a business facing pressure from environmental groups need to shift its aim towards?

  Sustainability
• Match the feature with its example:

  Business Aims ↔️ Maximize profits

  Business Objectives ↔️ Increase sales by 20% next year
• External factors causing changes include market trends, competition, and government regulations
• If a business faces increased competition, it may need to shift its aim to defending market share
• If a business faces increased competition, it may need to shift its aim from maximizing profits to defending market share
• What is the overall aim of shareholders in a business?

  Profit maximization
• What might a business aim for if pressured by environmental groups?

  Sustainability
• Match the business aim with its example:

  Maximizing Profits ↔️ Increase sales by 20%

  Expanding Market Share ↔️ Reduce costs by 10%
• What are business aims?

  Overall purpose and direction
• What are business objectives?

  Specific, measurable targets
• What are the two categories of factors causing changes in business aims and objectives?

  Internal and external
• Market trends are an example of an internal factor influencing business aims.

  False
• Market conditions are an internal factor affecting business aims.

  False
• New regulations may cause a business to prioritize operational efficiency over compliance.

  False
• All stakeholders have the same expectations from a business.

  False
• Shareholders aim for profit maximization and business growth
• Suppliers aim for reliable, long-term business relationships
• Business aims are overall goals guiding the business
• Categorize factors causing changes in business aims and objectives:

  1️⃣ Internal Factors

  2️⃣ External Factors
• Market conditions are an internal factor that can impact business aims and objectives.

  False
• What is one way market conditions can compel businesses to adjust their objectives?

  To remain competitive
• Match the market condition with its impact on aims:

  Increased Competition ↔️ Shift from profit maximization to market share defense

  Declining Consumer Demand ↔️ Shift from expansion to consolidation

  New Regulations ↔️ Shift from operational efficiency to compliance
• Employees aim for job security and fair working conditions

  True
• Business aims and objectives remain constant over time

  False
• When formulating new objectives, it is important to use SMART criteria
• Business aims and objectives remain constant over time.

  False
• A startup might initially aim to dominate the market.

  False
• Internal factors include changes in leadership, finances, and technology
• External factors that can cause changes in business aims and objectives include market trends, competition, and government regulations
• Increased competition may cause a business to shift from maximizing profits to defending market share
• Stakeholder expectations can significantly influence a business's aims and objectives
• Business aims are specific, measurable targets.

  False
• Business objectives are short-term, concrete targets.


  True