Business Aims and Objectives

• Factors affecting objectives

  • competitors
  • Legislation
  • Market Conditions
  • Technology
• As competitors enter the market or current competitors grow a business may change its objectives to become more competitive.
• Legislation may force a business to change its products and services, this may restrict the businesses operations or create new opportunities that may be incorporated into objectives.
• Objectives may link to the adaption of new technology or invention of new products made possible by new technology
• Targets for a growing business

  • expand product range
  • enter new markets
  • increase profits
  • gain larger market share
  • takeover other businesses
  • open new stores
  • increase workforce
• Targets for a struggling business

  • decrease product range
  • exit markets
  • achieve enough sales to break even
  • improve efficiency
  • maintain market share
  • reduce costs
• Aim 


  Something the business is trying to achieve
• Objective


  a more specific breakdown of an aim
• Survival


  generating enough revenue to cover costs and therefore continue to trade.
• Changing Market Conditions


  increase or decrease in competitiors
• Changing technology


  rise of e-commerce led to businesses introducing online sales; click and collect, self service tills.
• Changing Performance


  if a business is not making as much profit as before, will need to change it aims.
• Changing Legislation


  new laws affect costs, changing business aims
• Internal Reasons


  an arrival of a new CEO can affect the direction