5 Analyse the situations in which growth can be the right business objective. [6]

[Sir Afzal Shad]

Q5 Analyse the situations in which growth can be the right business objective. [6]

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Possible Structure
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[Salman Khalid]

[KN] when the business is just starting off
[AN] they would need to increase their advertisement to increase awareness
[AN+] this would result in more exposure and increase its sales

[KN] when the business has introduced a new product
[AN] this would result in more exposure needed for the product
[AN+] this would help the product launch and make an instant impact and recoevr its development costs

[Syed Mustafa Ali]

[KN] Startup businesses
[AN] For startups, the main objective is often growth.
[AN+] They need to acquire customers, increase their market share, to establish a presence in the industry.

[KN] Competitive Advantage
[AN] Aiming for growth can help companies build a competitive advantage.
[AN+] Expanding product lines, entering new markets, or innovating can create a stronger market position.

[Kumail Alvi]

[KN] For Startups
[AN] Startups only want to survive, and their main aim is growth as they just came into being.
[AN+] They need to gain customers and establish their name in the market.

[KN] Economies of Scale.
[AN] It might make sense to give growth top priority as a business goal if it can result in significant economies of scale.
[AN+] Larger businesses can frequently produce goods or services more cheaply, increasing their profitability.

[Talha Asim]

[kn] when high amounts retained profits [an] the more the profits the more the chances of successful expansion [an+] this will help them gain more customers and increase market share
[kn] to gain economies of scale [an] when a business expands they advantage from lower long run average cost [an+] this will reduce their cost of production which can enable them to lower prices and increase sales

[ayyan ali]

[kn] growth can be the right option of the business when the business want to achieve economies of scale.
[AN]so they try to increase production volume which reduces the cost per unit thus allow company tomtake advantage of these cost effencies
[AN+]thus the business can have the abilit of more competitve prcing which can increase market share

[KN]to get competitive advantage
[an]AS GROWTH CAN help business establish it self a market leader this ca be important in industries where brand recognition are are important
[AN+]business will able to set industry standards dictate pricing and share the market in your favour

[Syed Raza]

[KN] Economies of Scale
[AN] Growth can lead to cost efficiencies because as you produce more you might be able to reduce the cost per unit which can increase your profit margins.
[AN+] larger businesses can frequently produce goods or services more cheaply, increasing their profitability.

[KN] talent and innovation
[AN] Attracting and retaining top talent often becomes easier when a company is growing.
[AN+] Growth can also provide opportunities for innovation and new projects, which can be exciting and motivating for employees.

[Ibrahim Aamir]

[KN] business startups
[AN] they target growth so they can make their business aware
[AN+] this would lead to more exposure for the business

[KN] achieve economic growth
[AN] they target growth so they can achieve economies of scales e.g purchasing in bulk
[AN+] this would reduce per unit cost for the business

[Ahmed Zunair]

[KN] New Business
[AN] they will need to advertise to create awareness
[AN+] this would lead to increased sales

[KN] New and unique product
[AN] this will result in more sales as it will also have a USP
[AN+] this will help the business make maximum profit later when launching oit

[Maham fatima]

[KN]When any of the business' products is in decline
[AN]Thus by producing new products it can target new markets
[AN]hence risk of the business can be spread

[KN]When COP is high
[AN]By growing, a business may be able to spread cost on large output which can reduce avg cost
[AN]leading to economies of scale

[Hadia Zia]

[KN] To achieve strategic goals.
[AN] Growth is the most appropriate objective when business may want to achieve goals like market dominance or becoming a market leader.
[AN+] Thus these can only be achieved if business has grown in a profitable manner attached with strings like customer loyalty, large market share and USP.

[KN] In order to expand globally.
[AN] Businesses who want to expand internationally may prioritize growth as it would help to access a larger pool of customers and increase its overall revenue and profitability.
[AN+] Thus this can reduce the reliance on on a single market and ensure further growth and differentiation for the business.

[Mahnoor Ali]

[KN] business has passed the introduction stage and people are informed about the products
[AN] Sales start to increase
[AN+] Total revenue rises

[KN] In times of economic growth when income levels are increasing along with the demand
[AN] more affordability and thus, sales will rise further
[AN+] increasing profits that will be reinvested further increasing the market share

[hafsa kashif]

[kn] when the business has passed the introduction stage and the product is well known
[an] thus sales are already increasing along with demand
[an+] so business has enough profit to stat investing in expansion
[kn] when income levels are increasing along with demand during economic growth
[an] therefore the sales will rise further due to more affordability of consumers
[an+] helping to achieve economies of scale which will then help reinvest more profit back into the business leading to expansion

[Shaliza khawaja]

(kn) after passing introduction stage and are informed about the products
(an) as business is receiving higher profit and demand is rising
(an+) they can reinvest that profit into the business through expansion
(kn)in times of economic growth
(an)a income levels are rising with demand business can reinvest it into the business
(an+) reinvesting the money into the business can multiply profit and keep a steady flow of income in the future