22 Explain why a business might change its objective from survival to growth

[Sir Afzal Shad]

22 Explain why a business might change its objective from survival to growth [3]

[Subhan Zafar]

{KN}A business might change its objective from survival to growth once it has stabilised financially and established a customer base.
{APP}For example, a new café in Karachi may initially focus on survival to cover costs and attract regular customers. After the first year, once it is profitable and has loyal customers, the café might shift its objective to growth, such as opening a second branch or expanding its menu.This change allows the business to increase revenue, market share, and brand recognition, moving beyond merely staying afloat.
{AN}By focusing on growth, the business can take advantage of new opportunities, invest in innovation, and improve long-term competitiveness, ensuring sustainable success beyond just short-term survival.

[Shaliza khawaja]

they may change it when it has gained enough experience and resources to expand its operations
for example a clothing store has gained enough customers to open a new store in other cities
this helps a business reach wider range of customers and boost profit, this also spreads risk as when one store faces faliure the other can help it through it, when a business focuses on growth it would also attract investors and creat more stabitily

[Abdul Hadi]

KN: Business objectives can change timely depending on market performance and conditions.
APP: for example a newly opened store in its first year focuses on survival and creating a loyal customer base, and if it is successful in doing so it may change its objective towards growth and expand by opening newer branches or launching new products.
AN: It allows the business to increase market share rather tahn covering costs, It also allows the business to achieve economies of scale increasing its competitiveness, moreover aiming on expansion allows the business to attract more investors as they also see a growth opportunity.

[shamaim shakeel]

Knowledge Point:
A business may change its aim from survival to growth once it becomes stable in the market. At the start, the business only wants to stay alive and avoid losses. But when it starts earning regular profit and builds a name, it can aim to grow bigger like opening more branches or increasing sales.

Application:
For example, Careem first focused on survival when it started and faced strong competition from Uber. But after getting many regular users and becoming trusted by people, the company changed its aim to growth. It began adding new services like food delivery and online payment to expand its business.
Analysis:
This shift allows the business to use its existing brand reputation and customer trust to generate higher revenue and capture new market opportunities. By focusing on growth, Careem can strengthen its market position, attract investors, and reduce the risk of being overtaken by competitors.

[Muaz Aamir]

KN:
A business may change its objective from survival to growth once it becomes financially stable and confident about its future.

AP:
For example, a small bakery in Karachi might first focus on survival during its early months, then aim to grow by opening new branches once it starts earning steady profits.

AN:
Higher sales and profit levels allow expansion. A stronger customer base gives the business stability to take more risks. Better cash flow helps it invest in new equipment or products to grow further.

[Shuraim Arif]

(KN) A business might change its objective to growth once it has become stable in the market and starts being noticed by customers.
(APP) For example, ABC, a business that started 2 months ago may switch objectives to growth after it has stabilized itself in the market and is able to challenge competitors.
(AN) Once switched to growth, the business would increase prices, which wouldn't effect the demand a lot as it had already attracted a loyal consumer base in its survival phase, meaning the stable amount of sales, plus the increase in price would altogether lead to a higher profit for the business.

[Arham Qadri]

[KN] Because it has become stable.
[APP] For example a shoe business like Nike would want to grow because it has gained customers loyalty and has become stable so that it could increase its profit
[AN] Hence when the business would finally grow it would increase sales, increase profit generation, improve its image and gain even more loyalty from customer which would further increase their sales

[Aarib Saad]

(KN)Firms might have left the market.
(APP)For instance, due to saturation of a product that was previously trendy, it is now going towards decline stage.
(AN)Thus, opening up the opportunity for a business which was previously small to be able to catch consumer attention, making it so it will now be able to earn more revenue due to higher consumer base, giving it the financial capabilities to expand through means like advertising.

[Wahaj Ashraf]

[KN] The business has been established for years and is now stable because of which the objective shifts towards growth,
[APP] After operating successfully for two years a small bakery may have built a loyal customer base and steady cash flow allowing it to aim for expansion by opening another branch.
[AN] Thus changing the objectives will help the business from economies of scale attract more customers and increase longterm profitability ensuring continued success

[masabtahir]

kn] it is when business has created a market share in his product within the market
ap] for e.g cheezious brand of pizza first it aim to survive and when the customer base is created then it aims shift to growth of its operations
an] this will make them easy to grow make new branches of pizza restaurant as in growth expense increases at that point they will having enough capital for growth and management will be much strong to manage the growth of the business