IGCSE, A Level Business Student Forum

Q2 Analyse the situations in which survival can be the right business objective. [6]

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

[KN]
[AN]
[AN+]

[KN] if the business is in the declining stage
[AN] this makes the business more incline to survive instead of making higher profits and avoid bankruptsy
[AN+] this makes the business run for longer times and have the potential to revive itself one day for eg masks during covid 19

[KN] if the business is facing massive competition
[AN] this would decrese its market share and make it hard to survive
[AN+] this would be solved by cutting down its costs

[KN] increased competition
[AN] survival of firm could be hard as maintaining market share is not easy thus it would decrease.
[AN+] Once the competitive landscape stabilises the focus can shift to growth and profitability.

[KN] Economic issues
[AN] When the economy is going through a recession business face many losses and reduced demand thus survival would be important factor
[AN+] Surviving the economic conditions can position the company for growth when conditions become more stable

[KN] Financial Distress
[AN] Companies that are facing financial difficulties—such as growing debt, dropping sales, or issues with cash flow—may have to make survival their top priority.
[AN+] Through achieving financial stability, they can avert bankruptcy and strive towards enduring viability.

[KN] Natural Disasters
[AN] Business operations can be disrupted by pandemics, natural disasters, and unanticipated crises.
[AN+]In these situations, businesses' priority is to survive, working to secure their assets, get out of the crisis, and make sure their stakeholders and employees are safe.

[KN] Startup or new businesses
[AN] These businesses may face uncertainty and the need to establish themselves in the market.
[AN+] Survival allows them to secure their position, build a customer base, and improve their business model.

[KN] Global crisis or recession
[AN] Unpredictable events, such as wars, or natural disasters, can disrupt normal businesses operations.
[AN+] In such times, companies may need to change their objectives temporarily to focus on survival by ensuring the safety of employees, and adapting to changing circumstances.

[kn]during times of recession [an] since all business activities are affected during a recession due to fall in aggregate demand the most suitable obj is survival[an+] thus working for survival during such low economic periods is the most suitable choice

[kn] high competition [an] the more the competition the more the pressure the business may be driven out of the market [an+] thus to stay survive in such times is the most optimal as other objectives can come at the cost of the business failing

[KN] declining stage
[AN] when the sales of the business is declining
[AN+] then business should only focus on survival as their could be a boost in the future for the business

[KN] recession
[AN] when the all the business are losing their sales and countries output is in decline
[AN+] then they should only survive as they can expand when the economy position is improved

[kn]d During a recession
[an] When there is a fall in aggregate demand the businesses or losing sales
[an+] thus the business should survive in these economic issues.

[KN] increased competition
[AN] keeping market share is not easy and when there is competition it is very hard
[AN+] Thus the business should try to survive in this circumstance by cutting down its cost

[KN]At the introduction stage of the business
[AN]when a new business enters the market,it faces a lot of competition and has to lower its COP to survive
[AN]Thus this can help the business to grow further and aim for profit maximization


[KN]During a recession
[AN]In the period of recession where output is falling all businesses aim for survival so that after this time they can grow again
[AN]thus this can help a businesses from declining

[KN] Brand reputation crisis.
[AN] Companies facing a severe decline in brand image due to maybe scandals , rumors etc may prioritize survival by implementing measures to eliminate such accusation's.
[AN+] Thus if the business is able to pass such a difficult stage this will delete the thought of closing the company which have other negative factors related to it.


[KN] Startup Businesses.
[AN] If a new businesses successfully survives it will ensure growth in a profitable manner
[AN+] Thus this can further help businesses secure its place and achieve goals like expanding etc.

[KN] times of recession when demand is lower for businesses offering normal goods
[AN] Thus, output will decrease
[AN+] Thus total revenue would also fall

[KN] at the introduction stage of a non-innovative product
[AN] high competition levels
[AN+] low prices will have to be charged

[kn] times of recession when demand is lower for business when offering the usual goods
[an] as economy is not at a normal stage thus output and sales will decrease
[an+] thus their main aim is to survive so after such time they can grow again rather then decline
[kn] at the introduction stage (of non-innovative products)
[an] as during such time there might be high competition levels
[an+] so in order to stay in the competition business must lower prices leading to having a simple aim of survival and not profit

(KN) Times of recession when demand is lower for business offering normal goods
(AN) due to this the business will likely offer lower prices to attract consumer demand,
(AN+) hence due to this measure being taken, survival becomes the right business objective at the time of recession in an economy for a business.

(KN) At the introduction stage of the non-innovative product
(AN) as due to the product being at it's introductory stage and being non-innovative it posses a threat somewhat to the business, as if the product is disliked the demand for it may decrease,
(AN+) hence due to this the business may offer some additional advantages for buying the non-innovative product, in order to survive in the market, as at the time survival was the right business objective.

(kn)time of recession when demand is low for business
(an) business would have to focus on survival af demand falls in the recession
(an+) and later on work on expansion or other objectives
(kn) at the stage of non innovative product
(an) due to high completion in the market
(an+) which would make the business survive with low prices