IGCSE, A Level Business Student Forum

Q8 Analyse the reasons why business objectives may change over time. [6]

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

[KN]
[AN]
[AN+]

[KN] Technological advancement
[AN] Rapid technological advancements can create new opportunities and challenges.
[AN+] To stay up-to-date , businesses often need to revise their objectives to leverage improve efficiency, or meet digital conversion goals.

[KN] Regulatory and legal changes
[AN] Changes in regulations, laws, or compliance requirements can impact a company's operations.
[AN+] Businesses may need to adjust their objectives to ensure they are in compliance and avoid legal risks.

[KN] Economic Conditions
[AN]Economic variables that can affect a company's financial health include inflation, recessions, and interest rate changes.
[AN+] In response, a business might have to modify its goals in order to control expenses, preserve profitability, or obtain funding.

[KN] Stakeholder Expectations
[AN] Business objectives may be impacted by stakeholder expectations, which include those of consumers, staff members, investors, and the community.
[AN+] Businesses may adjust their goals to reflect these stakeholders' shifting needs and values.

[KN]market changes and trends
[AN] these changes can make a business change its ways as the demand shifts
[AN+] this causes for different competitive strategies and objectives aswell

[KN] economic conditions
[AN] the business may be suffering from debt or high inflation rates
[AN+] they may have to limit certain areas in order to maintain such objectives

[kn]changes in stages of product life cycle [an] a business shifting on one stage will have different objectives than the business on the other stage [an+]they should cash in this opportunity and will decide their objectives accordingly

[kn] changes in consumer tastes and fashion[an] if the demand shifts then the producers must adjust and objectivate accordingly[an+] this can help improve brand loyalty by responding to such changes in time

[KN]market dynamics
[AN]change to customer preferences and demographs can lead to change in market preferences and technological can lead to new opportunities and disrupt existing business models
[AN+]thus this helps the business to stay relevant and competitive

[KN]economic condition
[AN]economic fluctuation such as recession and economic boom can impact consumer spending inflation and interest ratesthese condition can affect business revenue cost structure and access o capital
[AN+]thus adjusting objectives in response to economic condition can ensure financial stability and gowth

[KN] change in markets trends
[AN] demand in the market would be change after a while so the business objectives would be change with the demand as they be working to improve their sales
[AN+] so the business changes it's objectives with the demand in the market

[KN] Economic conditions
[AN] in a declining economy the business would be aiming to only survive but when the demand in the economy is rising they would aim to increase their outputs
[AN+] so the business aims are directly related to the economy conditions

[KN] Customer Needs
[AN] Customer preferences and needs can change. Businesses needs to meet to these changing demands.
[AN+] thus leading to higher output as customers demands will be fulfilled

[KN] Economic Conditions
[AN] economic conditions like inflation, economic growth can affect the progress the business makes.
[AN+] so business need to accordingly set their goals with the economic conditions

[KN] Dynamic Markets.
[AN] If customer wants and desires change frequently, this may force a business to change its objectives overtime in order to stay competitive and ensure customer satisfaction.
[AN+] Thus this will increase the life spam of business and hence will lead to a powerful marketing position.

[KN] Entry of more strong competitors .
[AN] The business may need to change its objectives in order to retain existing customers however if it does not it can experience a wide loss of customer base.
[AN+] Thus this will lead to increased brand image with collection of loyal customers.

[KN]change in buisness life cycle
[AN] focus changes from one aim to another
[AN+] to ensure sustainability

[KN] changes in economic condition ( from recession (survival) to growth)
[AN] Thus the aims will change from surviving to profit maximization
[AN+] lead to owners and shareholders being motivated

[kn] changes in business life cycle (for e.g. from growth where objective might be profit maximization to maturity stage where objective will change towards increased market share)
[an] which is to focus from one goal or aim to another leading to ensured sustainability
[an+] which helps business product survive a longer time in the business
[kn] change in economic conditions (like from recession where aim will be survival to growth)
[an] thus aims will change from survival to growth and then further increase in market share
[an+] changing according to economic conditions helps shareholders and owners stay motivated

[KN]Customer Needs
[AN] hence fulfilling market demand
[AN+] giving competitive advantage

[KN]Market Trends
[AN]the rise of a new technology might render an existing product or create opportunities for innovative solutions.
[AN+] hence creating loyal customers

(kn) customers needs might change over time
(an) business would need to change their products so they don't put off customers
(an+) this would increase their cost temporarily but later on the revenue can cover it up
(kn) economic conditions
(an) the economy might be in recession due to which the abject might change from profit maximisation to survival
(an+) they can later revive when the economy starts doing better