IGCSE, A Level Business Student Forum

It may change when new managment takes control and introduces new strategy
for example when a new CEO takes charge of slothing store they may change there objectives from expanding physically and expanding in online stores
this happens when nw leaders wants to set goals they think will help the business become better, this also helps the business become flexible as they adjust to new challenges and changes, as there flexible they adapt to trends better which gives them a competitive edge and gain more market share

KN: One internal factor that might make a business change its objectives is a change in leadership.

AP: For example, if a new CEO takes over at a company like Microsoft they might shift the focus from selling software to expanding cloud services.

AN: This happens because new leaders often bring fresh ideas and different priorities. They might want to modernize the business or fix past mistakes.

KN: Business objectives change due to a change in the leader of the business.
APP: For instance, when new CEOs take over, they often change they objectives for example from profit maximisation too growth.
AN: Due to this the business will be able to increase their customer base due to which their sales, revenue and profits will increase as well which can be reinvested in the business to cover the costs of initial expansion.

[kn] business objectives can change due to change in competition level.
[app] for instance, redbull might change their objective as they had high competition before and low competition currently.
[an] this can bring fresh and new ideas, leading to boost in sales, resulting in a larger market share.

business objectives can change due to a shift in the business leadership .For eg a new CEO may set up strategic direction by prioritizing different goals such as shifting focus from rapid expansion to sustainable growth .This will boost the brand reputation ,attract enviroment consious customers and investers and thus gain customer loyalty.Moreover,stopping the hasty expansion will allow the busness to strengthen its exsisting operations leadin to better cost control nd hence higher profit margins .

Knowledge Point:
A business might change its objectives due to a change in financial performance. If profits fall or costs rise, the business may shift focus from growth or expansion to survival, cost control, or efficiency to protect itself financially.

Application:
For example, Marks and Spencer in the UK faced falling sales and profits in the mid 2010s. Because of this, the company changed its main objective from expanding its stores and product range to improving efficiency, cutting costs, and stabilising its finances before trying to grow again.

Analysis:
First, by focusing on cost control, M&S could reduce unnecessary expenses and protect its profits.
Second, stabilising finances helped rebuild investor confidence and ensured the company could survive tough market conditions.
Third, once profits and stability improved, M&S could shift back to growth, such as opening new food stores and improving its online presence showing how a financial issue directly shaped the company’s short-term and long-term objectives.

[KN] A business might change its objective due to business growth.
[APP] For example a small shop that grows into a chain may change its objective from survival to profit maximization or more sales.
[AN] Hence this will result in the business improving its image, it will reduce its goods prices to attract customers and will create customers loyalty which will create a good image (of the business) for the customers.

{KN}A change in leadership is an internal factor that can cause a business to change its objectives.
{APP}For example, when Apple’s leadership changed from Steve Jobs to Tim Cook, the company’s focus shifted from product innovation alone to also emphasizing sustainability and corporate responsibility. This shows how new leadership can bring different priorities that influence the company’s overall objectives.
{AN}A new leader may want to restructure operations or pursue new strategies that reflect their vision. This could lead to a shift from short-term growth to long-term stability or ethical goals. Such changes help the business remain competitive and aligned with its internal direction.

[kn] One internal factor could be a change in business ownership or leadership.

[App]For example, if a new CEO takes over a company, they might set new goals such as expanding online sales.

[an] This can shift the company’s priorities change how resources are used and influence the overall direction of the business leading to new objectives being set.