Why do they change over time?
- business is dynamic
- external factors may force a business to change aims and objectives
- e.g. changes in the economy, legislation, technology, competitive environment
- internal factors may force a business to change aims and objectives
- e.g. a business may recruit a new Chief Executive who has different priorities
How do they change?
- by changing the size of the workforce e.g. with more self-service tills, some supermarkets may reduce the size of the workforce
- by changing the size of the product range e.g. a car maker might stop making cars which don’t sell well
- by focussing on survival or growth e.g. in the first year or in times of economic downturns a business is likely to focus on survival, later on they may focus on growth
- by entering or exiting markets e.g. a business may withdraw from a market if it is no longer profitable
Now try answering this question to test yourself.