PART OF THE REVISIONSTATION TEACHING RESOURCES PACK FOR EDEXCEL IGSE BUSINESS 1.1.2 Why business aims and objectives change as businesses evolve: • in response to market conditions, technology, performance, legislation, internal reasons.

1. 1.1.2 Why business aims and
objectives change as
businesses evolve

2. Retrieval Quiz (UNIT 11)
Identify if the following are financial or non-
financial business objectives:
1. Challenge
2. Sales
3. Control
4. Market share
5. Independence

3. Retrieval Quiz Answers
1. Challenge NON-FINANCIAL
2. Sales FINANCIAL
3. Control NON-FINANCIAL
4. Market share FINANCIAL
5. Independence NON-FINANCIAL

4. You will need worksheet 1.1.2 for this lesson

5. Lesson objectives
Why business aims and objectives change as
businesses evolve in response to:
•market conditions
•technology
•Performance
•Legislation
•internal reasons

6. Starter
• Do you currently have any of these aims?
To get a better phone for your birthday
To pass your business iGCSE
To get a part-time job
To become famous on social media
To learn the guitar or the piano
To learn another language
• Are these the same aims that you had in primary school?

7. Why business aims and objectives
evolve

8. Reasons that aims and objectives evolve
introduction
• Some reasons why the aims and objectives of a
business will change over time, these are the main 5
that the exam board want you to know about:
1. Market conditions
2. Technology
3. Performance
4. Legislation
5. Internal reasons

9. #1 market conditions
• A business may change its aims and
objectives in response to market
conditions
• For example there may be lots of
new competitors entering the
market, this will mean the business
has to change their aims
• There may be increased
unemployment in a country which
is affecting the demand for the
business's goods or services
The music market is very competitive
with new entrants coming into the
market on a daily basis would this make
established artists change their
objectives?

10. #2 technology
• A business may change its aims
and objectives in response to
new technology
• This may be in a production
process, for example a new type
of vending machine
• This may also be technology in
the products that it makes
• It could also be technology used
for communication
What might be an objective for a
business that has just bought 10 new
vending machines to sell their goods
in?

11. #3 performance
• A business may change its aims and
objectives in response to its own
performance
• For example, if a business has had
a good year of sales and made a
profit it may decide to grow and
expand and take on more staff
• What decisions might the business
owner take if the business has had
a bad year financially?

12. #4 legislation
• A business may change its aims
and objectives in response to
legislation
• This can mean new trade laws,
minimum wage rates, consumer
laws or employment laws
• New business objectives might
include reducing the size of the
workforce because of the
increase in the minimum wage
rates
Click the graphic to look at minimum wage rates across the world

13. #5 internal reasons
• A business may change its aims
and objectives in response to
internal reasons within the
business
• These could be personal goals of
the owner
• For example, if the business
expands it may want to have
objectives of higher market
share, increased revenue or
higher production levels
For example a business may
change its objectives because it
wants to enter a new _____?

14. Plenary Quiz
Identify the reason the business aim has evolved:
1. The business has introduced new robotics to the manufacturing
process
2. The government has introduced new laws that means the
business has to change how it operates
3. There are new entrants to the market that the business trades in
4. The business has merged with another business in the same
industry
5. The business is selling less because of the current economic
climate

15. Plenary Quiz Answers
1. The business has introduced new robotics to the
manufacturing process TECHNOLOGY
2. The government has introduced new laws that means the
business has to change how it operates LEGISLATION
3. There are new entrants to the market that the business
trades in MARKET CONDITIONS
4. The business has merged with another business in the same
industry INTERNAL REASONS
5. The business is selling less because of the current economic
climate PERFORMANCE

17. Case study for sample question 1

18. Sample question 1

19. Answer question 1