How business objectives change (Edexcel GCSE Business): Flashcards
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Why business objectives change
Why business objectives change
They adapt based on situation & external factors
Focus of thriving businesses
Focus of thriving businesses
Expansion & increased market presence
Focus of struggling businesses
Focus of struggling businesses
Survival & stability over growth
Expansion objective: products
Expansion objective: products
Introducing new products or services
Expansion objective: markets
Expansion objective: markets
Entering new geographical areas or customer segments
Expansion objective: market position
Expansion objective: market position
Capturing larger market share
Survival objective: product range
Survival objective: product range
Reducing range, focusing on profitable items
Survival objective: break-even
Survival objective: break-even
Achieving break-even sales to cover all costs
Survival objective: costs
Survival objective: costs
Cutting costs significantly
How do economic conditions influence objectives
How do economic conditions influence objectives
They shape whether businesses pursue growth or retrenchment
What is retrenchment
What is retrenchment
Strategic downsizing, reducing operational scale
When does retrenchment occur
When does retrenchment occur
During negative economic conditions
When do growth objectives emerge
When do growth objectives emerge
When economic conditions are favourable
Why prioritise cost reduction
Why prioritise cost reduction
Inflation causes increased expenses, squeezes profit margins
Benefit of cost reduction
Benefit of cost reduction
Can lower prices & attract customers from competitors