Pearson Edexcel · GCSE · Business
Course version: 1BS0 · Version from Sept 2017
How business aims and objectives change as businesses evolve: ● focus on…
Full specification wording
Changes in business aims and objectives: How business aims and objectives change as businesses evolve: ● focus on survival or growth ● entering or exiting markets ● growing or reducing the workforce ● increasing or decreasing product range.
When a business evolves, the practical ways its objectives change are visible in its strategic actions.
Checked against the Pearson Edexcel 1BS0 specification (opens in a new tab) on .
- Point 2 of 2
Study notes
From the checked teaching notes for this specification point.
The idea
When a business evolves, the practical ways its objectives change are visible in its strategic actions. A start-up may initially focus on survival, but as it establishes itself, the primary aim often shifts towards growth. Conversely, an economic crisis might force a return to survival mode. Evolution also dictates whether a business aims at entering new markets to expand its customer base or exiting unprofitable markets to consolidate resources. Furthermore, these shifting aims directly impact human resources, leading to objectives focused on growing or reducing the workforce. Finally, a business might alter its operational targets by increasing its product range to diversify risk or decreasing it to focus on core, profitable items.
What earns the marks
- Explain how a business transitions its primary focus between survival during difficult periods and growth during prosperous times.
- Analyse the strategic decision to enter new markets for expansion versus exiting markets to minimise losses.
- Evaluate the impact of changing objectives on human resources, specifically the need for growing or reducing the workforce.
- Assess the rationale behind increasing a product range to spread risk or decreasing it to focus on core competencies.
Common mistakes and how to put them right
Assuming growth is always the ultimate objective for every business.
Put it right: Acknowledge that survival or consolidation can be the primary objective during economic downturns or periods of intense competition.
Treating entering and exiting markets as purely financial decisions.
Put it right: Explain that these decisions are strategic objectives tied to the broader evolution and risk profile of the business.
Stating that reducing the workforce is only a sign of business failure.
Put it right: Recognise that reducing the workforce can be a strategic objective to improve efficiency, often linked to automation.
Exam tips
- Link the 'how' (such as reducing the workforce) to the 'why' (such as poor financial performance) to build strong analytical chains in your answers.
- Use the specific actions mentioned in the case study, such as launching new products, as evidence of a business shifting its objectives towards growth.
- Consider the negative impacts of these changes, such as the effect on employee motivation when the objective shifts to reducing the workforce.
Try the lesson
The start of the Changes in business aims and objectives: How business aims and objectives change as businesses evolve: ● focus on survival or growth ● entering or exiting markets ● growing or reducing the workforce ● increasing or decreasing product range. lesson, made from checked teaching notes for this specification point.
Have a go first
A small local café has been operating successfully for five years and has built a large, loyal customer base. How is its primary business objective most likely to change as it evolves?
Listen
When a business evolves, the practical ways its objectives change are visible in its strategic actions. A start-up may initially focus on survival, but as it establishes itself, the primary aim often shifts towards growth. Conversely, an economic crisis might force a return to survival mode. Evolution also dictates whether a business aims at entering new markets to expand its customer base or exiting unprofitable markets to consolidate resources. Furthermore, these shifting aims directly impact human resources, leading to objectives focused on growing or reducing the workforce. Finally, a business might alter its operational targets by increasing its product range to diversify risk or decreasing it to focus on core, profitable items. A strong answer earns marks for these points. Explain how a business transitions its primary focus between survival during difficult periods and growth during prosperous times. Analyse the strategic decision to enter new markets for expansion versus exiting markets to minimise losses. Evaluate the impact of changing objectives on human resources, specifically the need for growing or reducing the workforce. Assess the rationale behind increasing a product range to spread risk or decreasing it to focus on core competencies. A common slip: Assuming growth is always the ultimate objective for every business. Instead, Acknowledge that survival or consolidation can be the primary objective during economic downturns or periods of intense competition. Exam tip: Link the 'how' (such as reducing the workforce) to the 'why' (such as poor financial performance) to build strong analytical chains in your answers.
See it
Label the diagram
Some boxes have lost their names. Pick the right name for each number.
1Box 1
2Box 2
3Box 3
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