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Changing aims and objectives
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Aims and objectives are not set once forever. As a business grows and its world changes, its aims change too.
Why aims change
Market conditions: new competitors or changing demand.
Technology: new products or ways of selling.
Performance: doing better or worse than expected.
Legislation: new laws.
Internal reasons: such as a new owner or manager.
Technology: new products or ways of selling.
Performance: doing better or worse than expected.
Legislation: new laws.
Internal reasons: such as a new owner or manager.
How aims change
Focus on survival (in hard times) or growth (when doing well).
Entering or exiting markets.
Growing or reducing the workforce.
Increasing or decreasing the product range.
Entering or exiting markets.
Growing or reducing the workforce.
Increasing or decreasing the product range.
An example
A start-up aims to survive. Once established, it aims for growth and new markets. In a recession it may switch back to survival, cutting products and staff.
A toy maker's sales fall sharply because of a new competitor. How might its objectives change?
- Market conditions have changed.
- It may focus on survival rather than growth.
Answer: From growth to survival, perhaps cutting its range.
Aims change because of market conditions, technology, performance, legislation and internal reasons. Changes include survival or growth, entering or exiting markets, changing the workforce and the product range.
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