businesses can have several objectives, e.g. survival, growth, profit, market share
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1.5.1 Business Objectives
Businesses set goals to guide their actions. These goals can be many and sometimes even conflicting.
Common Objectives
- Survival – staying in business.
- Growth – expanding sales, market reach.
- Profit – earning more than costs.
- Market Share – owning a bigger slice of the market.
Analogy: The Road Trip 🚗
Think of a business as a road trip. The destination (objective) could be a city (profit), a scenic route (growth), or simply reaching the next town (survival). The route you choose depends on your goals.
Table of Objectives and Examples
| Objective | Typical Actions | Example |
|---|---|---|
| Survival | Cost control, basic marketing | A small café keeps costs low to stay open during a recession. |
| Growth | New product lines, expansion | A tech start‑up opens a new office in another city. |
| Profit | Pricing strategy, efficiency | A clothing brand raises prices after a successful campaign. |
| Market Share | Competitive pricing, advertising | A soft drink company launches a new flavour to win more customers. |
Exam Tips Box
Tip: When answering exam questions, identify the objective first, then list actions that help achieve it. Use the table above as a quick reference.
Remember to use business terminology and give real‑world examples to show understanding.
Quick Quiz
- Which objective focuses on staying in business during tough times?
- Give an example of an action that supports growth.
- Why is market share important for a company?
Revision
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