This section covers the following Explain why aims and objectives change as businesses evolve Discuss how aims and objectives change as businesses evolve Evaluate the different causes for change in objectives ID: 1020847
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1. Changes in aims and objectives This section covers the following: Explain why aims and objectives change as businesses evolveDiscuss how aims and objectives change as businesses evolveEvaluate the different causes for change in objectives
2. List three qualities an entrepreneur shows. Describe the difference between customer wants and needs using examples. Give the formula for breakeven analysis.Title- Changes in ObjectivesDefine the term objective.Why are objectives important?What are the different objectives a business could have?
3. Explain the benefits to a business of having a set of clear objectives. Include one reason (AO1)Include two impacts (AO3a)Keywords (use three) OrganisedFocusDrive Motivate SucceedEntering markets When a company decides to open up in a market it hasn’t been in before, for example Walkers launching cereal barsExiting markets Choosing to leave a market, probably because it was loss-making and looked set to continue
4. Why do aims and objectives change?Market conditions: for example, McDonalds is adding more luxury burgers to its menu after the rise of gourmet burger restaurants.Technology: Ted Baker has seen fast growth due to the use of its website, with 45.8% increase in e-commerce sales in 2016.Performance: where a business has to take action if sales or profits are decline. For example, Apple introduced the IPad Pro as tablet sales started to dip.Legislation: The vote to leave the EU will mean massive change for businesses, such as the right to fish for any type of fish.Internal reasons: when a new Chief Executive of M&S started, he made brand revival rather than short-term sales an aim in 2016. Market condition change
5. Laura Ashley, the fashion retailer, was close tocollapse in 1999 when Knoo Peng became chairman. Theaims of the business were changed to reduce costs by reducing stores. In 2016 sales rose 16% with 13 less stores and profits of £25m.Focus on survival or growthLaura Ashley decided to focus on reducing its debts and increasing its sales from 1999 until 2015. An opportunity for growth has now come in the form of entering the Chinese market via franchising, after overall sales grew in 2016 by 4.1%.Laura AshleyA reduction in size may also be important for the continued success of the business. NatWest and other banks have been slowly getting rid of physical branches as customers switch to online services.
6. Aldi and LidlIt’s nearly three years since German budget supermarkets Aldi and Lidl began in earnest their assault against the established ‘Big Four’ British grocers. Both stores had been slowly growing in the UK for many years, but the hubristic expansion of Tesco, Sainsbury’s, Asda and Morrisons created a distinct opportunity.The mood among shoppers had turned from range to convenience, while value was more important than ever. Burdened with a network of half-populated hypermarkets, Tesco and the gang were therefore woefully unready for the price war the expansive Germans unleashed.Their campaign was a great success. In the 12 weeks to December 4 2016, Aldi and Lidl between them commanded 10.8% of the UK grocery market, up from 7.1% at the start of 2014.P1- Point 2 ImpactsP2- Point 2 ImpactsP3- Point 2 ImpactsConclusion- Overall ( Link to P1&2)However (Link to P3)It depends (Contrast the two)P1 & 2 will back up your argumentP3 will balance your argumentBoth Aldi and Lidl have had a presence in the UK for a number of years. Justify which change Aldi and Lidl should now take to remain market leaders-Enter the online sectorDevelop their emphasis on the ‘middle aisle’ Both Aldi and Lidl have had a presence in the UK for a number of years. Evaluate which factors might have led to them becoming more aggressive, in terms of growth, in the past four years
7. Give one benefit to Netflix of creating its own shows and films.Give one reason why a business might focus on survival rather than growth.Why might the workforce of a bank reduce even when profits are increasing?The statistical forecasting group IGD estimates that the UK grocery market is worth up to £179.1 billion in 2016. Supermarkets account for 86.6% of this market. a) Calculate the value of the supermarket grocery sector.b) Calculate the combined total for Lidl and Aldi in December 2016.