Why business objectives change
The aim of a business can change over time. This can happen in response to internal factors, such as business growth, or in response to external factors, such as an economic recession.
A small start-up business may aim to survive in the first year. Once successful, the business then sets itself the objective of increasing profits or growing in size.
Alternatively, a profitable business that is hard hit by an economic recession may struggle to maintain the same level of The amount of something produced.. Faced with declining sales, a business may change its objective from growth or making a profit, to simply surviving.
Different sectors of the economy will have different objectives:
| Private | Public | Third |
| Maximise profit | Provide a service | Support a cause |
| Provide a good quality service | Work within a budget | Provide a service |
| Survive | Operate ethically | Raise awareness of a cause |
| Operate ethically | Serve the local community | Maximise donations |
| Maximise sales | Operate ethically | |
| Growth | Survival | |
| Corporate social responsibility | Increase number of volunteers |
| Private | Maximise profit |
|---|---|
| Public | Provide a service |
| Third | Support a cause |
| Private | Provide a good quality service |
|---|---|
| Public | Work within a budget |
| Third | Provide a service |
| Private | Survive |
|---|---|
| Public | Operate ethically |
| Third | Raise awareness of a cause |
| Private | Operate ethically |
|---|---|
| Public | Serve the local community |
| Third | Maximise donations |
| Private | Maximise sales |
|---|---|
| Public | |
| Third | Operate ethically |
| Private | Growth |
|---|---|
| Public | |
| Third | Survival |
| Private | Corporate social responsibility |
|---|---|
| Public | |
| Third | Increase number of volunteers |