businesses can have several objectives, e.g. survival, growth, profit, market share
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
Log in to practice.
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