Business aims and objectives - EduqasObjectives change in dynamic business environment
All businesses create aims and objectives to give them goals or targets to achieve. Businesses have a range of stakeholders that are all impacted in some way by aims and objectives.
How aims and objectives change in a dynamic business environment
Businesses that operate in competitive and dynamic environments must be prepared to change their business aims and objectives regularly.
A competitive environment is a segment of the market that has a significant number of businesses competing. A dynamic environment is a business environment that is rapidly changing. In a dynamic market, businesses have to adapt quickly to changes and develop new ideas, products and services to keep up with technology and new trends.
Changes to aims and objectives in these markets could be caused by either internal or external factors.
Internal factors include:
sudden change in demand
faster or slower growth
a change in business direction
achieving objectives early or being far behind expected
External factors include:
increase in consumer incomes
a change in the competitive environment
new taxes or legislation
increased pressure on social issues such as sustainability