Syllabus: Cambridge - IGCSE Business Studies
Module: 1.5 Business Objectives and Stakeholder Objectives
Lesson: 1.5.1 Businesses can have Several Objectives and the Importance of them can Change

Introduction

This lesson links directly to the Cambridge IGCSE Business Studies (0450) syllabus, specifically section 1.5.1, which introduces the idea that businesses can have multiple objectives, and that these objectives may evolve over time. This topic is critical for developing commercial awareness — understanding that businesses aren’t static entities but adapt to external environments, stakeholder pressures, and internal growth strategies.

The lesson provides a natural platform to build real-world problem-solving skills and links powerfully to Gatsby Benchmark 4 by helping students see how curriculum content connects to careers and commercial thinking.

Key Concepts

This syllabus point covers the following core areas:

• Types of business objectives, including:

  • Survival

  • Profit maximisation

  • Growth

  • Market share

  • Customer satisfaction

  • Social and ethical goals

• Reasons businesses may pursue several objectives simultaneously:

  • Balancing short-term survival with long-term growth

  • Meeting stakeholder expectations (e.g. employees, shareholders, community)

• How and why objectives change:

  • Changes in market conditions

  • New competitors or regulation

  • Internal strategic decisions (e.g. mergers, new leadership)

  • Shifting stakeholder priorities

• Stakeholder conflict and compromise:

  • Recognising that stakeholder objectives can align or clash (e.g. cost-cutting for profit vs staff welfare)

  • The importance of managing these tensions

Real-World Relevance

Modern businesses regularly reassess their objectives. Consider Marks & Spencer, which shifted its focus from aggressive growth to sustainability and ethical sourcing in response to changing consumer expectations. Similarly, Tesco temporarily prioritised survival during the 2014 accounting scandal, moving away from growth targets to stabilise its operations.

In the small business sector, a local café might begin with survival as its main goal, later focusing on growth through franchising. Stakeholders such as investors, local communities, and employees may influence the direction of these goals.

These examples help students understand that business decisions are not made in isolation, but are shaped by a range of external and internal factors.

How It’s Assessed

Cambridge IGCSE assessment typically includes:

• Multiple-choice questions (Paper 1) testing recognition of objectives

• Short-answer questions requiring definition or identification of different objectives

• Data response questions where students must interpret scenarios and suggest suitable objectives

• Extended writing questions (6–8 marks) asking students to evaluate how objectives may change and why, often requiring balance and stakeholder analysis

Command words to highlight:

• Identify – name or state

• Explain – give reasons or causes

• Analyse – break down with reasons and implications

• Evaluate – weigh up arguments or outcomes, and provide a justified conclusion

Enterprise Skills Integration

This lesson presents rich opportunities to develop core enterprise and employability skills, particularly:

• Decision-making: choosing between conflicting objectives (e.g. growth vs ethics)

• Problem-solving: navigating stakeholder conflict in realistic case scenarios

• Commercial awareness: understanding how businesses operate in dynamic environments

• Communication: explaining and justifying objectives to different stakeholders

Enterprise Skills tools such as stakeholder analysis matrices, business model scenario planners, or cost-benefit worksheets (available within the Skills Hub) help students engage with these ideas practically and confidently.

Careers Links

This topic maps directly to Gatsby Benchmarks 4, 5, and 6:

• Benchmark 4: Curriculum linked to careers — students explore how objectives vary by business model, sector, and size

• Benchmark 5: Employer examples — simulations or guest speakers can show how objectives are managed in their workplace

• Benchmark 6: Simulated experiences — through business simulations, students take roles such as Managing Director or Finance Lead and must agree on strategic objectives under pressure

Careers linked to this topic include:

• Business Analyst – understanding organisational goals and performance

• Operations Manager – balancing cost control with service delivery

• CSR Manager – managing social and ethical objectives

• Marketing Executive – working to meet brand visibility or market share objectives

Teaching Notes

Common Pitfalls to Watch For:

• Students confusing business aims (broad goals) with objectives (specific, measurable outcomes)

• Oversimplifying stakeholder relationships — they’re not always in conflict

• Assuming objectives never change once a business is established

Recommended Activities:

• Mini case studies: Present businesses at different stages (start-up vs established) and ask students to identify likely objectives

• Stakeholder role play: Assign students roles (employee, owner, customer) to debate a strategic shift (e.g. moving production overseas)

• Objective mapping task: Link stakeholder interests to corresponding business objectives in real-world companies

Stretch and Challenge:

• Introduce the idea of SMART objectives and how businesses measure progress

• Explore mission statements and their influence on setting objectives

Zero-prep resource suggestion:

• Use Skills Hub’s “Customer Focus” and “Data-Driven Decisions” sessions to deepen understanding of stakeholder needs and decision-making in real-world scenarios.