Syllabus: Pearson Edexcel GCSE Business
Module: Growing the Business
Lesson: 2.1.2 Changes in Business Aims and Objectives

Introduction

Businesses rarely stick to their original plans forever. This topic explores how and why businesses adapt their goals as they grow and respond to changing circumstances. It’s about understanding that business objectives aren’t set in stone but evolve throughout a company’s life. Whether it’s a startup shifting from survival to growth, or an established business responding to new technology, these changes reflect the dynamic nature of business decision-making. Students will see that flexibility in aims and objectives isn’t a sign of failure – it’s often the key to long-term success.

Key Concepts

According to the Pearson Edexcel GCSE Business syllabus, the key concepts under Changes in business aims and objectives include:

• Why Business Aims and Objectives Change as Businesses Evolve:

  • In response to market conditions: Shifts in consumer demand, competitive landscape, and economic climate
  • In response to technology: Innovations that create new opportunities or threaten existing business models
  • In response to performance: Actual results compared to targets, requiring strategic adjustments
  • In response to legislation: New laws and regulations that necessitate operational changes
  • In response to internal reasons: Changes in ownership, leadership, or organizational structure

• How Business Aims and Objectives Change as Businesses Evolve:

  • Focus on survival or growth: Shifting between defensive and expansionary strategies
  • Entering or exiting markets: Strategic decisions about which markets to compete in
  • Growing or reducing the workforce: Adjusting human resources to meet changing needs
  • Increasing or decreasing product range: Expanding or streamlining product offerings

These concepts help students understand that business aims and objectives are not static but evolve in response to a complex interplay of internal and external factors.

Real-World Relevance

Changes in business aims and objectives are visible in brands students encounter every day:

• Market Conditions Responses:

  • Marks & Spencer once aimed to have stores in every major town but now focuses on fewer, better stores and online growth – a shift students can see on their high streets.
  • Netflix started with the goal of being the best DVD rental service before pivoting to streaming and then to content creation – an evolution most students have witnessed as subscribers.
  • When COVID hit, restaurants that once aimed to maximize in-store dining quickly shifted to takeaway and delivery objectives – a change students experienced firsthand.

• Technology Responses:

  • Kodak stuck to film photography goals while Fujifilm embraced digital technology – one went bankrupt, one thrived. This shows students the consequences of failing to adapt objectives to technological change.
  • Banks that once aimed to expand their branch networks now focus on digital banking – a shift students can see in their own banking experiences.
  • Traditional taxi companies had to completely rethink their objectives after Uber arrived – a disruption many students have directly participated in.

• Performance Responses:

  • Tesco’s “Fresh & Easy” stores in America failed, prompting the company to refocus on UK operations – showing students that even major companies adjust objectives when performance disappoints.
  • Apple’s evolution from “make the best computers” to “create the best consumer technology ecosystem” came after the iPod’s success showed a new path forward.
  • Dyson spent millions developing an electric car before abandoning the project to refocus on core products – demonstrating that objectives change when performance projections don’t add up.

• Legislation and Internal Changes:

  • Energy companies like BP have shifted from pure oil objectives to include renewable energy goals in response to climate legislation – a change students see in their advertising.
  • When Microsoft appointed Satya Nadella as CEO, the company’s objectives visibly shifted from Windows-centric to cloud and mobile strategies – affecting the technology students use daily.

These examples connect abstract business concepts to real companies and products students already know, making the topic immediately relevant.

How It’s Assessed

In exams, students will typically encounter:

• Multiple-choice questions: Testing basic knowledge of why and how business aims and objectives change.

• Short-answer questions: Explaining specific factors that might cause a business to change its aims and objectives.

• Case study questions: Identifying reasons for changing aims and objectives in business scenarios and explaining their potential impact.

• Extended response questions: Discussing how changes in aims and objectives might affect different stakeholders or business functions.

Students need to know specific factors driving changes in aims and objectives, understand how these changes manifest in business strategy, and evaluate their potential impact. Command words to watch for include “identify,” “explain,” “analyze,” and “evaluate,” with higher marks for balanced arguments that consider both advantages and disadvantages in different contexts.

Enterprise Skills Integration

Understanding changing business aims and objectives builds practical skills students can use beyond exams:

• Adaptability: Seeing how businesses change their goals develops appreciation for flexibility in dynamic environments – an essential skill in today’s workplace.

• Strategic thinking: Analyzing the factors that drive changes in business aims helps develop forward-thinking applicable in various contexts.

• Problem-solving: Examining how businesses respond to challenges by adjusting their objectives enhances creative problem-solving capabilities.

• Decision-making: Evaluating the implications of changing direction develops the ability to make informed decisions based on multiple factors.

• Critical analysis: Assessing the effectiveness of strategic changes fosters analytical skills valuable in any career.

These skills transfer well beyond business studies to any situation requiring strategic adaptation to changing circumstances.

Careers Links

Knowledge of changing business aims and objectives connects to numerous career paths:

• Strategic Management: Business Strategists, Strategic Planners, and Change Managers help organizations revise and implement new objectives in response to changing conditions.

• Business Analysis: Business Analysts and Management Consultants evaluate performance and recommend adjustments to improve outcomes.

• Marketing: Marketing Managers and Brand Strategists adapt marketing objectives to align with evolving business goals and changing market conditions.

• Human Resources: HR Directors and Workforce Planners implement changes to staffing objectives in response to shifting business priorities.

• Product Development: Product Managers and Innovation Directors adjust product development objectives based on market feedback and technological advancements.

Understanding how and why business objectives change is relevant to almost any business career path students might consider.

Teaching Notes

• Start with a familiar example like Netflix or Apple that has visibly changed direction over time. Most students will have observed these shifts as consumers.

• Try timeline activities to help students visualize how a business’s aims and objectives have changed throughout its history, highlighting key turning points.

• Use recent news stories about businesses changing direction as case studies – perhaps a local business that pivoted during the pandemic or a well-known brand launching in a new market.

• Create debate opportunities on whether businesses should prioritize short-term or long-term objectives when facing challenges. Should a struggling restaurant chain close underperforming locations or invest in improving them?

• Watch for the misconception that changing aims and objectives indicates failure rather than strategic adaptation, or that all businesses within an industry will have similar objectives.

• For extension, have students research businesses that failed to adapt their objectives appropriately and analyze the consequences – Blockbuster versus Netflix makes a compelling case study.