Why do businesses need aims? And why do these aims change over time? These are important questions that need to be considered by everyone before starting a business venture. The main focus of a business would be to achieve its aims and objectives. The aim of a business can be considered as its primary goal which would take into consideration factors like profit, brand building, expansion and market leadership etc.
A business would need to change is business aims from time to time in order to remain successful in today’s competitive world. And here are some simple reasons why!
Business Growth
Internal factors like growth and increased profits can make a business change its objectives with time. For instance, a company would have achieved its objective of surviving in the market or reaching a certain amount of growth within a stipulated time period. Once that objective is reached, the company would need to set new objectives to reflect increasing profits and growth.
Economic Recession
External factors like economic recession can force a business venture to reconsider its objectives. For instance, a business venture would need to be downsized in order to cope with reduced output and profits, or would need to change its aim of achieving a certain amount of profit within a stipulate time. In certain cases, a company would changes its objective of growing to just surviving in the market.
Competitive Change
A company would need to change its business objectives in order to maintain its position in the market. Changing its business aims would enable the company to respond to competition from other companies with similar goals.
For instance, a company dealing with beauty products would have to change its business aims from mere profit making to increasing market share and being ethical and environmental friendly if it faces competition from another company dealing with similar beauty products.
Introduction of Technology
The use of technology in certain business ventures would cause changes in the business objectives. For instance, a company that hires labors for its work would set its business aims in accordance with the productivity of the workers that it employs. Using automated technology for the same work would increase productivity and sales to a great extent. And this would require the concerned company to set new aims that would reflect the current proceedings.
