Factors Affecting Objectives

The aims and objectives that a business have can vary and depend upon a number of factors.

the state of the economy

During a recession businesses may concentrate upon survival, but during a boom or periods of growth businesses may try to make a large profit or increase sales.

Nature of ownership

Often the government may own businesses that aim to provide goods or services to the population. The aim will normally be something other than profit, e.g., a hospital may aim to see all patients within two hours of arrival or a school may aim to have 50% of its pupils achieve five or more GCSEs from A* to C.

location

Depending on the nature of their product and markets, businesses may aim to expand locally or move into new markets abroad.

financial situation

Companies that have just started out or are facing tough times (such as during a recession) may aim just to survive. Other businesses who are in a strong financial position may aim to increase sales and profits;

the type of market

Some markets, such as farming, traditionally make relatively little money so their objectives will differ from markets where the owners are used to making high levels of profit.