Why aims and objectives change

Aims and objectives are not fixed: as circumstances change, a business reviews what it is trying to achieve and often rewrites it.

Causes outside the business

Market conditions include competition, economic conditions such as income levels, consumer lifestyles and leisure choices, demand trends or fashion, and the availability or quality of supply. When a cheaper gym opens nearby, an independent gym's plan for a second site can suddenly look unrealistic, so it switches its objective to keeping its existing members; rising demand for a new class could just as easily create an opportunity to grow.

Technology affects what a business sells, how it makes it, its costs and how it communicates. A sign-making firm whose customers now send artwork by email may set an objective to offer a design service, using new software to win work its rivals cannot do.

Legislation can ban or restrict products or practices, or add costs. New rules on displaying allergen information might lead a café to drop some dishes and set objectives for accurate labelling, changing its product range. A business may also set green objectives alongside profit as environmental law and customer expectations grow.

Causes inside the business

Business performance matters too. Falling sales and tight cash push a business to focus on survival and cutting costs, perhaps by shrinking the workforce or leaving a market, because without that it may not compete or survive. Strong profits and cash do the opposite, giving managers confidence to aim for growth.

Internal reasons come from inside: a change of ownership, leadership, size, resources, culture or priorities. New owners of a bakery may set organic sourcing and fair pay as their main aim, while a manager brought in to lead the business may put long-term survival ahead of short-term profit.

The four ways they change

Whatever the cause, the change usually appears as one of four moves: focusing on survival or growth, entering or exiting a market, growing or reducing the workforce, or increasing or decreasing the product range.