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Changes in business aims and objectives - Teacher Slides.pptx
The lesson slides with the teacher's notes on each slide, and every question and mark scheme built in. Built from the lesson script on 27 September 2026.
EDEXCEL GCSE BUSINESS · PAPER 2
Changes in business aims and objectives
Growing the business
Lesson 2 of 4
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EDEXCEL GCSE BUSINESS · PAPER 2
Last Lesson
Growing the business
Lesson 2 of 4
Answer from memory before the answers appear.
1
What is organic growth?
2
What is the difference between a merger and a takeover?
3
Give one advantage of becoming a PLC.
4
Name one internal source of finance for growth.
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EDEXCEL GCSE BUSINESS · PAPER 2
Last Lesson - Answers
Growing the business
Lesson 2 of 4
1
What is organic growth?
Growth from within, through new products or new markets.
2
What is the difference between a merger and a takeover?
A merger is agreed joining; a takeover is one business buying control of another.
3
Give one advantage of becoming a PLC.
Can raise large sums by selling shares to the public.
4
Name one internal source of finance for growth.
Retained profit or selling assets.
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EDEXCEL GCSE BUSINESS · PAPER 2
Learning Objectives
Growing the business
Lesson 2 of 4
1
Explain why business aims and objectives change as businesses evolve.
2
Explain how aims and objectives change: survival or growth, entering or exiting markets, growing or reducing the workforce, increasing or decreasing the product range.
3
Explain how objectives such as profit maximisation, market share and sustainability become more important as a business grows.
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EDEXCEL GCSE BUSINESS · PAPER 2
Aims Change as a Business Grows
Growing the business
Lesson 2 of 4
A start-up's aims are rarely the same as an established business's.
Start-up
Survival: winning enough customers to cover costs.
Established
Profit and growth: increasing sales, opening new sites and launching new products.
Large business
Market share, profit maximisation and returns for shareholders.
Increasingly
Sustainability and social responsibility, as customers and shareholders expect larger businesses to behave well.
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EDEXCEL GCSE BUSINESS · PAPER 2
Why Aims and Objectives Change
Growing the business
Lesson 2 of 4
Market conditions
New competitors, changing customer tastes or a recession may force a change of direction.
Technology
New technology creates new opportunities or makes existing products obsolete.
Performance
A business doing well may aim to grow; one doing badly may return to survival.
Legislation
New laws, such as environmental rules, can force a business to change what it does.
Internal reasons
A new owner or manager, a takeover, or a change in what the owners want.
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EDEXCEL GCSE BUSINESS · PAPER 2
Deciding a New Direction
Growing the business
Lesson 2 of 4
As a business grows, its directors regularly review and change its objectives.
In a large business, the directors review the business's objectives regularly. A strong year might lead them to aim for new markets; a weak one might mean closing stores and focusing on profit.
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EDEXCEL GCSE BUSINESS · PAPER 2
PART ONE
How Aims and Objectives Change
Four ways a business changes direction.
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EDEXCEL GCSE BUSINESS · PAPER 2
How Objectives Change
Growing the business
Lesson 2 of 4
Change
What it means
Example
Survival or growth
Switching focus between staying in business and expanding
A chain closes loss-making shops to survive a recession
Entering or exiting markets
Starting or stopping selling in a location or segment
A retailer opens stores abroad, or pulls out of a country
Growing or reducing the workforce
Hiring more staff, or making staff redundant
A growing tech firm doubles its staff; a struggling one cuts jobs
Increasing or decreasing the product range
Launching new products, or cutting ones that do not sell
A café adds lunches; a phone maker drops unpopular models
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EDEXCEL GCSE BUSINESS · PAPER 2
Objectives of a Growing Business
Growing the business
Lesson 2 of 4
As it grows, a business's objectives often shift towards these.
Profit maximisation
Making as much profit as possible, often to reward shareholders in a PLC.
Market share
Becoming the biggest business in the market, to gain power over prices and suppliers.
Growth
Expanding into new locations, products and countries.
Sustainability
Reducing environmental impact and behaving responsibly, which customers and investors increasingly expect.
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EDEXCEL GCSE BUSINESS · PAPER 2
Growing the business
Lesson 2 of 4
CASE STUDY
Tesco: Entering and Exiting a Market
In 2007 Tesco, the UK's largest supermarket, entered the United States with a chain of small grocery stores called Fresh & Easy. Its objective was growth in a huge new market. But American shoppers did not take to the stores, and the business lost money year after year. In 2013 Tesco changed its objective and pulled out of the US, selling Fresh & Easy and writing off more than £1 billion. Poor performance in a new market had forced Tesco to change its aims and refocus on its home market.
2007
Tesco enters the US with Fresh & Easy
2013
Tesco exits the US after heavy losses
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EDEXCEL GCSE BUSINESS · PAPER 2
Key Terms
Growing the business
Lesson 2 of 4
Aim
A general, long-term goal a business wants to achieve.
Objective
A specific, measurable target that helps a business achieve its aim.
Profit maximisation
Aiming to make as much profit as possible.
Market share
The percentage of total sales in a market made by one business.
Sustainability
Operating in a way that does not harm the environment or use up resources for future generations.
Redundancy
When an employee loses their job because it is no longer needed.
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EDEXCEL GCSE BUSINESS · PAPER 2
Growing the business
Lesson 2 of 4
YOUR TASK
Changing Course
10 minutes
For each situation, explain how the business's objectives are likely to change and why: a café chain whose sales fall sharply in a recession; a toy company whose most popular toy is suddenly banned by a new safety law; a clothing retailer that has just been taken over by a larger rival; a small tech company whose app becomes a worldwide hit.
1
Name the reason for change.
2
Describe the new objective.
3
Say what the business will actually do.
WHAT A GOOD ANSWER SHOWS
A new objective for each business, linked to the reason for change - market conditions, legislation, internal reasons or performance.
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EDEXCEL GCSE BUSINESS · PAPER 2
Can I...?
Growing the business
Lesson 2 of 4
Explain why a start-up's aims differ from a large business's.
Explain five reasons why aims change.
Explain four ways aims and objectives change.
Explain profit maximisation, market share and sustainability as objectives.
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EDEXCEL GCSE BUSINESS · PAPER 2
Summary & Exam Focus
Aims change as a business grows and as its environment changes.
Reasons: market conditions, technology, performance, legislation and internal reasons.
Changes: survival or growth, entering or exiting markets, growing or reducing the workforce, increasing or decreasing the product range.
Larger businesses often focus on profit maximisation, market share and sustainability.
EXAM FOCUS
Explain one reason why a business might change its objectives. (3 marks)
Name the reason, then explain how it forces a change in what the business is trying to achieve - and what it will now do differently.
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EDEXCEL GCSE BUSINESS · PAPER 2
Exam Practice: Changes in Aims and Objectives
Growing the business
Lesson 2 of 4
Answer all questions. Use the context of the business in the question where one is given. · 20 minutes
Question 1 · 1 mark · State
State one reason why a business might change its objectives.
Question 2 · 2 marks · Outline
Outline one way a business might change its objectives if its sales fall sharply.
Question 3 · 3 marks · Explain
Explain one reason why a business might change its objectives.
Question 4 · 6 marks · Analyse
Analyse the reasons why Coastline Travel PLC has changed its objectives.
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EDEXCEL GCSE BUSINESS · PAPER 2
Question 1 · 1 mark · State
Growing the business
Lesson 2 of 4
“
State one reason why a business might change its objectives.
HOW TO ANSWER IT
Command word: State. Worth 1 mark, so plan before writing.
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EDEXCEL GCSE BUSINESS · PAPER 2
Question 1 · mark scheme
Growing the business
Lesson 2 of 4
1 mark available. Award a mark for each point made.
Any one of: market conditions; technology; performance; legislation; internal reasons
1 mark
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EDEXCEL GCSE BUSINESS · PAPER 2
Question 2 · 2 marks · Outline
Growing the business
Lesson 2 of 4
“
Outline one way a business might change its objectives if its sales fall sharply.
HOW TO ANSWER IT
Command word: Outline. Worth 2 marks, so plan before writing.
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EDEXCEL GCSE BUSINESS · PAPER 2
Question 2 · mark scheme
Growing the business
Lesson 2 of 4
2 marks available. Award a mark for each point made.
A change identified, e.g. growth to survival / exit a market / reduce workforce / cut product range
1 mark
Developed: what the business would do
1 mark
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EDEXCEL GCSE BUSINESS · PAPER 2
Question 3 · 3 marks · Explain
Growing the business
Lesson 2 of 4
“
Explain one reason why a business might change its objectives.
HOW TO ANSWER IT
Command word: Explain. Worth 3 marks, so plan before writing.
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EDEXCEL GCSE BUSINESS · PAPER 2
Question 3 · mark scheme
Growing the business
Lesson 2 of 4
3 marks available. Award a mark for each point made.
A reason identified
1 mark
First linked point of explanation
1 mark
Second linked point of explanation
1 mark
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EDEXCEL GCSE BUSINESS · PAPER 2
Question 4 · 6 marks · Analyse
Growing the business
Lesson 2 of 4
“
Analyse the reasons why Coastline Travel PLC has changed its objectives.
— Coastline Travel PLC runs holidays to 30 countries. Last year its profit fell by 40% as rising costs and falling customer incomes hit demand. Its board has decided to stop selling…
HOW TO ANSWER IT
Command word: Analyse. Worth 6 marks, so plan before writing.
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EDEXCEL GCSE BUSINESS · PAPER 2
Question 4 · mark scheme
Growing the business
Lesson 2 of 4
6 marks available. Award a mark for each point made.
AO2 (Application, 3 marks): uses the context - 40% fall in profit, 30 countries, exiting eight, 10% staff cut
Level 1-3
AO3a (Analysis, 3 marks): chains of reasoning explaining why the objectives changed
Level 1-3
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