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Why business aims and objectives change as businesses evolve

When a business is expanding and performing well, some of its aims and objectives may focus on growing its workforce. This may include opening new departments, creating new teams and recruiting more staff. By growing its workforce, a business gains more potential for expansion.

Reducing the workforce is usually part of a survival strategy for a business. When a business is not performing well or is exiting a market, it may reduce its workforce to help reduce its overall business costs. However, occasionally, a reduction in a workforce is part of a business growth plan involving technology. For example, in the banking industry, many high street branches have closed due to the huge increase in the use of online banking and automated cash machines.

Increasing or decreasing the product range

Businesses often start with a small number of products, but over time they may expand their product range as they grow. For example, a technology business could begin by making a range of computers, but over time it could expand into developing mobile phones and televisions.

Sometimes a business will increase its product range to compete with other businesses. Having a larger product portfolio allows businesses to manage their risk, because if a product is not performing well, the business can rely on its other products to produce revenue.

When a product is not generating enough revenue or a business is failing, the business will often decrease its product range. Usually a business will do this either to allow them to focus on their existing products or to develop a new product range in a different sector.