CAIE IGCSE Business Studies 1.5.1 business objectives
Practise business-objectives questions by naming aims, explaining why objectives matter and using the case to support the answer.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- State objectives such as survival, profit, growth, improved cash flow or market share.
- Explain why objectives guide decisions, motivate owners or help judge performance.
- Identify reasons objectives change, such as market shifts, new laws or achieved aims.
1.5.1—Business objectives question 1
[Maximum number: 4]
TCH is a small bakery producing pastries and cakes. It operates in the secondary sector. The added value of TCH's products has increased since it opened 3 years ago. TCH uses non-financial methods to motivate its 6 employees. TCH's business objectives have changed since it started up. One of its new objectives is to expand. Many businesses use external recruitment when they expand.
Outline two reasons why TCH's business objectives might have changed.
Reason 1:
Reason 2:
Award 1 mark for each relevant reason (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Points might include:
- Previous objectives have been achieved / previous objectives were unrealistic [k] at the bakery [app]
- Change of owners/managers [k] over the last 3 years [app]
- Changes in the government objectives/legal controls [k] affecting secondary sector businesses [app]
- Change in customer preferences / demand / follow new trends [k] so may need more/less than 6 employees [app]
- Change in competition [k] which may be why want to business to expand [app]
Other appropriate responses should be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Bakery
- Pastries/cakes
- Small (business)
- 3 years
- Secondary sector
- 6 employees
- Expand/expansion
Other appropriate examples can be credited.
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