CAIE A-Level Business 1.4.2 Objectives & decisions

CAIE A-Level Business 1.4.2 Objectives & decisions
Cambridge International AS & A Level Business 9609 syllabus for exams in 2026, 2027 and 20282026–2028

Practise linking objectives to decisions, including SMART targets, ethical choices and reasons objectives change over time.

How this is tested

  • explain why objectives change because of market conditions or internal business changes
  • analyse how SMART objectives translate broad aims into targets or budgets
  • evaluate how ethics should influence marketing or HRM decisions in a named business

Question 2(d)

[Maximum number: 12]

Personalised Blankets (PB)

Kaia left university with a degree in textile design. Using her entrepreneurial qualities, Kaia set up PB as a sole trader. Her current objective is to break even.

Kaia uses job production to make blankets which are personalised with a picture. Each customer logs into the PB website and chooses the size of blanket. The customer then uploads a picture that they want printed onto the blanket.

Many of Kaia's customers buy the blankets as gifts for special occasions.
Kaia has employed a social media influencer to promote her blankets. The influencer will be paid a salary of $ 250 a week and a 5% commission on revenue that comes directly from the influencer. Fig 2.1 shows the revenue that came directly from the social media influencer in February.

Fig. 2.1 Revenue directly from the social media influencer in February

Fig. 2.1 Revenue directly from the social media influencer in February

Kaia would like to relocate PB to larger premises. She is applying for external sources of finance, and she has written a five-year business plan to support her applications.

Evaluate the most likely reason for Kaia's objectives to change over the next five years.