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Business · Vision mission and objectives

Why business objectives may change

The question asks why a business changed its objective, and your answer stops at the market changed.

A business changes an objective when something in the case makes the old target unrealistic or no longer useful. A strong answer names the cause, quotes the evidence and states what the new target becomes.

This is the last skill in vision, mission and objectives. It builds on connecting objectives to performance measures, because the figures you track are the evidence for a change.

What is the routine?

Use three steps: cause (external or internal), evidence (a case figure or phrase) and revised target (a new figure and deadline).

Type of cause Case clue Possible effect
External Supplier price rise, new competitor, lower demand Profit or sales target becomes too high
Internal Machine breakdown, staff shortage, larger capacity Output target may need to fall or rise
Results Target met early or missed by a large gap Target was set too low or too high

Worked example: Roti Kampung

An invented bakery set an objective of selling 300 loaves each month at RM5 each, giving RM1 500 of sales. After three months, the price of flour rises by 20%. Sales reach only 240 loaves each month.

Cause. External: a supplier’s price rise.

Evidence. Flour up 20%, and sales at 240 loaves, which is 60 loaves (300 − 240) below the target. In RM, sales are 240 × 5 = RM1 200, a shortfall of RM300 each month.

Revised target. The owner could raise the price to RM5.50 and set a target of 260 loaves, giving 260 × 5.50 = RM1 430 each month. The new target is realistic because it is near the recent 240 loaves and the higher price protects earnings.

The answer is strong because it links the change to the case, and its revised figures are checkable.

The mistake that costs marks

The slip is a general statement with no case evidence.

Answer Why it fails or works
“Objectives change because businesses need to grow.” No cause and no case detail.
“Roti Kampung revised its target because flour rose 20%, so selling 300 loaves was no longer achievable at the old price.” Names the cause, quotes the figure and links to the target.

Another slip is to say the vision changed. The case may keep the same vision while the objective is adjusted.

Check yourself

Invented case: Dobi Laju aimed to wash 400 kg of laundry each month. A machine broke down in month two, and output fell to 280 kg. Explain why the objective might be revised and suggest a new figure.

Answer

Cause: internal, a machine breakdown that reduced capacity.

Evidence: output fell to 280 kg, which is 120 kg (400 − 280) below the target, or 30% (120 ÷ 400 × 100).

Revised target: for example 330 kg each month until the machine is repaired, which is close to the reduced capacity and can be checked. Once the machine is back, the business can set a new figure.

A reason from the case, such as the cost or time of repair, would make the answer stronger.

What to study next

Test all four skills together on the cluster practice set. The business case-answer planner can help you lay out cause, evidence and target.

If you want a teacher to check your change explanations, see online one-to-one Business tuition.

Common questions

Why would a business change its objectives?

Conditions change. Costs rise, competitors arrive, demand shifts, or the business's own results show the old target was too high or too low. Reviewing objectives keeps them realistic and useful.

Do vision and mission change as often as objectives?

Usually not. A vision and mission describe long-term direction and purpose, so they change rarely. Objectives are specific and time-bound, so they are reviewed more often.

What is the difference between an internal and external cause?

An internal cause comes from inside the business, such as machine capacity or staff skills. An external cause comes from outside, such as a supplier's price rise or a new competitor.

Should the answer include a new objective?

When the question allows, yes. After naming the cause and quoting the case, state a revised target with a figure, because it shows you understand how the change works in practice.

If change questions leave you writing general sentences, a one-to-one Business teacher can work through the case with you and show which detail is the real cause.

  • Online one-to-one lessons for your child with an experienced teacher.
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