Why Business Aims & Objectives Change | Sainsbury's Examples

Summary

This video explores the various reasons why business aims and objectives evolve, using Sainsbury's as a primary example. It covers how external factors like market conditions, technology, and legislation, as well as internal factors like business performance and strategic decisions, necessitate changes in a company's goals.

Highlights

Introduction: The Dynamic Nature of Business Aims00:00:00

This video will explore why business aims and objectives change as a company grows and adapts, using Sainsbury's as an example.

Impact of Market Conditions on Aims and Objectives00:00:12

Market conditions, including market size and competition, significantly influence business aims. Sainsbury's, operating in the retail market, must adjust its strategies based on whether the market is growing or declining. For instance, increased competition from discount retailers like Aldi has led Sainsbury's to implement price-matching strategies.

Technology as a Driver for Change00:01:17

Rapid technological advancements compel businesses to adapt their aims and objectives. Sainsbury's, established in 1869, has transformed its business model from one without mobile phones or the internet to one heavily reliant on online shopping and delivery services, setting targets to increase its online presence and sales.

Business Performance Influences Goal Setting00:01:59

A business's performance directly impacts its targets. Poor performance might lead to more conservative financial objectives focused on survival, while strong performance allows for more challenging goals that push boundaries both operationally and financially for companies like Sainsbury's.

Legislation Necessitates Adjustments00:02:34

Evolving legislation, such as changes in the minimum wage, requires businesses to alter their strategies. For a large employer like Sainsbury's, a substantial increase in minimum wage can lead to a re-evaluation of staff wage budgets and associated aims.

Internal Reasons for Strategic Shifts00:03:19

Internal decisions, such as introducing new products, entering new markets, or developing entirely new strategies, also drive changes in aims and objectives. Sainsbury's expansion into convenience stores, a strategic internal decision, shifted their focus from large supermarkets to building a network of smaller stores.

Conclusion: Continuous Adaptation00:04:14

Ultimately, businesses must continuously adapt their aims and objectives in response to both internal and external factors. Sainsbury's evolution from its inception in 1869 to today demonstrates this constant need for change and growth.