Survival or Profit?

Survival and profit objectives in IGCSE Business: what you need to know

This free game is part of our Pearson Edexcel iGCSE Business (4BS1) course for exams in EXAM YEARS 2026-2028.

What are financial aims and objectives?

Every business sets financial objectives: targets for money that guide its decisions. For IGCSE Business the three you need to know are survival, profit maximisation and satisfactory profit. The key idea is that the right objective depends on the situation the business is in, and it changes over time.

In Survival or Profit? you run a smoothie business for seven years. Each scenario shows four clues on the 3D city: the weather (the economy), the red towers (competition), the crowd (demand) and the coin pile (cash flow). You read the clues, then choose the objective that fits.

Survival

Survival means staying open: keeping enough cash coming in to pay the bills and avoid closing down. It is the main aim for:

• Start-ups, which have few loyal customers and often a loan to repay.
• Any business hit by a crisis, such as a lockdown or recession.
• A business facing intense new competition, like a big chain opening nearby.
• A business with cash flow problems. A business can be profitable on paper and still go bust if customers do not pay on time.

Survival indicators include positive cash flow, paying bills on time, keeping a steady customer base and keeping key staff.

Profit maximisation and satisfactory profit

Profit maximisation means making as much profit as possible. It suits a business with high demand, weak competition, a booming economy, strong cash flow or a strong market position, such as a market leader with loyal customers.

Satisfactory profit means making "enough" profit rather than the most possible. A business might choose it to keep good relationships with customers and suppliers, or to avoid attracting big rivals with profits that look too tempting. Owners of small businesses may also be happy with a steady income rather than working flat out.

Profit indicators usually have "profit" or "return" in the name: gross profit margin, net profit, return on investment (ROI) and profit growth.

Internal and external factors

Objectives change because of internal factors (inside the business, such as cash flow and management experience) and external factors (outside the business, such as the economy, competition and demand). A useful memory trick: INternal is INside, EXternal is out the EXit door.

The business lifecycle matters too. Remember S-G-M: Start-ups Survive, Growing businesses Grow profit, Mature businesses Maintain profit.

Exam tips

• Always say because. Link the objective to the evidence in the case study, for example "As a start-up with low cash flow, the business should focus on survival because it has few loyal customers and a loan to repay."
• Do not confuse profit with cash. Profit on paper does not pay the bills.
• Use real examples: Amazon made very little profit for years while it focused on survival and market share, and many high street retailers closed stores to survive recessions.