This is a period of decline in all vital indicators of the company: sales, profit, competitiveness. The company is desperately trying to stay on the market. There is a turnover in personnel, conflict situations arise more and more often, power is almost completely centralized. Without innovations, it is no longer possible to maintain profitability at the proper level. It is necessary to economize greatly, reduce expenses and, in fact, prepare for "death". Or try to revive again.
Revival
Not all companies are revived, but only iraq business email list those that understand the danger of the moment in time, are ready to fight and make serious efforts to get back on track. Then they begin developing new products, invest in this, plus modernize production and renew the management team. In addition, they eradicate bureaucracy and learn to make decisions faster. The revival stage in the life cycle of a company may not exist, or it may exist, but does not bring success or, on the contrary, brings the enterprise to a new level of development.
If the management correctly understands the company's position during each life cycle and takes competent actions, the business will take a confident position in the market and will generate the desired income.
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Alexander Kuleshov
Alexander Kuleshov
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Other models of the life cycle of an organization
There are several other models of company life cycles (about ten). Most of them were formed between 1967 and 1983 in the United States. Each of them has its own method of conducting research and interpreting the collected data. Below are some of them in the order in which they appeared.
"The Driving Forces of Growth", 1967, author - E. Downs.
The very first model that was applied to the work of state committees.
E. Downs identified three phases in the process of development and growth of a company:
The phase of struggle for independence. This is the moment when the company has not yet been created or has just been formed and it strives to identify itself on the market, to get everything necessary for survival.
The phase of rapid development, when the company grows, boldly introduces innovations, generates and implements creative ideas.
The slowdown stage, at which all processes are formalized and subject to total control by management.
"Managerial Participation", 1967, authors - G. Lippitt and W. Schmidt.
This is a life cycle model for private companies.
Lippitt and Schmidt identify three stages in the development of private commercial enterprises:
The formation stage, when the company itself is formed, its management structure and organization gradually gets on its feet.
The stage of youth, during which the company gains confidence in its abilities and earns a reputation in the market.
Maturity stage. The period when the enterprise becomes unique in its kind, gains confidence and high competitiveness.
This model identifies six key management tasks for the business founder that must be
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