Oranizational Life Cycle

Top of Form Organizational life turn Organizational life cycle antinational life cycle (OLC) is a model that proposes that businesses, over time, near through a fairly predictable sequence of developmental stages. This model is linked to the study of organizational evolution and development. It is ground on a biological metaphor of living organisms, which look at a regular pattern of development: birth, growth, maturity date, decline, and death. Likewise, the OLC of businesses has been conceived of as by and large having four or five stages of development: start-up, growth, maturity, and decline, with diversification sometimes considered to be an additional stage coming between maturity and decline. During the start-up stage, companies accumulate capital, prosecute workers, and start developing their products or services. Toward the overthrow of this stage, companies often experience explosive growth and begin to hire reinvigorated employees rapidly, because business opportunities exceed infrastructure and resources. This expansion continues into the growth stage where companies increase their resources and workforces dramatically. The financial situation of companies usually improves during this stage, as company revenues grow and as companies establish strong guest bases.

Despite their expansion, companies may still need additional currency to exploit all the available growth opportunities, so umteen go public at this point, too. The maturity stage is attach by security and by a slight slowdown. By this stage, companies have amassed assets and solid profits, by becoming established in the market. The primary area of business has become a money cow because it controls a sizable market share and continues to translate profits, but experiences slow or stagnant growth. In severalize to avoid the decline stage, mature companies often take a variety of actions to renew their growth, such as acquiring otherwise companies and expanding product lines. Some business theorists consider the foray into new markets a... If you want to get a full essay, order it on our website: Ordercustompaper.com

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