Mr Brayane

Topics: Management, Organization, Organizational structure Pages: 5 (1173 words) Published: June 8, 2013


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* Adizes I, 1989. Corporate Life Cycles
* Beverland M, Lockshin LS. 2001. Organizational life cycles in small New Zealand wineries. * Churchill NC, Lewis VL. 1983. The five stages of small business growth * Buchele, R.B. 1967, Business Policy in Growing Firms, Chandler, San Francisco, California.

Development of organization life cycle
Numerous researches have focused on the life cycles of organizational development. Historians and academics have observed that organizations, like living organisms, have life cycles. They are born or established, grow and develop, reach maturity, begin to decline and age and finally in many cases, they die. Key Forces in development

There are 5 key dimensions that are essential for building a model of organizational development:  1. Age of the company 
2. Size of the company
3. Stages of evolution
4. Stages of revolution
5. Growth rate of industry
The following are stages in the development of an organization: Birth stage
The primary purpose and activity of a firm at the birth stage is to set the direction of corporate development for the foreseeable future. To fight for survival in the global market, the firm needs to call on its innovation function to cope effectively with the changes in the customers’ needs. The focus is on how to provide effective solutions to customers. Survival stage

The survival stage is characterized by the strong organizational learning effect and increasing competitiveness. This stage involves increased production, new recruitment, and the development of strong brands through focused marketing activities. Companies continuously devote most of their time and money as well as production activities at this phase to enrich and deepen their organizational learning experience. Success stage

As firms move through the success stage, they enjoy superior financial performance relative to competitors but face declining learning capabilities. They always get profitable orders and turn in a high level performance throughout this stage.

Decline stage
The downfall of the organizational learning abilities and deteriorating profit and loss of market share outline the problems of the corporation at the decline stage. As firms suffer from the declining performance, they always face external problems such as the emergence of new competitors, fierce competition, falling prices. In addition, internal issues like overstaff, increasing expenses, and exhausted innovation might dull their motivation to stay in the industry. The declining phase may trigger the reflection of managers on launching the transformative change at corporate level. The lack of profit and loss of market share would be likely to provoke the demise of the firms unless they are determined to fight for their survival through transformative changes. Renewal stage

The renewing firms always experience three processes of change: unfreezing, learning, and refreezing. Evolutionary learning and change goes on all the time. Organizations are dynamic systems interacting with constantly changing environments. The companies endeavour to develop their learning capabilities after they have unlearned something that worked well in the past. They attempted to relearn to do the right things faster, better, and more productively than their competitors. Promoting new growth

During its life, a company goes through well-defined phases, each characterized by a gradual, evolutionary period followed by a shorter, revolutionary period. Phase 1 - Creativity
The first phase is characterized by the following: 
* Founders are technically or entrepreneurial...

References: * Adizes I, 1989. Corporate Life Cycles
* Beverland M, Lockshin LS
* Churchill NC, Lewis VL. 1983. The five stages of small business growth
* Buchele, R.B
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