Business Life Cycle is a concept for managing the inter-relationships in a business unit. The concept proposes a sequential framework for understanding how these relationships affect the organizations’ objectives, functions and results. The business life cycle is responsible for understanding the inter-relationships between the units involved in the businesses organization. It is not only used to design and develop the processes and structures of the company but also as an effective performance management tool.
The concept of the business life cycle is based on the ideas that organizations operate through the stages of growth. These stages include acquisition, growth, expansion, differentiation, differentiation expansion, differentiation and maturity. Acquisition is one of the phases in the life cycle. In this stage of the business life cycle, the organization needs to acquire companies with good competitive advantage. There are two types of acquisition activities: physical and financial.
The first stage in the life cycle of the organization involves the organizations needs for new assets. Acquisitions should be done in order to get a competitive advantage. This stage involves research, analysis, assessment and negotiations with the acquiring companies.
As companies gain their competitive advantage they can increase their revenues and improve their profit margins and assets. In this stage of the life cycle, it is also important to ensure the continuous development of the organization through a process of innovation and the continuous improvement of products and services. Through this process the organizations goals are met. In order to achieve the goals of the organization, the management team and the executives must ensure continuous improvement of the organization’s processes, procedures and processes of operation.
Growth is another stage in the life cycle of the organization. Growth is defined as the growth of the organization and thus it is the continuous increase of revenues and assets. Growth can be achieved through acquisitions, product development, or strategic partnerships. In addition, growth can also be achieved through investment or through the rationalization of the business. In both the case studies, the expansion of the organization is able to expand the level of profitability. Growth stage is the most important stage of the life cycle of an organization.
Diversification of resources and activities is another term for differentiation. This stage can be achieved through the mergers and acquisitions. It is also important to continue to develop the organization. In order to continue to improve the organization’s processes, procedures and processes of operation, it is essential to continue to develop its internal and external resources and activities. This process has to be done in order to ensure that the organization remains competitive and is able to grow and adapt to the changes in the market conditions.
Diversification of activities or differentiation of resources is also used to improve the productivity of the organization. By developing the internal resources of the organization, the organization is able to add new activities and attract more customers thereby generating revenues. In this way the organizational resources are continuously being used to generate revenue.
In summary, the life cycle of an organization is divided into three main stages: acquisition, growth, and differentiation. Through these stages the organizational resources are developed, which leads to the success of the organizations. Organizations through the stages of growth, differentiation of resources reach different levels of success in the life cycle of the organization.