Corporate Life Cycle Summary
Article: The Theory of the Corporate Life Cycle
James, B. G. (june, 1973). The Theory of the Corporate Life Cycle. Long Range Planning, 6(2), 68-74. Retrieved April 12, 2012.
The first crucial mistake that business owners make when initially developing their company is believing that their company will last forever even is they have not adopted new technology and consumer demand.
Business owners tend to forget that during the “emergent phase,” funds and capital are initially going to be extremely low. The product has not yet gained popularity among consumers, which then makes the beginning stages of the company much harder to navigate through. Throughout the “growth phase,” …show more content…
Unless companies adapt to new technology and consumer demand, the probability of having long longevity is very slim and non existent.
“Until management recognizes that these prerequisites are fundamental to the continued existence of a company, the corporate life cycle theory will remain in the laboratory stage of development and will not emerge as an effective predictive tool for corporate long range planning. “ (74)
Relation to Business Owners:
It’s crucial to recognize these stages when initially starting a business. Most business owners tend to forget the to recognize the consumers need for products and how their product can potentially infiltrate the market in a positive manner. According to the article, if business owners take into consideration these phases of a long life cycle, they will have a better chance of keeping their business afloat for future years and generations to …show more content…
A business plan maps out what are the exact goals for the business are, its market, and the capital that is needed from investors.
Identify your type of customer and market. If you make your market too vague and try to dabble in many different areas, people can become confused about your brand, your intentions, and what you 're trying to accomplish and sell.
Owners need to evaluate whether what they are trying to introduce into the market has actual potential for customers to buy.
Choosing a legal structure determines whether it is necessary to bring investors or partners in through signing contracts. Owners need to determine whether their business has sole proprietorship, a partnership, or is considered to be a cooperation. By doing this, this will determine the taxes that will potentially need to be filed in the future.
“Think of the process as a way to better understand the opportunity and the risks. It may even show you that the business is too tough. If that’s the case, you want to know it as soon as possible.”
“Immerse yourself in the market. What are the major trends? How will they help or hurt your venture? Along with doing Google searches, you should also check out trade publications and association Web