Essay on The Theory Of The Corporate Life Cycle
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,” the company is beginning to gain popularity among consumers and the company begins to become more regulated. The product gains more attention which then leaves the company with the issues of sustaining enough inventory to maintain their demand. Companies also discuss whether to bring product over seas to reduce manufacturing cost. As the company grows and grows, the new issue is to make new products so that the company stays relevant thought the “maturity phase.” If the company does not begin to make new and improved products, then they face the “regeneration phase” where they are doing anything to try to stay afloat.
Unless companies adapt to new technology and consumer demand, the probability of having long longevity is very slim…