The life cycle of the organization and its main stage

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Each organization is a kind of living organism, which takes certain stage in its development.It all starts with the birth of the company, after which it is gradually gaining strength and influence, achieving prosperity and power.However, any lifecycle organization has its end, and then it eventually disappears from the consumer market.For a better understanding of factors that influence this process, you should carefully review all the activities of the company in stages.

So, we should start with a review of basic stages, which take place any organizational structure created for the purpose of making a profit as a result of doing business:

  1. infancy.Initially, there is an idea that is related to the satisfaction of any needs identified in the community.After that there are enterprising people who can translate this idea into reality, resulting in a business whose main objective becomes the needs of this or that sphere of the population in any business area.The life cycle of the organization at this stage includes registration, search for sources of investment, recruitment and entry into the market of production.
  2. Stage teamwork and focus on a common goal.After the company started its business activities, the team is starting to unite into a single command.In any case, each competent leader is committed to this, as the only reliable team produces new and promising ideas to achieve maximum success.There may be a good example of leading US and European firms, where the primary role given to the staff, so the life cycle of the organization must necessarily include this crucial period, which, in fact, the future of the company.
  3. stage of formalization and acquisition of a certain structure.The next stage is the gradual improvement of the institutional system, which is the emergence of new divisions, merger or division of the studied areas, approval of the statute, certain rules and credo of the company.There also appear informal customs and laws that could further stimulate both the executive staff and management team.Here, the life cycle of the organization begins to resemble a young and promising company, which approved a core command structure and successfully gaining momentum.
  4. Stage improvement.At this stage, the organization reaches the peak of its success, taking a leading position in the market of certain products or provision of relevant services.Here, however, the leaders in any case should not reduce the rate of growth of the company, as the disembodied ideas that can be offered to your employees and are not translated as a result of stopping the intensive development can be used by your competitors that you breathe in the back.It must necessarily take into account, and the vigorous activity of the company at this stage should include the search for new needs of the population and the supply of new kinds of goods and services.

For a better understanding of all that is happening now, it is better to use an analogy with the period of human life, as in this case, you will be able to more clearly imagine all those tasks and objectives facing the company at every step of its development.So, life cycle of organization include the following steps, which will show the main goals of the company:

- birth - goal: survival and profit maximization;

- childhood - objective: short-term profits and its gradual optimization;

- adolescence - objective: accelerated growth and planned profit;

- maturity - the goal: a systematic growth and good standing;

- prime - objective: balanced growth and social responsibility;

- full maturity - the goal: the maximum improvement of products and services, as well as the search for new approaches to the organization of production.If necessary, a complete re-engineering of the company resources

In conclusion, it should be said that every leader must not only know certain stage in the life of the company, but also take into account the goals and tasks facing the organization at every stage.Successful life cycle of the organization on the example of Coca-Cola Company and Mcdonalds argue that with proper guidance, you can stay afloat for decades after its founding.The main thing - a flexible approach and to have a competent marketing strategy that will periodically transformation of the company to the needs and demands of the population.