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Essay / Research Paper Abstract
A 6 page paper that reports and discusses the five phases in an organization's life cycle. The paper discusses which may be most essential for a company, if an organization always dies, offers an alternative model and discusses what organizations need to do to stay in business. Bibliography lists 6 sources.
Page Count:
6 pages (~225 words per page)
File: MM12_PG5lfcob.rtf
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Unformatted sample text from the term paper:
is established by an entrepreneur who conceives the idea for the organization, forming a management group, writing a business plan and opening the business. The business moves to the growth
phase as soon as the entrepreneur writes the first check (Johannsen, 2009; Bogardus, 2004). 2. Growth Phase. The business becomes successful, revenues increase, more people are hired and so on.
It is at this point that the founders of the organization can no longer run the company by themselves (Bogardus, 2004). Some authors separate this phase into the more discrete
phases of fast growth and slow or no growth. In reality, businesses typically experience fast and slow growth intermittently throughout their life. Some organizations could even begin experiencing dry rot
symptoms after only a few years in business and must take steps to eliminate a severe decline (Johannsen, 2009). 3. Decline Phase. There are numerous reasons for an organization to
enter into a decline phase. These include: having too much debt, poor planning, ineffective leadership, inexperienced managers, failure to make changes as the market changes and not generating enough revenue
(Johannsen, 2009). 4. Death. If there is too much dry-rot the organization will die, i.e., it will shut its doors and go out of business. As already noted, the reasons
that will lead to death include having declining sales in comparison to competitors; profit margins becoming smaller and smaller; and debt loads that just continue to increase every years (Johannsen,
2009). No organization can stay alive when these factors exist. When revenue is significantly lower than expenses and the company is already debt-ridden, it will not be able to continue.
When market share continues to plummet, the company is placed in an untenable position, which relates directly to revenue versus expenses ratios. 5. Renewal. In this phase, the organization
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