The life cycle of enterprise
Management of the Company
Enterprise passes all stages of development from birth to demise of or playback.
The life cycle of enterprise - a set of steps that the company is in the period of its operation.
It includes all of the total time period from the beginning of creation and the natural ceased to exist or restored on a new basis with new (or renewed) warehouse owners and managers, new products produced and sold and services are provided to consumers.
"Birth" (1 year) of the company associated with the need to meet consumer interests, occupation and finding a free market "niche". The main goal on this stage is survival, which requires management features such as belief in success, willingness to take risks, big performance. Characteristic for the Phase birth is also a small number of partners. Special attention at this stage should be given to innovation.
Childhood (1 to 2 years) - this is very threatening period. The main threat associated with mismatch growth of the company compared with the change of management, which lags far behind. At this stage the majority of new businesses fail due to lack of experience and low level of competence of managers. According to authoritative «Bank of America», during this period affected about 90% of small firms. Therefore, the main goal at this stage - combining achieve short-term success and rapid growth on the one hand, the increasing competitiveness and retention rate of survival on the other.
Youth (3 to 5 years) - the period of transition from integrated management, which carried a small team of associates - founders, differentiated management, using simple forms of financing, marketing planning.
The main objective of the company in this period - this accelerated growth and tend to complete their seizure of the market. The stage of adolescence is characterized by the fact that intuitive risk assessment founders of the company are insufficient, and it forces managers to apply mathematical methods for assessing the likely costs as a result of risk.
During this period the company requires the emergence of highly specialized professionals with knowledge.
Maturity. The development company is in the interests of balanced at this stage of growth based on sustainable management structures and clear. During this period, usually head of the company is satisfied with logic and stability control system, which reduces its interest in the company to adapt to an environment that is changing, as well as the renovation and decentralization. The leadership of experienced managers coming and talented professionals often replaced by more "obedient." The maturity of the company related to its penetration into new areas, expansion and differentiation, but at this time actively nascent bureaucracy to manage.
The period of "early adulthood" (6 to 10 years) is characterized by the systematic growth of the company, during the intermediate maturity is balanced growth and ultimate maturity - the period of formation of the identity and image of the company.
The final stage of maturity (11 to 20 years) is dangerous because the leaders of the enterprise may be thought that moving forward to the growth and development is over, they lost interest in adaptation, renewal and decentralization, born of complacency.
If during early adulthood company becomes visible to competitors and to intermediate maturity fight with him, then the final maturity of this struggle reaches highest urgency. If company leaders do not take action, the company will begin to quickly lose its position in the market and is accelerated transition to the stage of aging.
Stage aging (21 to 25) is characterized by the domination of bureaucracy at all stages of management, the presence of bulky structures, large administrative apparatus, and the loss of ignoring new ideas.
The main task on this stage are fighting for survival and stability. Enterprise is on the verge of bankruptcy.
At the stage revival of the plant by a new management team, specific views which allow for the application of internal restructuring, change management structure, innovate.
In the now usually appears leader who is able to update the management structure and mobilize staff to achieve the enterprise. The main objective in this period - the revival of the company.
For effective management of its leader should consider how all the features of management at every stage, and the main factors influencing the revival of the company.