Question

Some evidence suggests that many businesses first grow and then stabilize, while other evidence suggests that businesses grow at an approximately steady rate. How may we reconcile these ideas? Suggestions?

Answer 1

Ans.

- The business life cycle is the movement of a business in stages after some time and is most regularly separated into five phases: dispatch, development, shake-out, development, and decay.

- Each organization starts its tasks as a business and for the most part by propelling new items or administrations. During the dispatch stage, deals are low, however gradually (and ideally consistently) expanding

- In the development stage, organizations experience fast deals development. As deals increment quickly, businesses begin seeing benefit once they pass the equal the initial investment point.

- During the shake-out stage, deals keep on expanding, however at a more slow rate, for the most part because of either moving toward showcase immersion or the passage of new rivals in the market.

- At the point when the business develops, deals start to gradually diminish. Overall revenues get more slender, while income remains generally stale.

- In the last phase of the business life cycle, deals, benefit, and income all decrease. During this stage, organizations acknowledge their inability to broaden their business life cycle by adjusting to the changing business condition

Yes I is true that business who see lot of competition and technological advancements grow , stabilize and disappear because either they have not been able to keep pace with technological advancements. For e.g. Nokia and Blackberry in mobile marke.t

However there are businesses which continue to grow for e.g. Pepsi, Coke , Marlborro etc., because these are essential goods which people consume because of their habits and these business don’t disappear so easily.