Question

The Nature of Problems Beyond Stage IV.” Please respond to the following:

• Describe Stage V, Stage VI, and Stage VII of organizational growth. Within each of these stages, what is the single biggest challenge to an organization?
• Discuss the unique challenges of revitalization in Stage VII.

Answer 1

1. Stage V: This stage is known as the 'diversification' stage and comes after an organization has finished the consolidation stage. Stage V can occur because of two main reasons -

(I) the organization's item life cycle has come to the mature part of S-curve.

(ii) New opportunities have been created by the core product.

challenge to an organization in stage V is to how to get over the problem of market saturation. To overcome this challenge an organization should develop new products for existing markets or develop new markets for existing items. Failure to accomplish diversification can prompt stagnation or bankruptcy. It can even outcome in offer of the concerned company.

Stage VI: This stage is known as 'integration'. After fruitful diversification an organization is in the need to develop an infrastructure that will effectively and efficiently manage and support the different individual business entities that came into existence because of diversification.

challenge to an organization in stage VI is to guarantee that appropriate resources and frameworks (both operational and in addition managerial) are set up to support the new and different company that the organization has turned out to be after diversification. Organizational structure ought to be appropriate for the organization overall as well as for every last divisions of the organization.

2. Stage VII is the phase of 'decline and revitalization'.

The unique difficulties of revitalization are the need to re-conceptualize the business and make the organization entrepreneurial in nature once again. The center strategy of the organization will likewise must be re-imagined to take into consideration the present status of the organization with regards to nature in which it contends and works.

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