All businesses must go through at least 4 phases in there life cycle: 1. Establishment
2. Growth
3. Maturity
4. Post-Maturity
Each phase has its characteristics but the first 3 phases have something in common; they all have some sort of growth. Through these phases firms employ different tactics in order to satisfy customers, maximise sales which in turn leads to profit, which as we all know is what most business is set up to generate.
In the fourth phase; post-maturity the firm is faced with some choices, depending on many factors which may influence an owner they can make 1 of 3 choices. These choices are whether the company should enter a state of renewal which means that the company looks at business restructure and new market research and tactics, remaining at a steady state of growth which means that if the firm is happy with the way things are going, then they choose to keep things as is, and the last state decline which means that the owner has realised that customers have stopped buying the product and the cash flow has been seriously affected, which leads to the fact that borrowing money from any sane financial institution would be deemed almost impossible as they would not invest in your high-risk business also the risk of the firm having to move into a state of cessation (voluntary or involuntary).
A Harris Scarfe store in Tasmania
Poppy in Kings Cross
Orange King California Poppy ( Eschscholzia califo...All business and indeed every product sold by a business goes through this life cycle, and Poppy industries is no exception.
Poppy Industries was started by Poppy King at age 18 and her company making lipstick was well established by 1992 after having sourced manufacturers, secured capital and investment.
The business was then into the growth phase where it was able to have a positive cash flow with high...