The life cycle of the organization and its main stages

Each organization is a kind of living organism that passes through certain stages in its development. It all begins with the birth of the company, after which it gradually gains strength and influence, achieving prosperity and power. However, any life cycle of an organization has its end, after which it eventually disappears from the consumer market. To better understand the factors that affect this process, you should carefully analyze the entire activity of the company in stages.

So, it is necessary to begin with a review of the main stages that take place in any organizational structure created for the purpose of profit making as a result of doing business:

1. Stage of origin. First there is an idea, which is connected with the satisfaction of any need, revealed in society. After that, there are enterprising people who can translate this idea into reality, as a result of which a business is created whose main goal is to satisfy the needs of a particular sphere of the population in any economic field. The life cycle of the organization at this stage includes registration, search for sources of investment, recruitment and entry to the production market.
2. The stage of collectivism and focus on a single goal. After the company began its entrepreneurial activity, the team begins to gradually become one team. In any case, every competent leader seeks to do this, because only reliable team creates new and promising ideas aimed at achieving the maximum success of the company. A good example is the leading American and European firms, on which the primary role is given to personnel, so the life cycle of the organization must necessarily include this crucial period, on which, in fact, the future of the company depends.
3. Stage of formalization and acquisition of a certain structure. The next step is the gradual improvement of the organizational system, which consists in the appearance of new departments, the merging or separation of the areas studied, the approval of the charter, certain rules and the life credo of the company. There are also informal customs and laws that can further stimulate both executives and management. Here the life cycle of the organization begins to resemble a young and promising company that has approved the main command structure and is gaining momentum.
4. Stage of perfection. At this stage, the organization reaches its peak of success, taking the lead in the market for the realization of certain products or providing the necessary services. Here, however, managers should in no case reduce the growth rate of the company, because non-embodied ideas that can be offered by your employees and not implemented because of the stopping of intensive development can be used by your competitors who are breathing in your back. This should be taken into account without fail, and the active activity of the company at this stage should include the search for new needs of the population and the supply of new types of goods and services.

For a better understanding of everything that happens with the company, it is better to take advantage of the analogy with the period of a person's life, since in that case you will be able to more clearly imagine all the tasks and goals that the company faces at every step of its development. So, the stages of the life cycle of the organization include the following steps, where the main objectives of the company will be shown:

- birth - goal: survival and profit maximization;

- childhood - goal: short-term profit and its gradual optimization;

- adolescence - goal: accelerated growth and planned profit;

- maturity - goal: systematic growth and good standing;

- the flowering of the forces - the goal: balanced growth and social responsibility;

- Full maturity - the goal: maximum improvement of products and services, as well as the search for new approaches in the organization of production. If necessary, complete re-equipment of the company with technical resources

In conclusion, it should be said that every manager should not only know certain stages of the company's life development, but also take into account the goals and tasks that the organization faces at each stage. The successful life cycle of the organization, exemplified by the Coca-Cola and McDonalds companies, proves that with good leadership you can stay afloat for decades after your foundation. The main thing is to apply a flexible approach and have a competent marketing strategy that will periodically transform the company to the needs and demands of the population.