This is the period when the entire created structure is stabilized, its work is formalized and the main goal becomes high work efficiency.
That is, the company faces the task of obtaining the maximum possible profit, despite competition and high market saturation. This will require a competent management strategy and stable implementation of all work processes. The task of the management here is to ensure the effective implementation of internal processes and establish strict control over this.
At this stage of the company's life cycle, all processes are modified, more conservatism and bureaucracy appear in them. The manager reduces the number of delegated tasks, strictly controls expenses, decisions are not made quickly, they are thought over for a long time, the pros and cons are weighed. All efforts are reduced to maintaining the achieved level of development. Innovations are practically not implemented (for them, the management does not provide either funds or other support), the main goal is to maintain the position of the already released product on the market.
Stage of activity reduction
This is a period of decline in all vital indicators of the company: sales, profit, competitiveness. The company is desperately trying to stay on the market. There is a turnover in personnel, conflict situations arise more and more often, power is almost completely centralized. Without innovations, it is no longer possible to maintain profitability at the proper level. It is necessary to economize greatly, reduce expenses and, in fact, prepare for "death". Or try to revive again.
Revival
Not all companies are spain email list revived, but only those that understand the danger of the moment in time, are ready to fight and make serious efforts to get back on track. Then they begin developing new products, invest in this, plus modernize production and renew the management team. In addition, they eradicate bureaucracy and learn to make decisions faster. The revival stage in the life cycle of a company may not exist, or it may exist, but does not bring success or, on the contrary, brings the enterprise to a new level of development.
If the management correctly understands the company's position during each life cycle and takes competent actions, the business will take a confident position in the market and will generate the desired income.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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