Lect 6 Organisational Life Cycle 1.ppt

ORGANISATIONAL DILEMMA
BM036-3-2
Organisational Life Cycle:
Birth, Growth, Decline, and Death
Learning Objectives
Appreciate the problems involved in surviving the perils anizational birth and what founders can do to help their anizations to survive
Describe the typical problems that arise as anization grows and matures, and how anization must change if it is to survive and prosper
Learning Objectives
Discuss anizational decline occurs, identify the stages of decline, and how managers can change anizations to prevent failure and eventual death or dissolution
anizational Life Cycle
Organizational life cycle: a sequence of stages of growth and development through anizations may pass
The four principal stages of anizational life cycle:
Birth
Growth
Decline
Death
Figure 11-1: Organizational Life Cycle
Organizational Birth
Organizational birth: the founding of anization
Occurs when entrepreneurs take advantage of their skills petences to create value
A dangerous life cycle stage associated with the greatest chance of failure
Dangers are great because of the liability of newness.
Liability of newness: the dangers associated with being the first in a new environment
Developing a Plan for a New Business
Included in the business plan should be the same basic elements as in the product development plan:
A statement of anization’s mission, goals, and financial objectives
A statement of anization’s strategic objectives, including an analysis of the product’s market potential, based on a SWOT analysis
Organizational Birth
A list of all the functional anizational resources that will be required to implement the new product idea essfully
A timeline that contains specific milestones for the entrepreneur and others to use to measure the progress of the venture
Timeline with milestone
BASIC GANTT EXAMPLE
BASIC GANTT EXAMPLE
BASIC GANTT EXAMPLE
Timeline with milestone