Conducting a life cycle analysis of a company
Posted: Tue Jan 28, 2025 6:24 am
If we talk about organizational problems, the following were urgent: it was necessary to review the functional responsibilities and incentive measures for sellers, as well as improve the technologies for managing the remaining goods.
In order to avoid entering the phase of business decline (after which the organization would cease its activities), it was decided to carry out all possible modernizations:
The business was brought online and began to be sold online. As a result, the product became closer to the buyers, plus the company was one step ahead of the competitors.
It was decided to leave only a spain email list limited selection of goods as a permanent assortment and then work on preliminary orders. This allowed us to offer customers a wider assortment and not accumulate large balances.
In order to retain customers and increase the average bill, all sorts of attractive promotions were constantly organized.
The product range list included items that are not available (or are almost not available, or are presented in a very limited form) in federal chain stores.
The sales and inventory accounting process was automated.
A system of additional motivational measures was developed for salespeople, and some of the functions that the manager had previously performed himself were transferred to senior salespeople.
Conducting a life cycle analysis of a company
Conducting a life cycle analysis of a company
When conducting a life cycle analysis of a company, it is necessary to take into account changes in the scale of production. If there is sufficient stability here and it is possible to produce exactly the amount of products that brings the greatest profit, this means that the time has come to move to a new qualitative level of development. Otherwise, there will be no movement forward and the business will gradually begin to fade away.
Any company, even a very successful one, which has held a firm position in the market for a long period, has certainly gone through all stages of the life cycle in the process of its development. This is how business expansion and gradual growth occur. Large firms, of course, feel more confident, while small ones have more modest resources. But no one is immune from unprofitable periods in development. In any case, the main goal is to ultimately make a profit from the business. And losses can be covered by income from profitable periods or reserves of previously accumulated capital.
Read also!
"Staffing: When it is beneficial and when it is prohibited"
Read more
Here, for example, are the losses that well-known large companies in the West had to bear in 1992:
General Motors - $23.50 billion;
Ford Motor — $7.39 billion;
IBM - $4.97 billion;
IRI - $3.81 billion;
DuPont - $3.93 billion;
Philips - $511.0 million;
Nissan - $448 million. This company suffered losses for several years in a row and finally put up for sale more than a third of its shares. Thus, another company (in all likelihood, it was the French concern Reno) gained control here.
In order to avoid entering the phase of business decline (after which the organization would cease its activities), it was decided to carry out all possible modernizations:
The business was brought online and began to be sold online. As a result, the product became closer to the buyers, plus the company was one step ahead of the competitors.
It was decided to leave only a spain email list limited selection of goods as a permanent assortment and then work on preliminary orders. This allowed us to offer customers a wider assortment and not accumulate large balances.
In order to retain customers and increase the average bill, all sorts of attractive promotions were constantly organized.
The product range list included items that are not available (or are almost not available, or are presented in a very limited form) in federal chain stores.
The sales and inventory accounting process was automated.
A system of additional motivational measures was developed for salespeople, and some of the functions that the manager had previously performed himself were transferred to senior salespeople.
Conducting a life cycle analysis of a company
Conducting a life cycle analysis of a company
When conducting a life cycle analysis of a company, it is necessary to take into account changes in the scale of production. If there is sufficient stability here and it is possible to produce exactly the amount of products that brings the greatest profit, this means that the time has come to move to a new qualitative level of development. Otherwise, there will be no movement forward and the business will gradually begin to fade away.
Any company, even a very successful one, which has held a firm position in the market for a long period, has certainly gone through all stages of the life cycle in the process of its development. This is how business expansion and gradual growth occur. Large firms, of course, feel more confident, while small ones have more modest resources. But no one is immune from unprofitable periods in development. In any case, the main goal is to ultimately make a profit from the business. And losses can be covered by income from profitable periods or reserves of previously accumulated capital.
Read also!
"Staffing: When it is beneficial and when it is prohibited"
Read more
Here, for example, are the losses that well-known large companies in the West had to bear in 1992:
General Motors - $23.50 billion;
Ford Motor — $7.39 billion;
IBM - $4.97 billion;
IRI - $3.81 billion;
DuPont - $3.93 billion;
Philips - $511.0 million;
Nissan - $448 million. This company suffered losses for several years in a row and finally put up for sale more than a third of its shares. Thus, another company (in all likelihood, it was the French concern Reno) gained control here.