business growth and decline

Question 1

name the four stages of the business life cycle

Answer 1

establishment
growth
maturity
post-maturity

Question 2

list the 4 pathways of post maturity

Answer 2

renewal
steady state
decline
ceasation

Question 3

characteristics of the growth stage (5)

Answer 3

sales low
costs high-debt
low sales
need to break even
no customer base

Question 4

characteristics of the growth stage

Answer 4

sales rapidly increasing
establishing customer base/loyalty
bulk buying-less expensive
innovation
repay debts

Question 5

characteristics of maturity stage(3)

Answer 5

growth and market share begin to slow
increased competition
look of innovation +new products-changing trends

Question 6

characteristics of post-maturity(1)

Answer 6

changing trends

Question 7

characteristics of renewal(3)

Answer 7

business gets 2nd growth phase
innovation for new products
re invents business

Question 8

characteristics of steady state(4)

Answer 8

maintain maturity line
management avoids decline
business maintains market shares
increased competition

Question 9

characteristics of decline(3)

Answer 9

decline sales and market shares
didn’t respond to challenges
no competitive challenges

Question 10

characteristics of cessation(1)

Answer 10

business closes down

Question 11

what is diversification

Answer 11

a business branching of into a different market

Question 12

what is backward vertical integration

Answer 12

go back in the production of prducts

Question 13

what is forward vertical integration

Answer 13

moving up the chain of product movement

Question 14

what is horizontal integration

Answer 14

the purchasing of businesses in the same market

Question 15

what is the business life cycle

Answer 15

the different stages a business will go through in its life time

Question 16

key considerations during the establishment phase(5)

Answer 16

location
products
supplies
staffing
equipment

Question 17

key considerations during the growth phase (2)

Answer 17

budget finance,marketing

structure+staffing