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Quote of the Day

“The conventional definition of management is getting work done through people, but real management is developing people through work.„

Agha Hasan Abedi

Life Cycle

The concept of Life Cycle in management refers to the notion that industry, products and organization go through stages of birth, growth, maturity, decay and death, similarly to all living organism. At different stages, different management approaches or strategies are required. Some examples are given below:

Product Life Cycle
  • Introduction: Strategy=product and market development
  • Growth: Strategy=product improvement and promotion
  • Maturity: Strategy=differentiation
  • Decline: Strategy=hold, harvest or divest

Enterprise Life Cecle
  • Birth: Strategy=entrepreneurial
  • Growth: Strategy=delegation
  • Maturity: Strategy=system
  • Decline: Strategy=diversification, risk management
  • Death: Strategy=harvest, divest

30.05.2011. 10:58

Integration

A business strategy aiming to increase profitability or efficiency or to reduce risk by adding related business activities into the scope of operation. There are 3 types of integration:
  • Backward Integration - adds activities done by suppliers or suppliers of suppliers, i.e. upper stream of the supply chain.
  • Forward Integration - adds activities done by customers or customers of customers, i.e. down stream of the supply chain.
  • Horizontal Integration - merges or acquires a business in the same line.

Integration is mostly done through merger and acquisition.

30.05.2011. 10:54

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