Business Growth and Decline

Question 1

What are the 4 stages of the life cycle

Answer 1

establishment
growth
maturity
Post maturity- renewal, steady state, decline

Question 2

What are the features and challenged of establishment stage

Answer 2

sales- begin slowly
profit- slow occasional loss
Cash flow- period of constant cash outflow
Costs- high fixed costs for premises equipment, raw materials and insurance
Customers- attempts at gaining a large customer base and predicting customers needs
Main problem- lack of money due to cash flow shortages
Risk Level- Extremely high, especially within first 3 months- high degree of uncertainty

Question 3

What to cover when talking about each phase

(SPR Can Probably Cure Cancer)

Answer 3

Sales
Profit
Risk level
Cash flow
Problems (Main problem)
Costs
Customers

Question 4

What are the features and challenged of growth stage

Answer 4

Sales
Profit
Cash flow
Costs
Customers
Problems
Risk level

Question 5

What are the features and challenged of maturity stage

Answer 5

Sales
Profit
Cash flow
Costs
Customers
Problems
Risk level

Question 6

What are the features and challenged of Post Maturity stage

Answer 6

Sales
Profit
Cash flow
Costs
Customers
Problems
Risk level