Seven stages of enterprise development
1. 1. Date of birth
The birth period of an enterprise is the first stage of its development. At this stage, the enterprise has just started, and entrepreneurs begin to enter the arduous process of starting a business with excitement.
The characteristics of the enterprise in its birth period: the enterprise is small-scale, non-bureaucratic and personal at the beginning of its establishment, and the top managers provide the structure and control system, and the organization focuses on survival and production and service of a single product. During this period, enterprises strive to survive in the market. Enterprises put all their energy into the technical activities of production and market, and the control of the organization is supervised by individuals within the enterprise.
From the characteristics of the enterprise's birth period, entrepreneurs are the core and focus of this stage, and innovation is the premise of the enterprise's survival and development.
1.2. Early childhood
Early childhood is the second stage of enterprise development. After the birth of the enterprise, after a period of tempering, it won many battles in the economic battlefield, achieved certain gains and promotion, and then entered the early childhood. During this period, enterprises focus on their environmental design, mainly optimizing equity resources and arranging enterprise benefit sharing.
At this stage, property rights are clear, entrepreneurs have the ability to allocate resources, enterprises have certain operating results, and entrepreneurs need to allocate. The allocation of equity resources determines the types of enterprises.
Before the formation of ownership structure, it is necessary to give priority to integration according to shareholders' personal preferences.
In addition, enterprises have created a certain amount of wealth in the process of operation, and enterprises need to distribute wealth reasonably in order to improve the enthusiasm of management actors in enterprises and promote the development of enterprises.
1.3. Childhood
The third stage of enterprise development is called enterprise childhood. The enterprise has made some achievements through the early struggle, and its income and performance can maintain a considerable level. During this period, enterprises have entered the stage of implementing agency design to achieve business objectives, and the framework of organizational structure and operating mechanism has laid the foundation for the future development model of enterprises.
After the previous stage, the enterprise optimized the equity resources and distributed the benefits, and made clear the development direction of the enterprise. However, without a reasonable organizational structure, it is difficult for enterprises to effectively implement their development strategies. This stage is the stage for enterprises to design organizational structure.
1.4. Growth period
The fourth stage of enterprise development is the growth period of enterprises. Like adolescence, this stage is a stage of vigorous development of enterprises, and the scale and performance of enterprises have been greatly developed and improved.
Growing enterprises, with certain resources and organizational capabilities, should begin to explore the internal and external environment of the company, ask questions and make evaluations. During this period, enterprises entered the stage of ideological design and sought development space for their long-term goals from the aspects of strategy, decision-making and information.
1.5. Mature
After the rapid development in the growth period, the enterprise has gradually entered the mature stage of growth. At this time, the enterprise has accumulated management experience. The enterprise system has been relatively sound, the growth has slowed down and entered a period of steady growth. During this period, the enterprise has designed systematic skills, matured in production, marketing and human resources, and formed its own core competence and competitive advantage.
In the development stage of enterprises, enterprises consume a lot of resources and invest a lot of money. The short-term goal of general growth enterprises is not profit, but continuous growth, and gradually form their own core competence in the process.
In the mature period of the enterprise, the management of the enterprise has achieved certain results, and it has begun to bring profits to the enterprise, and the funds invested by the enterprise have also begun to return. At this stage, enterprises pay attention to profit growth, stabilize their market position, master unique resources and create their own competitive advantages.
1.6. Stable period
After steady growth in the mature period, enterprises gradually formed their own core resource capabilities and competitive advantages, thus entering a period of stable development. During this period, the position of enterprises in the industry has been stable, and the operation and management of enterprises have reached a quite perfect stage.
During this period, enterprises carry out cultural concept design, corporate culture expansion and comprehensive image management, laying a spiritual foundation for the future development of enterprises.
1.7. Neonatal period
Enterprises enter a stable period and then develop into old age. Corporate performance declines, efficiency is low, cohesion is reduced, and adaptability is poor, leading to senile diseases. The problem is also an opportunity, and it is also an opportunity for enterprises to rise again and get a new life, so it is also called the freshman period. The newborn period of an enterprise is a period in which the enterprise is reborn in the new competitive environment through comprehensive reengineering.
With the development of enterprises, the external environment has also changed accordingly. Due to the progress of technology, the original strategy, corporate culture and corporate structure of enterprises are no longer suitable for the development of organizations. The newborn period of an enterprise is the period of enterprise reform.
During this period, enterprises fundamentally re-examine the basic beliefs that have been formed, that is, check the division of labor, hierarchical system, management system and bureaucratic system that enterprises have followed for a long time in the business process to see if they can adapt to the new environment and completely transform the unsuitable parts.
The seven development stages of an enterprise are divided according to the comprehensive strength of the enterprise and the time dimension of development. It is a universal law that the development of an enterprise must go through the above seven stages.
As the main body of market competition, enterprises are more and more aware of the powerful impact and opportunities brought by the integration of the world economy and the rapid development of knowledge economy. In order to survive and develop, enterprises must comprehensively improve their own quality and cultivate their core competitiveness.