What are the conditions for doing business in circular-flow?

Conditions of business process cycle: primitive accumulation period, development period, maturity period, decline period or metamorphosis period.

1. Enterprises have different laws at different stages of development. A successful sustainable enterprise will go through four stages, namely, primitive accumulation period, development period, maturity period, decline period or transformation period. Enterprises need to meet many conditions if they want to continue to operate. Zhengrui Consulting believes that the most important basic condition of sustainable management is change.

2. Why do you say that the basic conditions for sustainable operation of enterprises have changed? Zhengrui introduced the development stage of the enterprise to everyone, saying that when the enterprise develops at a high speed to a certain stage, the enterprise begins to lead the development of the industry, has a certain market position and a considerable scale, and enters a mature stage, but at the same time, there are often problems such as cumbersome processes, bloated institutions and insufficient sensitivity to market reactions. When the internal problems of the enterprise accumulate to a certain extent, coupled with the influence of many objective factors such as policies and market environment, the enterprise is likely to enter a recession.

At this time, the enterprise is like a big ship in motion. It's very old and has some internal problems. When the wind and waves come, the big ship may be violently impacted or even sunk. However, we must be clear that internal factors determine external factors. When enterprises enter recession, internal factors play a leading role. At this time, enterprises are faced with two ways out: one is to enter the recession period, and the other is to break through the trend and enter the transition period. To take a step back, if it is inevitable for an enterprise to enter a recession, then as an enterprise manager, it can at least delay the arrival of the recession or shorten it. Under such circumstances, in order to break through the trend, enterprises have to change!

4. Before the enterprise develops to a certain stage, it is reasonable to exist because the enterprise is in the primitive accumulation period. From the aspects of product positioning, market demand and company team, the existence of enterprises is reasonable. But the market is changing rapidly. If it is reasonable today, it may be eliminated tomorrow. Those enterprises that are not sensitive to the market smell and weak in self-transformation ability will inevitably be eliminated.

5. In the cruel market environment, what is the root of enterprise survival? Still change! Therefore, the basic condition for enterprises to continue to operate is change. ? Enterprises should constantly seek the motivation for self-change according to different times, different situations and different policies. The core competitiveness of an enterprise is the ability to change itself.