Critical Business Asset for Strategic Global Change
Chapter Three: The Lifecycle of Organizations and the Role of Corporate Communication
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The Lifecycle of Organizations and the Role of Corporate Communication
This chapter investigates four phases that corporations experience—birth, growth, decline, and, if they are sustainable, a rebirth—starting the cycle all over again. New corporations in the birth stage make the transition to the growth stage, or their “adolescence.” Chinese companies have elements of the growth stage. Companies in the automobile industry, recently in decline, are now undergoing a rebirth. Companies that can trace their history over a century or more are excellent examples of corporations that are sustainable and have maintained their capacity to be “reborn.”
Rapid changes in technology and in global business practices require creative strategic integration of knowledge to “connect the dots,” to see the patterns and cycles that others with more narrow training and experience do not. A corporation experiences stages of development in its lifetime similar to the lifecycle of animals, plants, and humans—birth, growth, maturity, decline, death. The same sequence holds true for a business during the cycles of its life. The stages are predictable, yet every industry experiences these stages differently. Stages last longer for some and move quickly for others, and companies in the same industry may be at different lifecycle stages. In order to be sustainable in this dynamic environment, executives must focus, monitor, change, and adapt constantly.
A typical business law course at a US university would examine three phases in the lifecycle of a...
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