M3 Organizational life cycle

Organization as an open system

Startup/Enterpreneurial stage

• Characteristics: initial stage, marked by formation of the business idea, product dev, market entry

• Key focus: providing the viability of the concept, securing initial funding, gaining a foothold in the market

Growth stage

• Characteristics: rapid growth in terms of sales, market share, expansion. Estabilished operational processes, customer base expands

• Key focus: shift to scaling operations, brand recognition, capturing a larger market share. Companies may diversify product/service offerings.

Maturity stage

• Characteristics: stable phase - growth rates slow down, market saturation may occur. Intense competition and focus shifts to efficiency and profitability

• Key focus: optimization of operations, cost control, customer loyalty maintaining - critical. 

• Key metrics: market share & profitability

Revitalization/Transformation stage

• Characteristics: significant changes in strategy, leadership, cultre, business model

• Key focus: reinventing the organization to regain competitiveness and relevance

Decline stage

• CHaracteristics: decline in sales, market share or relevance due to changing consumer preferences, tech advancements, increased competition

• Key focus: strategic decisions needed to adapt and renew or face decline. May involverestructuring, rebranding, introducting new products, exploring new markets