A business will usually go through a clear set of stages that will make up its organisational life cycle. These stages include introduction, early growth, continuous growth, maturity and decline. The first stage, the introduction state, is the start-up phase where a business decides what its core strengths and capabilities are and starts selling its product or service. At this early stage, the founder or founders will be a part of every aspect of the daily process of the business. The main goal at this stage is to take off to a good start and make a place in the market. The next stage, the early growth phase, aims at increased sales and more development. The focus at this stage remains on the original product or service but the effort is to increase the market share and venture into related products or services. The main goal is to move the founder to a more managerial role so more time is spent on managing and building the business. At this stage, documents and policies need to be developed so any member of the organisation can see the business any time. The third stage, the continuous growth stage, requires a systematic structure and more formal relationships among its participants. At this stage, the resource requirements of the business need careful handling. The focus is on the expansion of the business, keeping in mind its core strength and capability. A formal organisational structure and a clear delegation plan are important at this stage. At the fourth stage of maturity, a business often slows down as the level of innovative energy may have become weak and the formal structures may have become obstacles. A lot of care is required to prevent decline.
The resource requirements of a business need careful handling at which stage?
