Question

1)At which organizational life-cycle stage is Mc Donalds at the moment?

2)How did the organization move through organizational life-cycle stages so far? (Try to map the events in the organization’s history to the stages of the organizational life cycle)

3)What were the crises that the organization experienced during the stages of its life cycle? How did it overcome these crises?

Please answer question 2 and 3

Answer 1

Note -As require in Note Ans 2 and 3

Ans 2-

Organizational life cycle having four stages-

· Introduction – in this the initial time company understand the consumer response over the product/ organization. The principle of this stage is the build the demand of the product and get into the hands of consumer. The initial the cost is slightly high.

· Growth – In this stage the product of an organization is liked by the consumers and the increasing sales. The concept in proven and the sales increase. As the market expanded to present in market the price is reduce and the product work on high demand to get the profit over it.

· Maturity – When the product reach to the maturity level the sales is drops. companies often begin innovating to maintain the market share, changing and developing the product meeting the new consumer requirement.

· Decline- In this stage the product sales drop significantly and the consumer behaviours changes as there less demand of product. The company lose the market share and the competition tends to cause sales down.

Ans 3-

The most of the crises created in between the maturity and decline phase as shown in picture-

Crises are –

- New order not coming.

- Demand goes down.

- Reduce the consumer liking.

As the crises are come in every stage of life cycle but they are get manage by the team initially.

Like – lack of responsibility and other.

But during the maturity to decline phase the crises creating the major concern to organization.

If in this stage if organization is not taken the good step then the organization is gone under the death mode.

To over overcome from crises – organization has to take some good decisions like –

- Motivate the employee to come with innovative idea.

- Improve the feature of product that can attract the consumer.

- Can work on price discount.

- Can improve on the quality of product with same competitive cost (improve the life of product).

- Can work to provides the offers.

- Increase the product type in the same range of product.