Question

Answer these two questions in detail without using the internet to copy any information from

1. What are the challenges faced by the business in the second stage of the business life cycle? Explain them each.

2. What strategies could be implemented in the second stage of the business life cycme to overcome these challenges? Explain them each.

The only thing you can use to help answer this question is a textbook and your knowledge please that's it. In ither words No plagiarism.

Answer 1

(1) Every business goes through mainly four phases of a business life cycle: initial, growth, maturity and decline.

Each stage has their own challenges and to overcome these challenges we should make proper strategies.

Here we'll discuss about second stage of business life cycle i.e growth..

During the growth of a business, Business has endured through the initial stage of the business lifecycle and is currently in its growth or survival stage. The business is consistently generating revenue and adding new customers. These recurring revenue will help pay for your operating expenses and open up new business opportunoties .

currently, business could be operating at a net loss or maintaining a healthy profit, but there could be some competition.

Mainly following challenges faced by the business during this stage:

(i) Cash flow management: this is a most common challenge faced by the business. Owners have to spend money to make money during a growth period, but this concept quickly get out of control and leave you in a precarious position.

(ii) Dealing with Increasing Customer:At this stage customers are increasing rapidly, to satisfied and provide good services to all the customers and respond the complaint made by the customer become difficult, but to sustain the customer it is important

(iii) Accounting Management: At this stage to manage the accounting properly is very important,to know the exact position of the business, true amount of revenue, expenditure and cash flow etc. Due to huge amount of sales there are a lot of reason for improper record of all transaction

(iv) Effective Management: To maintain the growth of the business and to take the business to next level and for dealing with increasing revenue increasing customer and new competitors effective management system very important

(v) Market Competition: In current scenario , market competion become a big challenge for the business at the growth stage.Others recognise the opportunity and enter the industry. Many small business owners are unprepared for the realities of fierce competition and they quickly lose their way in an attempt to respond.

(2)Following strategies could be implemented to overcome these challenges:

(i) Manage the cash carefully during these times turn to your channels that produce consistent sales and work to maximize their contribution to your bottom line.

(ii) Responding to competition: keep your focus on what you do best and continue to communicate your unique value proposition to prospects and customers.

(iii) Keeping up with market changes: We have to be prepared for constant change.internalize the idea that disruption is the new normal and work on training your employees to be agile in the face of uncertainty.

(iv) Following Customer retention strategies must apply for business these help to maintain customer loyality

(a) Reward your customers.

(b) Send thank you notes.

(c) Return Client phone calls promptly.

(d) Build a customer database.

(e) Keep in touch,Provide excellent customer service.

(f) Target most valuable customers.