Business Life Cycles: From Growth to Decline
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Business Life Cycles: From Growth to Decline
Year 12 Business Studies Understanding the stages of business development Queensland Curriculum aligned
Brainstorming: Business Stages
Think about a business you know well What stages might it go through from start to finish? Share your ideas with a partner We'll collect responses on the whiteboard
The Business Life Cycle
Introduction Stage
New business enters the market High startup costs and low sales Focus on product development Building brand awareness Often operating at a loss
Growth Stage
Rapid increase in sales and market share Economies of scale reduce costs Competition begins to emerge Focus on market expansion Profits start to increase significantly
Maturity Stage
Market becomes saturated Sales growth slows down Intense competition for market share Focus on efficiency and cost control Peak profitability often achieved
Post-Maturity: Two Paths
{"left":"Steady State: Stable sales and profits\nConsistent customer base\nPredictable cash flow\nLimited growth opportunities","right":"Decline: Falling sales and market share\nOutdated products or services\nStrong competition from newer businesses\nNeed for major restructuring or innovation"}
Class Discussion
Can you think of a business currently in decline? What factors caused this decline? Could the business have avoided this stage? What strategies might help a declining business recover?