Stages of small enterprise life cycle: characteristics and specificity of management decision making

Abstract

The article analyzes the scientific approaches to determining the essence of «enterprise life cycle» concept. The inconsistency of approaches that consider of an enterprise life cycle as a specific temporary period for organization’s functioning is substantiated. The concept of «enterprise life cycle» is defined as a sequence of stages, whose change is caused by the parameters transformation of enterprise internal environment in conditions of dynamic changes in the competitive environment, during which an activity orientation, managerial tasks and management decision making methods change. The development of well-known concepts of an enterprise life cycle is summarized and systematized. The characteristic features of concepts are highlighted. It is proved that a life cycle concepts evolution has developed within the framework of process content and universal models. A critical analysis of approaches is carried out and the stages of enterprises life cycle, the crisis phenomena inherent in each of them and enterprises capabilities are systematized. The most popular concepts of L. Greiner and I. Adizes are analyzed in detail. Their advantages and disadvantages from the point of view of practical application are determined. The contradictions of scientific concepts regarding the list of life cycle stages, stages change sequences, internal and external factors affecting the stages change are established. The parameters of organization’s internal environment, which systematically determine the stages of its development, are highlighted and justified. The dependence of changes in the life cycle stages from parameters change of enterprise internal environment is analyzed. It is proved that the sequence of stages is not constant and can vary depending on the specific conditions of enterprise functioning. The requirements of each stage of the life cycle before making the necessary changes to the enterprise management system and the features of management decision-making methods are substantiated.