Research On The Sustainable Growth Of The Firm Based On Life Cycle

There were several directions to study the sustainable growth of the firm, including the"enterprise bionics","enterprise system theory", and"enterprise health theory". But these points just analyzed the laws using a bird eye from a macroscopic position, and could not provide the operational help for enterprises. If enterprise's entire life stage took a spot analyzes, certainly could not realize the enterprise's sustainable growth. So, it is necessary to cut apart the growth stage, and make different growth strategies at different growth stages, and instruct enterprises to grow up step by step. Corporate life cycle (CLC) is just a tool to solve this problem. Based on CLC theory, the growth stage was divided into courtship, infancy, go-go, adolescence, prime, stable, aristocracy, recrimination, bureaucracy, and death. So, the sustainable growth of firm would be defined as how to transfer from the lower stages to the higher stages, and reach the prime stage and remain this stage for the best.This paper tried to discuss the sustainable growth of enterprises in terms of the lifecycle theory, announced the growth characteristics of enterprises through analyzing the law that enterprise's life evolved, and proposed the growth strategies from infancy to meridian and the strategies of how maintain the meridian life.Firstly, this paper summarized three visual angles which reasearching the theory of sustainable growth. These three angles were"enterprise bionics","self_organization theory", and"corporate life cycle". Secondly, this paper proposed the basis to cut apart the life stage, and the key growth genes through analyzing the characteristics of enterprises which were regarded as a life individual. This paper also analyzed the HP's growth law based on the empirical study in terms of the lifecycle theory. Thirdly, firm was regarded as a complex system which composed of strategy decision system, staff learning system, process optimization system, customer responsing system, financial control system, and environmental adaptation system. Then, a quantitative model of firm growth based on the lifecycle had built to define the different stages and the different characteristics. Finally, this paper had proposed the management characteristic, growth direction and growth strategy for enterprises during the course of stepping into the golden time, and pointed out the"reversing strategy"when enterprise has stepped into glide stage.The study of"the sustainable growth based on lifecycle"adopted the quantitative method to propose the growth model, and used the qualitative research approach to provide the strategic choice for enterprises which lied in different stages. With this two methods'combination, the research findings would be playing an important role for enterprises'business running.