Enterprise Survival Ability And Development Strategy Research On The Basis Of Life Cycle Theory

China’s enterprises are rising along with the rapid development of national economy.However, behind this brilliant story was bloody business history of ups and downs; Accordingto long term incentive report of Chinese enterprise2011issued by PWC (price water housecoopers) shows that the average life span for the small and medium-sized enterprises in ourcountry is only2.5years; Average life expectancy of Group enterprise’s is only7to8years,which is greatly shorter than Japan (12.5years), European and American (40years).Therefore, how to evaluate the viability of the enterprise, how to establish dynamicassessment system, how to identify the enterprise life cycle state became the starting point.This thesis took life cycle theory as the basis of the enterprise strategic decision; Detailedreviewed the theories of enterprise survival and the enterprise life stage characteristics. Ascreatively combine these two theories, this research founded an operational evaluation modelof enterprise survivability. On the other hand, a new identification model was developed tofigure out life cycle phase based on their survivability evaluation scores. I collected541private listed companies’ data as research samples, combining the previous study of enterprisesurvival theory, build up a reasonable evaluation index system of enterprise survivability.Then using the factor analysis to verify the key impact factor and work out the score andranking each year. In addition, as life cycle theory logic, this paper takes time as abscissa andsurvivability score as ordinate to build the enterprise life cycle diagram. Then find out lifecycle function via nonlinear regression. As a consequence, this study found that:1worked outthe evaluation dimensions and influencing factors of enterprise survivability.2analyzed536private listed companies and figured out the survivability scores and ranking for eachexample.3, after regression analysis, it is shown that20.34%of them belong to growth phase;24.81%is mature enterprises;34.33%is recession phase;4Combined with the actual case, Ianalyzed the four typical representative enterprise to elaborate their strategy selection.at lastbut not the least, this research will push relevant theory moving forward and enriched relevantempirical research in at large degree.