Business Lifecycle

the seed stage

The first stage of a new company is known as the seed stage.

During the seed stage, a company's founders seek investments to build their business.

These investments usually support product development,market research, and business strategy.

That company attacted many angel investors during the seed stage.

Their company received impressive seed stage funding.

the startup stage

In the startup stage, a company establishes commercial operations.

During this stage, a company has a management team, a business plan, and a working product or service.

Companies in the startup stage usually begin earning revenue(赚取收入), but do not make a profit（盈利）.

Venture capitalists风险投资者  like to invest in startup companies because of their growth potential.

the growth stage

When a company reaches the growth stage, it begins to make a profit.

It often expends its operations （运营）and workforce.

During this stage, effective management and a mature business model are necessary to maintain growth.

Many private equity firms have invested in that company and expect it to grow quickly.

The company enjoyed a rapid growth in sales in its growth stage.

the maturity stage

A company reaches maturity when it has established a stable percentage of market share.

At this stage, the company's growth rate tends to be lower than at previous stages.

In order to boost growth, a company may expand into new markets or product categories.

For example, many Chinese smartphone companies in the maturity stage have expanded to India and Africa.

Efficient management can prolong the maturity stage of a business.

the decline stage

When a business starts to lose market share, it enters the decline stage.

Poor management, increased competition, and a shrinking market can cause a company to go into decline.

Unless action is taken, a company in decline could go out of business(倒闭).

After changing its focus, Microsoft stopped declining and tripled its stock price in four years.

They implemented a new market strategy to stop their sales decline.

Their sales suffered a huge decline due to technological changes.

Key Company Elements

mission statement 公司的宗旨

A company's mission statement defines its purpose goals and vision.

A good mission statement is more than just words.

A strong mission can motivate employees and attract new talent.

Their mission statement has remained unchanged for fifty years.

Their mission is to empower everyone to achieve their full potential and become a global citizen.

business strategy

A business strategy defines how a company will achieve its goals.

It is usually decided by a leadership(领导这个位置) team that includes the company's CEO ang Board of Director.

A business strategy typically covers a period of three to five years.

Frequent changes in business strategy often indicate a company is unstable.

They said that their current decline in sales would not affect their business strategy.

They need an innovative business strategy to increase revenue.

organizational structure

An organizational structure determines how activities are directed (定向方式)within a company.

These activities include a company's rules, responsibilities, and job functions.

If a company merges with another, it is likely to experience changes to its organizational structure

The future organizational structure of the company is still under discussion.

The company adopted a new organizational structure after being acquired(被收购后).

organizational culture

Company culture is a system of shared values and beliefs within an organization.

For example, Huawei defines its organizational culture as "wolf-culture".

It encourages its employees to work together, embrace challenges, and be sensitive to market trends.

If a culture dose not keep employees motivated, it may hurt a company's productivity.

The company encourages a culture of creativity and free discussion.

Its company culture is centered on the health and well-being of employees.

Business Actions

to explore the market

Before a business enters a market, it will explore it.

This means it will identify opportunities,research competitors, and examine customer needs in the market.

Their active exploration of Asian markets has proved a huge success.

to launch product

A product launch is when a company introduces a new product to the market.

It typically involves an advertising campaign and making the product available to purchase.

Apple launches always draw a lot of media attention.

The company revealed its new laptop at the launch event.发布会

to invest in research

A company invests in R&D (投资研发)to develop new products and remain competitive.

R&D can be risky because it involves trying new and untested ideas.

Before investing in R&D, a company should weigh the potential costs and benefits.

The best way for a big company to stay innovative is to invest in R&D

to collaborate with other businesses

Businesses collaborate together when they work on the same project

It involves sharing resources to achieve a common objective.

Good management and commucaion are critical for collaboration.

Uniqlo has collaborated with Disney to feature printed T-shirts(推出印花T恤).

The two companies have been negotiating a collaboration.

Airlin alliances(航空公司联盟) allow collaboration among members to provide service more effectively and efficiently.

to streamline business processes

A business streamlines its processes in order to improve efficiency.

This means simplify or reducing steps that do not add value.

Complicated business processes can hurt a company`s productivity.

They streamline the processor to cut the delivery time.

Management consulting company such as McKinsey can help streamline business processes.

Company Milestones

to establish

To establish a company means to start one.

It involves making a business plan, choosing an office, and applying for permits and licenses.

Many Intenet enterpreneurs established their businesses in their twenties

Many countries provide support for college students to establish their own businesses

to merge

When two company merge, they combine into a larger company.

A merger often happens when two companies of a similar size agree to enter a partnership.

Mergers allow companies to combine their resources and increase thier market share.

Mergers can help businesses better compete in the international market.

to acquire

to acquire a company means to buy it.

An acquisition usually happens when a larger company decides to purchase a smaller one.

Through an acquisition, the buying company can acquire new resources and a larger market share.

Before an acquisition, the buying company will analyze how profitable the acquisition could be.

They rejected an acquisition proposal from Apple.

When Microsoft acquired NoKIA,tens of thousands of employees lost their jobs.

to go public

When a company goes public,it transfers ownership from private individuals to the public.

After going public, a company can trade its shares on the stock market.

This means the company has access to more capital.

But it also means the company will have more pressure from shareholds to be profitable.

The company went public in September at thirteen dollars a share.

Mars has no intention to go public.

To go bankrupt

A company that is unable to pay its debts, can fail to bankrupt.

When a company goes to bankrupt, it assets to sold to pay off its debts.

The company was declared to  bankrupt by the court.

If we fail to recover loses immediately,we will go bankrupt.

Lehman brothers bankrupcy lend to earthquake in global  market.

A Changing Company

A:Hi,Randy. nice to see you again

B:hi,Lesli, It's been well.How is it going?

A:I'm doing great,you?

B:I guess some alright.

A:Are you OK?

B:Yeah. I'm fine.It's just there have been some changes in my company recently

A:Oh,what kind of changes

B:well,did you know that my company was acquired by Skybest

A:Really,that is a surprise.Why were they interested in your company

B:They acquired us to get our teconology.They are trying to expend their market share

A:That makes alot of sense.So you're woking for Skybest now

B:Yes, but I'm still doing the same job.

A:How about your team members.What happen to them

B:Well, my former manager chose to leave,but most of team has decided to stay for now.Still,one of my older co-worker told me that he could fired.

A:That must be very hard.

B:Yeah, they already brought in a new manager and I don't like him.Sometimes it is hard for me to get my ideas though.

A:What do you mean?

B:The way decisions are may has changed a lot, it used to be much easier.My former manager and I used to brain storm and inform new ideas quickly. But now I had to do a lot of paperwork and go through many procedures.

A:I understand. That happens a lot in big companies.Some procedures may seem unnecessary but they have to clarify responsibilities each person involved.

B:You maybe right.But sometimes I feel like I am not included in making  decisions.

A:Maybe you should talk to your manager about the way you are feeling.

B:Do you think that would help ?I am good at talking to people.

A:At least make your voice heard.Communication is key.

B:Um,I will thinking about it.Thank you

A:No problem.Should be order now. Waiter.