QCAA Business Life Cycle

What activities are involved in the seed stage?

• Closing down operations

• Initial testing and research into the industry

• International expansion

• Hiring a CEO

What is a major challenge of the seed stage?

• High revenue generation

• Time, energy, and money required to develop the idea

• Decreasing market share

• Excessive profit margins

What is the biggest success factor for an emerging business during the seed stage?

• Hiring employees

• Developing a business plan

• Building a customer base

• Marketing the product

What is a potential action for a business owner during the seed stage?

• Downsizing the company

• Upskilling in key areas

• Launching a new product line

• Merging with another company

What is a business likely to do to ensure key functions are completed during the seed stage?

• Hire external consultants

• Rely on the skills of founders or employees

• Purchase new technology

• Expand to new markets

What does the growth stage of a business involve?

• Declining market presence

• Movement into an established or expansion state

• Reducing workforce

• Decreasing product lines

What does the growth stage indicate about a business?

• It is declining

• It is either growing into new markets or establishing its presence

• It is reducing its workforce

• It is limiting its product range

What can arise when resources are overextended during the growth stage?

• Increased profits

• Cash-flow problems

• Employee promotions

• Market expansion

What is a sign of the growth stage in a business life cycle?

• Decreasing sales

• New competitors entering the market

• Reduced employee turnover

• Increased office space

What strategic decisions are needed in the maturity stage?

• Reducing product quality

• Preparing for increasing competition

• Decreasing market share

• Limiting customer service