Logically sequence the following stages in the organizational life cycle of a business firm:

A. Expansion

B. Survival

C. Consolidation

D. Start-up

E. Decline

Choose the correct answer from the options given below

Correct option is D

Start-up: This is the initial stage of a business firm where it is newly established. The focus is on setting up the business, developing a product or service, and gaining the first customers.
Survival: In this stage, the business faces various challenges and uncertainties. The primary objective is to survive and overcome obstacles such as limited resources, competition, and establishing a stable customer base. The focus is on sustaining operations and generating enough revenue to cover expenses.
Expansion: Once the business has successfully survived the initial hurdles, it enters the expansion stage. The focus shifts towards growth and increasing market share. The business aims to scale its operations, expand its customer base, and enter new markets. This stage involves investments in infrastructure, hiring more employees, and strategic planning for growth.
Consolidation: At this stage, the business has experienced significant growth and has established a stable position in the market. The focus is on consolidating its position by optimizing operations, enhancing efficiency, and strengthening its market presence. The business may also explore opportunities for mergers, acquisitions, or strategic partnerships to further solidify its position.
Decline: The decline stage occurs when the business starts experiencing a decline in its performance and market share. This could be due to various factors such as changing market trends, increased competition, or technological advancements. The focus shifts towards managing the decline, restructuring the business, and exploring options to revitalize or exit the market.