LIFE CYCLE ANALYSIS OF BUSINESS ORGANIZATION FORMATION: STRATEGIC ASPECT

Abstract

This article examines the transformation of business life cycle concepts from a strategic perspective, emphasizing the unique challenges that a business organization encounters at each evolutionary stage. Particular attention is paid to the critical need to continuously integrate strategic foresight into managerial decision-making throughout the organizational life cycle. Furthermore, the study highlights that contemporary economic development–driven by intense globalization, rapid advancements in information technology, and the emergence of innovative digital tools for business process optimization–substantially heightens market competition. Consequently, enterprises must significantly improve the effectiveness of their management systems across all lifecycle stages, fully accounting for their long-term strategic development prospects and market adaptability.
Strategy formation, in turn, involves identifying the inherent opportunities, threats, strengths, and weaknesses of the organization. Within this framework, these critical strategic factors are systematically evaluated using widely recognized analytical tools, including SWOT, PEST, STEP, and TEMPUS methodologies, which allow managers to align internal capabilities with volatile external environmental conditions.
Based on a holistic approach to shaping the life cycle of a business organization in the modern economic environment, the authors propose that strategy should be conceptualized as an organization’s ultimate strategic goal. This focus ensures long-term institutional success and operational sustainability. Achieving this requires timely, adequate, and highly effective transitions between different life cycle stages, utilizing appropriate forms of strategy implementation and targeted methods for achieving core strategic objectives.