Showing posts with label human life cycle. Show all posts
Showing posts with label human life cycle. Show all posts

Sunday 12 January 2014

The question of how to allocate profits is linked to where a company is in its life cycle




One of the most important decisions management makes is how to allocate profits.

The decision of what to do with earnings is linked to where a company is in its life cycle.

The question of how to allocate profits is linked to where a company is in its life cycle.

1.  Development Stage

In the development stage, a company loses money as it develops products and establishes markets.

2.  Rapid Growth Stage.

The next stage would be rapid growth, in which a company is profitable but growing so fast that it may need to retain all earnings and also borrow funds or issue equity to finance this growth.

3.  Maturity and Decline

In later stages, maturity and decline, a company will continue to generate excess cash, and the best use of this cash may be allocating it to shareholders.

Wednesday 3 April 2013

Human Resources: 'Social Engineering in the 20th Century'



Behaviour modification.
Behaviour is predictable, therefore it is controllable.
This world is driven not by love, but by fear.