scholarly journals Using the Boston Matrix at Identification of the Corporate Life Cycle Stage

2015 ◽  
Vol 63 (1) ◽  
pp. 235-243 ◽  
Author(s):  
Zdeněk Konečný ◽  
Marek Zinecker
Keyword(s):  
Life Cycle ◽  
Product Life Cycle ◽  
Life Stage ◽  
Life Cycle Stage ◽  
Economic Cycle ◽  
New Model ◽  
Market Shares ◽  
Corporate Life Cycle ◽  
The Individual ◽  
The Impact

The main aim of this article is to develop a new model supporting the identification of the particular corporate life stage within the corporate life cycle. This model will be derived from the Boston matrix. The main reason for using this approach as the base for making new model of the corporate life cycle is the fact, that every quadrant of the Boston matrix can be assigned to one phase of the product life cycle and there is supposed, that the phase, in which are most products, determines the phase of the corporate life cycle. For application the Boston matrix by identification phases of the corporate life cycle is necessary to define low and high values of both its variables using some quantities from the model of corporate- and market life cycle by Reiners (2004). So the interval of low and high sales growth is determined by comparing sales of the company and sales of the market and furthermore, there is considered the rate of inflation to eliminate the impact of price changes. And for determination low and high market shares, there are compared the shares of sales and shares of total assets. After that, there will be possible to identify all the quadrants and thus all the individual phases unequivocally, which is the basic advantage compared to most existing models of the corporate life cycle. The following aim of this article is to compare the occurrence of individual phases, identified by this modified model, depending on the sector sensitivity to the economic cycle, measured by the coefficient of correlation between sales on the market and GDP. There are selected two sectors of the Czech economy, namely one cyclical and one neutral sector. Subsequently there is selected a sample of companies from both these sectors. The data are collected from financial statements of companies and from analytical materials by the Czech Ministry of Industry and Trade and by the Czech Statistical Office. On the basis of this research, there were recorded differences especially in the number of companies in the phases of stabilisation and decline, depending on the sector sensitivity to the economic cycle.

scholarly journals The Interplay between Working Capital Management and a Firm’s Financial Performance across the Corporate Life Cycle

2020 ◽  
Vol 12 (4) ◽  
pp. 1661 ◽  
Author(s):  
Zanxin Wang ◽  
Minhas Akbar ◽  
Ahsan Akbar
Keyword(s):  
Life Cycle ◽  
Firm Performance ◽  
Financial Performance ◽  
Life Cycle Stage ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Conservative Strategy ◽  
Corporate Life Cycle ◽  
The Impact

The purpose of this study is to examine the impact of working capital management (WCM) and working capital strategy (WCS) on firm’s financial performance across different stages of the corporate life cycle (CLC). We use Pakistani non-financial listed firms nested in 12 diverse industries over a period of 2005–2014 as the research sample and employ the hierarchical linear mixed (HLM) estimator, which can process multilevel data where observations are not completely independent. The empirical findings reveal that, overall, WCM is negatively associated with firm performance. However, this association is not static across different stages of a firm’s life cycle. For example, a negative association is more pronounced at the introduction stage followed by growth and decline stages, whereas WCM does not significantly impact the performance of mature firms. Likewise, WCS also causes varying effects on the financial performance across the CLC. A conservative strategy at the introduction, growth, and decline stages negatively affects firm performance, suggesting that these firms should adopt an aggressive strategy. Nevertheless, management of sample firms did not account for the respective life cycle stage while formulating a WCM strategy, which can seriously compromise their financial sustainability. These findings suggest that firms require customized WCM policies and WCS to attain sustainable financial performance at each stage of firm life cycle. Thus, managers should not overlook the significant role of CLC stages in their financial planning to ensure the sustainable functioning of the enterprise.

scholarly journals The Effect of an Acquirer’s Life Cycle Stage on the Performance of M&As: Evidence from Mega and Non-Mega Deals in the US

2019 ◽  
Vol 13 (3) ◽  
pp. 7-18
Author(s):  
Svetlana Grigorieva ◽  
Angelina Egorova
Keyword(s):  
Life Cycle ◽  
Life Cycle Stage ◽  
Growth Stages ◽  
Stock Market Reaction ◽  
Life Cycle Stages ◽  
Thomson Reuters ◽  
Corporate Life Cycle ◽  
Main Determinants ◽  
The Impact ◽  
A Performance

A substantial body of academic literature continues to investigate whether M&A deals create or destroy shareholdervalue and what are the main determinants of M&A performance, but the results are still inconclusive. In this paper, weinvestigate the impact of corporate life cycle on M&A performance from the perspective of acquiring firms.We shed additional light on the performance of M&A deals from the perspective of bidders’ life cycle stages and thedeal size . We single out mega deals, where activity remains upbeat, and compare their effects on M&A performancewith the effect of non-mega transactions. In contrast to previous studies in the area, we identify four life cycle stages(introduction, growth, maturity and decline), whereas the existing literature mostly focuses on three life cycle stages.Our sample includes 2413 US domestic M&A deals from 2003 to 2017, and consists of 386 mega deals and 2027 nonmega transactions. The data for analysis were obtained from Capital IQ, Bloomberg and Thomson Reuters Eikondatabases.Based on the event study method and regression analysis, we find that stock market reaction is positive for M&A deals inthe US and this reaction is more favourable for non-mega acquisitions than for mega M&A deals. We show that nonmega deals outperform mega transactions for acquirers at the introduction and growth stages of the business life cycle.Our results also indicate that benefits for shareholders from acquiring firms decrease on average with the lifecycle of anorganisation, but the returns for shareholders are positive in both cases. By contrast, in mega deals, shareholders receivenegative returns when the acquiring firm is at introductory life cycle stage.The scientific novelty of this paper is reflected in our contribution and expansion of the scope of research in this field.There is a relative scarcity of analysis examining M&A deals from the perspective of life cycle stage, and our addition of afourth category of analysis in this area, along with a focus on the value of the deal, expands the range of methodology forfuture research. This research is open to further expansion in different markets and our methodology is readily adaptablefor the addition of further analytical variables. Importantly, with the validation of our research hypotheses and theconfirmation of significant results, we provide a useful new tool for managers and professionals engaged in M&A dealsto actively gauge and forecast practical implications of their deals.

scholarly journals Attributional & Consequential Life Cycle Assessment: Definitions, Conceptual Characteristics and Modelling Restrictions

2021 ◽  
Vol 13 (13) ◽  
pp. 7386
Author(s):  
Thomas Schaubroeck ◽  
Simon Schaubroeck ◽  
Reinout Heijungs ◽  
Alessandra Zamagni ◽  
Miguel Brandão ◽  
...  
Keyword(s):  
Life Cycle Assessment ◽  
Life Cycle ◽  
Environmental Impact ◽  
Product Life Cycle ◽  
Sustainability Assessment ◽  
Consequential Life Cycle Assessment ◽  
Modelling Framework ◽  
Potential Environmental Impact ◽  
Reference Environment ◽  
The Impact

To assess the potential environmental impact of human/industrial systems, life cycle assessment (LCA) is a very common method. There are two prominent types of LCA, namely attributional (ALCA) and consequential (CLCA). A lot of literature covers these approaches, but a general consensus on what they represent and an overview of all their differences seems lacking, nor has every prominent feature been fully explored. The two main objectives of this article are: (1) to argue for and select definitions for each concept and (2) specify all conceptual characteristics (including translation into modelling restrictions), re-evaluating and going beyond findings in the state of the art. For the first objective, mainly because the validity of interpretation of a term is also a matter of consensus, we argue the selection of definitions present in the 2011 UNEP-SETAC report. ALCA attributes a share of the potential environmental impact of the world to a product life cycle, while CLCA assesses the environmental consequences of a decision (e.g., increase of product demand). Regarding the second objective, the product system in ALCA constitutes all processes that are linked by physical, energy flows or services. Because of the requirement of additivity for ALCA, a double-counting check needs to be executed, modelling is restricted (e.g., guaranteed through linearity) and partitioning of multifunctional processes is systematically needed (for evaluation per single product). The latter matters also hold in a similar manner for the impact assessment, which is commonly overlooked. CLCA, is completely consequential and there is no limitation regarding what a modelling framework should entail, with the coverage of co-products through substitution being just one approach and not the only one (e.g., additional consumption is possible). Both ALCA and CLCA can be considered over any time span (past, present & future) and either using a reference environment or different scenarios. Furthermore, both ALCA and CLCA could be specific for average or marginal (small) products or decisions, and further datasets. These findings also hold for life cycle sustainability assessment.

scholarly journals Investigating the Path from Supply Chain Integration to Business Performance: Evidence from a Sub-Saharan African Economy

2016 ◽  
Vol 11 (6) ◽  
pp. 225 ◽  
Author(s):  
Jonathan Annan ◽  
Nathaniel Boso ◽  
Dominic Essuman
Keyword(s):  
Supply Chain ◽  
Life Cycle ◽  
Financial Performance ◽  
Value Creation ◽  
Coming Out ◽  
Product Life Cycle ◽  
Business Performance ◽  
Supply Chain Integration ◽  
Primary Data ◽  
The Impact

Following the growing concerns on the inconsistent findings in previous research and drawing on the social exchange and networking theories, this study re-examined the impact of supply chain integration (SCI) on business performance (i.e. value creation and financial performance). The study argues that the impact of SCI on financial performance is through value creation and is depended upon longevity of product life cycle. Using primary data from 79 firms in Ghana, the study finds that value creation is a short-run consequence of SCI while financial performance is a long-run outcome of SCI. Additionally, results show that the financial performance outcome of SCI is experienced more from integrative efforts than from the value creation outcome. Results further indicate that firms whose products stay relatively shorter on the market are more likely to experience lower positive impact of SCI on value creation, and thus firms’ ability to become proactive, monitor, and collect market information on product performance throughout its life cycle is key for coming out with strategies that will enable them maximize product’s life span so as to experience greater benefits that come with pursuing integration with other channel members.

Eco product development combining eco design and life cycle assessment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ana Jamile Damasceno Barbosa ◽  
Vitor Hugo de Paiva Santos ◽  
Priscilla Cavalcante de Araújo ◽  
Felipe Lucas de Medeiros ◽  
Letícia Yasmin da Silva Otaviano
Keyword(s):  
Life Cycle ◽  
Comparative Analysis ◽  
Environmental Impact ◽  
Product Life Cycle ◽  
Raw Material ◽  
Real Problem ◽  
Cotton Swab ◽  
Content Type ◽  
Original Product ◽  
The Impact

PurposeThe paper aims to propose the development of an eco product to replace the traditional cotton swab that meets the expected needs, besides having a bias based on sustainability and economic viability.Design/methodology/approachThe applied nature article opted for an exploratory and descriptive study, with the objective of seeking a solution to a real problem: to reduce the environmental impact in the disposal of cotton swabs. To test this hypothesis, the exploratory stage evaluated the literature on the principles of eco design and environmental marketing to understand market viability and environmental impacts. The descriptive phase presented a comparative analysis between the original product and the proposed one, in terms of production processes and impacts of the product life cycle. Thus, an alternative product was conceived and validated applying the life cycle analysis (LCA).FindingsThe paper provides a comparative analysis between the eco product and the traditional product in order to validate the hypothesis that the new proposal reduces the environmental impact. It was found that both productive processes have similar impacts; however, the raw material of the proposed eco product demonstrated a significant reduction in the impact caused on the environment, considering cradle to cradle analysis.Originality/valueThis paper conceives an eco product as an alternative to traditional cotton swab, presenting an innovative potential in line with worldwide sustainability trends.

Evolutionary Governance for Mega-Event Projects (Meps): A Case Study of the World Expo 2010 in China

2018 ◽  
Vol 49 (1) ◽  
pp. 57-78 ◽  
Author(s):  
Yongkui Li ◽  
Yujie Lu ◽  
Liang Ma ◽  
Young Hoon Kwak
Keyword(s):  
Life Cycle ◽  
Institutional Economics ◽  
Governance Structure ◽  
Life Cycle Stage ◽  
Reputation Management ◽  
Mega Events ◽  
The World ◽  
World Expo ◽  
Mega Event ◽  
The Impact

A mega-event is an open socioeconomic system characterized by massive budget demands and multiple types of subprojects and their complex interrelationships. Although a mega-event is an opportunity for a country to show its international reputation, management capacity, and societal strength, it demands a long preparation time; an enormous amount of investment; and massive resource mobilization, with far-reaching effects on both the economic and social development of a country. Mega-event projects (MEPs) face remarkable challenges in terms of overrun costs, delayed schedules, and political issues, indicating that the research on such mega-events is still insufficient and that there is a lack of effective theories to support the management and governance of MEPs. Existing studies have also ignored the dynamic evolution and adaptation of governance in a changing environment, particularly in relation to the success of MEPs. To fill this research gap, this study aims to examine the dynamic governance of MEPs on the basis of a new theory—evolutionary governance theory (EGT)—which combines institutional economics, systems theory, and project governance. The study was conducted in three main steps: (1) studying the case of the evolutionary governance of the World Expo 2010 in China during its life cycle stage, including planning, construction, operation, and post-event development; (2) discussing the impact of the hierarchical and cross-functional governance structure of the Expo; and (3) summarizing the theories and best practices of dynamic governance mechanisms for MEPs. The result of the study can deepen understanding of the multi-level governance of mega-events during the life cycle process and can also support the evolution of governance transition over the different stages.

Modeling Competition over Product Life Cycles

2015 ◽  
Vol 32 (04) ◽  
pp. 1550021 ◽  
Author(s):  
Ka Ching Chan ◽  
Terry M. Mills
Keyword(s):  
Life Cycle ◽  
Product Life Cycle ◽  
Life Cycles ◽  
Valuable Insight ◽  
Mobile Telecommunication ◽  
Product Life ◽  
Market Growth ◽  
Product Life Cycles ◽  
Market Shares ◽  
Different Types

This paper presents a mathematical model, linking the classical Markov models for brand switching and models for product life cycles, to forecast competition analysis and market share. This integrated model can be used to forecast market shares of all competitors, and their market shares, including customers retained, customers gained from market growth, and customers gained from competitors over the product life cycle. Such information provides forecasters with valuable insight about their market positions. The model is generic and can be applied to different types of products and services, under different types and patterns of product life cycle curves. A numerical example on a typical mobile telecommunication industry is used to illustrate the application of the proposed approach.

Linking Balanced Scorecard Measures to Size and Market Factors: Impact on Organizational Performance

2000 ◽  
Vol 12 (1) ◽  
pp. 1-17 ◽  
Author(s):  
Zahirul Hoque ◽  
Wendy James
Keyword(s):  
Life Cycle ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
Product Life Cycle ◽  
New Products ◽  
Life Cycle Stage ◽  
Manufacturing Companies ◽  
Organization Size ◽  
Market Position ◽  
Product Life

This paper examines the relationship between organization size, product life-cycle stage, market position, balanced scorecard (BSC) usage and organizational performance. Using financial and nonfinancial measures, the BSC appraises four dimensions of performance: customers, financial (or shareholders), learning and growth, and internal aspects. Based on a survey of 66 Australian manufacturing companies, the paper suggests that larger firms make more use of a BSC. In addition, firms that have a higher proportion of new products have a greater tendency to make use of measures related to new products. A firm's market position has not been found to be associated significantly with greater BSC usage. The paper also suggests that greater BSC usage is associated with improved performance, but this relationship does not depend significantly on organization size, product life cycle, or market position.

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