THE GENERAL BUSINESS LIFE CYCLE MODEL: PROBLEMS AND SOLUTION GUIDELINES

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INTRODUCTION

The concept of an organisational life cycle following predictable patterns which is usually characterised by sequential and progressive stages has been identified in the literature as a viable concept (Churchill & Lewis, 1983; Hill, Nancarrow & Wright, 2002:362; Lester, Parnell & Frey, 2002; Poutziouris, Binks & Bruce, 1999: 139). It has also been argued that a valid life cycle model could be of value to those managing growing firms (Beverland & Lockshin, 2001) as well as to those managing firms that have stayed in one stage for a considerable period of time (Scott & Bruce, 1987:45). Organisations vary in size and focus and as a result a distinction has been made in the literature between organisational life cycle models for large business growth (Channon, 1968; Kimberly & Miles, 1980; Miller & Friesen, 1984:1161ñ1183; Quin & Cameron, 1983:33ñ41; Salter, 1970:23ñ27; Wang, 2005), general growth models (Greiner, 1972:37ñ46; Lester, Parnell & Carraher, 2003:341; Lippit & Schmidt, 1967:103ñ112) and life cycle models more specifically for small business growth (Churchill & Lewis, 1983; Dodge & Robbins, 1992; Masurel & Van Montfort, 2006; Scott & Bruce, 1987:45ñ52). A number of authors have also indicated that business owners face different problems as they progress through the life cycle stages of their businesses (Adizes, 1989; Chandler, 1962; Dodge & Robbins, 1992; Kimberly & Miles, 1980; Poutziouris et al., 1999:139).

BACKGROUND AND PROBLEM STATEMENT

There can be no doubt that the Financial Advisory and Intermediary Services Act is one of the most significant pieces of legislation that was ever instituted in the financial services industry (Swanepoel, 2004: preface). The main objective of the Act, which was promulgated in 2002, is to provide the core regulatory vehicle of market conduct, by regulating all the activities of financial advisers when giving financial advice to their clients (Botha et al., 2003:127). The Act is governed by the Financial Services Board (FSB) (Old Mutual, 2005:F74).

Small business strategies

Given that the majority of the problems that are experienced in small businesses are marketing problems and that the number of marketing problems also increases through the stages of the business life cycle, it appears that marketing related solutions are needed for small business success.

THE PURPOSE OF THIS STUDY

The literature investigation revealed that independent financial advisers, in addition to having to comply with the requirements specified by the Act, also have to address various problems in each life cycle stage to survive and grow.

CHAPTER ONE: BACKGROUND AND OVERVIEW OF THE STUDY
1.1 INTRODUCTION
1.2 BACKGROUND AND PROBLEM STATEMENT
1.3 LITERATURE REVIEW
1.3.1 The organisational life cycle concept
1.3.2 Small business problems
1.3.3 Small business strategies
1.4 THE PURPOSE OF THIS STUDY
1.5 RESEARCH OBJECTIVES
1.5.1 Primary research objective
1.5.2 Secondary research objectives
1.6 IMPORTANCE AND VALUE OF THE STUDY
1.7 RESEARCH METHODOLOGY
1.8 CLARIFICATION OF KEY CONCEPTS
1.9 CHAPTER OUTLINE OF THE STUDY
1.10 APPROACH TO LITERATURE SOURCES AND REFERENCE TECHNIQUE
1.11 SUMMARY
CHAPTER TWO: THE GENERAL BUSINESS LIFE CYCLE MODEL: PROBLEMS AND SOLUTION GUIDELINES
2.1 INTRODUCTION
2.2 THE GENERAL BUSINESS LIFE CYCLE
2.2.1 General life cycle stages of a business
2.2.2 The sequential nature of organisational life cycle stages
2.3 BUSINESS OBSTACLES
2.4 SOLUTION GUIDELINES
2.4.1 The financial services environment and required marketing practices
2.4.2 The services marketing triangle
2.5 SUMMARY
CHAPTER THREE: MARKETING MIX STRATEGIES
3.1 INTRODUCTION
3.2 BIRTH STAGE
3.2.1 Product
3.2.2 Price
3.2.3 Place
3.2.4 Promotion
3.2.5 People
3.2.6 Physical evidence
3.2.7 Process
3.3 GROWTH STAGE
3.3.1 Product
3.3.2 Price
3.3.3 Place
3.3.4 Promotion
3.3.5 People
3.3.6 Physical evidence
3.3.7 Process
3.4 MATURITY STAGE
3.4.1 Product
3.4.2 Price
3.4.3 Place
3.4.4 Promotion
3.4.5 People
3.4.6 Physical evidence
3.4.7 Process
3.5 REVIVAL STAGE
3.5.1 Product
3.5.2 Price
3.5.3 Place
3.5.4 Promotion
3.5.5 People
3.5.6 Physical evidence
3.5.7 Process
3.6 SUMMARY
CHAPTER FOUR: BARRIERS TO IMPLEMENTING MARKETING MIX STRATEGIES, COUNTERSTRATEGIES AND RESEARCH PROPOSITIONS
4.1 INTRODUCTION
4.2 CLARIFICATION OF ENVIRONMENTAL FACTORS
4.2.1 External environmental factors
4.2.2 Internal environmental factors
4.3 BARRIERS TO IMPLEMENTING THE PRODUCT STRATEGIES AND STRATEGIES FOR COUNTERING THEM
4.3.1 Product strategy for the birth stage
4.3.2 Product strategy for the growth stage
4.3.3 Product strategy for the maturity stage
4.3.4 Product strategy for the revival stage
4.4 BARRIERS TO IMPLEMENTING THE PRICE STRATEGIES AND STRATEGIES FOR COUNTERING THEM
4.4.1 Price strategy for the birth stage
4.4.2 Price strategy for the growth stage
4.4.3 Price strategy for the maturity stage
4.4.4 Price strategy for the revival stage
4.5 BARRIERS TO IMPLEMENTING THE PLACE STRATEGIES AND STRATEGIES FOR COUNTERING THEM
4.5.1 Place strategy for the birth stage
4.5.2 Place strategy for the growth stage
4.5.3 Place strategy for the maturity stage
4.5.4 Place strategy for the revival stage
4.6 BARRIERS TO IMPLEMENTING THE PROMOTION STRATEGIES AND STRATEGIES FOR COUNTERING THEM
4.6.1 Promotion strategy for the birth stage
4.6.2 Promotion strategy for the growth stage
4.6.3 Promotion strategy for the maturity stage
4.6.4 Promotion strategy for the revival stage
4.7 BARRIERS TO IMPLEMENTING THE PEOPLE STRATEGIES AND STRATEGIES FOR COUNTERING THEM
4.7.1 People strategy for the birth stage
4.7.2 People strategy for the growth stage
4.7.3 People strategy for the maturity stage
4.7.4 People strategy for the revival stage
4.8 BARRIERS TO IMPLEMENTING THE PHYSICAL EVIDENCE STRATEGIES AND STRATEGIES FOR COUNTERING THEM
4.8.1 Physical evidence strategy for the birth stage
4.8.2 Physical evidence strategy for the growth stage
4.8.3 Physical evidence strategy for the maturity stage
4.8.4 Physical evidence strategy for the revival stage
4.9 BARRIERS TO IMPLEMENTING THE PROCESS STRATEGIES AND STRATEGIES FOR COUNTERING THEM
4.9.1 Process strategy for the birth stage
4.9.2 Process strategy for the growth stage
4.9.3 Process strategy for the maturity stage
4.9.4 Process strategy for the revival stage
4.10 SUMMARY OF THE STUDYíS LITERATURE FINDINGS AND RESEARCH PROPOSITIONS
4.11 SUMMARY
CHAPTER FIVE: RESEARCH METHODOLOGY
5.1 INTRODUCTION
5.2 THE RESEARCH DESIGN
5.3 THE DATA COLLECTION METHODS AND FORMS
5.3.1 Questionnaire design
5.3.2 Overview of final quesionnaires
5.4 THE RESEARCH FRAME
5.4.1 Determine the target population
5.4.2 Define the sample frame
5.4.3 Decide on a sample technique
5.4.4 Establish the sample size
5.4.5 Implement the sampling process
5.5 DATA ANALYSIS
5.5.1 Data preparation
5.5.2 Data analysis procedures used
5.6 SUMMARY
CHAPTER SIX: RESEARCH RESULTS AND INTERPRETATION
6.1 INTRODUCTION
6.2 RESPONSE RATE
6.3 EXAMINATION OF TELEPHONE INTERVIEW DATA
6.3.1 Commission growth
6.3.2 Respondent qualification
6.3.3 Business age
6.3.4 Employee growth
6.3.5 Number of organisational levels, specialised functions and types of employees
6.3.6 Motivational techniques employed
6.3.7 Willingness to participate in further interviews
CHAPTER SEVEN: CONCLUSIONS, IMPLICATIONS AND RECOMMENDATIONS
7.1 INTRODUCTION
7.2 MAIN CONCLUSIONS, IMPLICATIONS AND RECOMMENDA TIONS OF THIS STUDY
7.2.1 The organisational life cycle stages of independent financial advisers
7.2.2 The business problems that can threaten the businesses of independent financial advisers
7.2.3 Solutions to business problems, marketing mix strategies
for sales growth, barriers to implementation and counter strategies
7.3 A MARKETING MIX FRAMEWORK FOR BUSINESS SURVIVAL AND SALES GROWTH
7.4 LIMITATIONS OF THIS STUDY
7.4.1 Limitations based on the literature review
7.4.2 Limitations of the empirical phase of the study
7.5 RECOMMENDATIONS FOR FUTURE RESEARCH
7.6 CONCLUDING REMARKS