Study of Organizational Life Cycle and its Impact on Strategy Formulation

Internal and external factors are examined in formulating the organization's strategy to identify opportunities, threats, strengths and weaknesses, and to determine the organization's different goals and strategies at different levels based on them. Organizational lifecycle chart with four general stages including creation - infant - adolescence and senility is one of the best tools that can indicate the current status of the organization by studying the organizational behavior, and contribute to better development of strategies, marketing and financial plans, etc. Disregarding the organizational lifecycle chart by the executives is one of the issues that impede the satisfactory implementation of the related strategy. In this study, we examine the life of the organization and its impact on formulation of the strategy. The research population consists of the banking system of Iran and the statistical sample is the experts of Iranian banking system, and a standard questionnaire was used to collect data. At first, we examined the position of the two organizations and in the comparison of the two organizations, we have tried to express the problems and conditions governing the organizations and deal with the importance of organizational life. Assessment of the life cycle of two Iranian banks and analyzing their position in each of the stages of life cycle and providing practical solutions are important result of the research.