BUS435 Business Management Report: Stages of Organizations

This report examines the initial stages of business development, outlining the developmental tasks essential for organizational effectiveness. It analyzes the first three stages of organizational development, including identifying market needs, developing products or services, and securing resources. The report differentiates between entrepreneurship and professionally managed organizations, highlighting differences in planning, leadership, and organizational structure. It further explores the success factors, challenges, and transition strategies from entrepreneurship to professional management, emphasizing the importance of coordination and strategic planning for sustained growth. The analysis incorporates examples like Facebook and Go Pro to illustrate key concepts.

Running head: BUSINESS MANAGEMENT
Business Management
Name of the Student
Name of the University
Author Notes:

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Table of Contents
Introduction......................................................................................................................................2
Developmental tasks........................................................................................................................2
Stage I and Stage II organisations...................................................................................................3
Difference between entrepreneurship and professionally managed organisation...........................4
Stage III success factors, challenges and transition from entrepreneurship to professionally
managed organisation......................................................................................................................4
REFERENCES................................................................................................................................5
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Introduction
Regardless of the nature of operations of an organisation, there are major decisions that
they have to make in the initial days of operations in order to ensure that they gain success in the
future. One of the main challenges in developing the idea that will be necessary to carry out
operations in a favourable nature (Loorbach & Wijsman, 2013). The aim of the paper is to
identify the task that organisation need to incorporate in order to gain effectiveness in operations
along with analysis of first three stages of organisational development.
Developmental tasks
There are certain tasks that needs to be catered to in order to gain effectiveness in
operations especially when an organisation is in its early days. Hence, the activities that needs to
be catered to in order to maximise the efficiency of organisation in its initial days of operations
(Ejere, & Ugochukwu, 2013). The activities are as follows;
i. Definition of the market is the first task that must be incorporated by an organisation.
Furthermore, identification of the target group of customers is necessary during the first
stage of operations.
ii. The second stage is characterised by the development of concept products or services.
The other stages would not be viable without the justification of this stage.
iii. The thirds stage involves gaining resources that helps sustaining the future needs of the
organisation that is the company incorporates skilful resource management.
iv. Recruitment is the fourth task that the organisation needs to cater to.

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v. The fifth task is creation of organisational systems. It is characterised by planning,
development of the organisational culture followed by development of the structure that
will be necessary for sustaining the long term needs of the organisation.
vi. Monitoring the business progress in the initial days forms the initial stage of the
developmental task of organisations.
Stage I and Stage II organisations
The first two stages of the organisation formulate the initial stages of the development of
the organisation. The key to successful development in Stage I of an organisation involve three
phases (Okada et al., 2013). The first phase is identification of market needs or needs for the
product of services. This is followed by the development of a product or services that will be
offered to the consumers. The last phase that determines the key is establishment of a proper
workforce who will be viable for the achievement of the organisation goals. The best suited
example for this case is Facebook.
The stage II of the development of an organisation is characterised by the rapid growth
and development of an organisation (Veselovsky et al., 2015). It is a stage when the organisation
has already met the requirements of stage I. There are two phases of that determines the success
of this stage. They are the ability to obtain resources for the operations of the organisation
followed by the creation of organisational systems as mentioned before. This stage is
characterised by rapid growth of the organisation and they have to cater to the growth of the
organisation in terms of finance, technology, tangible and intangible assets. Furthermore the
latter can has to be integrated into the operational activities of the organisation. A suitable
example for this stage of organisational development was taken up by Go Pro.

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Difference between entrepreneurship and professionally managed
organisation
The main area of difference between entrepreneurship and professionally managed
organisation lies in the results of the key areas (Marić, 2013). The professionally managed
organisations, the planning phase is inevitable while in the case of entrepreneurship, the plan is
in the tertiary memory of the entrepreneur. Profits are planned in the case of the former while it
is absent in the case of the latter. There exists hierarchy and structures in professionally managed
organisations, while the latter is characterised by the participative leadership and a somewhat
informal culture in the firm. This difference is concerned with the leadership culture that exists in
the organisation.
Stage III success factors, challenges and transition from entrepreneurship to
professionally managed organisation
Stage III of organisational development is characterised by required changes in planning,
the cloture of the organisation along with the goals and objectives of the organisation (Chang,
Walters & Wills, 2013). The challenge that the business is faced with in this stage regarding the
positioning that the organisation or the firms is aiming to make. In order to effectively stage the
transition from entrepreneurship to professionally managed organisations, a great deal of
coordination is required in the operational activities of each of the departments of the firms that
are managed by entrepreneurs.

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REFERENCES
Chang, V., Walters, R. J., & Wills, G. (2013). The development that leads to the Cloud
Computing Business Framework. International Journal of Information
Management, 33(3), 524-538.
Ejere, E. I., & Ugochukwu, D. A. (2013). Impact of transactional and transformational leadership
styles on organisational performance: Empirical evidence from Nigeria. The Journal of
Commerce, 5(1), 30.
Loorbach, D., & Wijsman, K. (2013). Business transition management: exploring a new role for
business in sustainability transitions. Journal of cleaner production, 45, 20-28.
Marić, I. (2013). Stakeholder analisys of higher education institutions. Interdisciplinary
Description of Complex Systems: INDECS, 11(2), 217-226.
Okada, A., Noguera, I., Alexieva, L., Rozeva, A., Kocdar, S., Brouns, F., ... & Guerrero‐Roldán,
A. E. (2019). Pedagogical approaches for e‐assessment with authentication and
authorship verification in Higher Education. British Journal of Educational Technology.
Veselovsky, M. Y., Gnezdova, J. V., Romanova, J. A., Kirova, I. V., & Idilov, I. I. (2015). The
strategy of a region development under the conditions of new actual
economic. Mediterranean Journal of Social Sciences, 6(5), 310.