Special Issue INTERNATIONAL JOURNAL OF HUMANITIES AND March 2016 CULTURAL STUDIES ISSN 2356-5926

The analysis of Kian Isatis Pars Company’s position in the life cycle

Majid Golestani Kermani Department of Management, Yazd Branch, Islamic Azad University, Yazd, Iran

Shahnaz Nayebzadeh * Department of Management, Yazd Branch, Islamic Azad University, Yazd, Iran *Corresponding Author: [email protected]

Abolfazl Davoudi Roknabadi Department of Textile Engineering, Yazd Branch, Islamic Azad University, Yazd, Iran

Abstract

The method of an organization life cycle determination is one of the applied models in relation to the organizational situation analysis. Life cycle stages are provided and crucial factors affecting a business unit performance. The present study aims to investigate Kian Isatis Pars Company’s position in its life cycle. The research method is applied in terms of purpose, descriptive from the practice perspective and a case study in terms of research type. Data were collected via a valid and reliable questionnaire. The population includes 90 managers and staff of Yazd Kian Isatis. 10 senior and middle managers of the company were selected as the sample. Descriptive analysis of the life cycle questionnaire answers (39 questions), were distributed among 10 managers, shows that Kian Isatis Pars Company is in the "evolution" stage of its life cycle. It also suggested that the system and organizational structure have been stabilized and there is a balance between flexibility and controllability; leadership and management has a prominent and highlighted role; as well as, the equation of responsibility and authority is established; human resources in this situation need to improve their expertise and knowledge; risk-taking and innovation are still acceptable; liquidity and earnings management are predictable and controllable, though, the company still needs financial stability and marketing emphasizes on an effective responsiveness capability to the customers' need.

Keywords: life cycle, Isaac Adizes, life cycle curve, leadership, management.

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1. Introduction

Today, producers and businesses are facing new challenges for the presence in the global economy. Due to the existence of large number of suppliers and their intense competition and increased consumer expectations for offering better quality and faster service, there is a lot of pressure on producers. These factors may have not previously existed. In these circumstances, corporations realized that they are not able to deal with all issues and on the other hand, besides considering the affairs and internal sources to manage and to monitor resources and related bodies outside the company are required. This is because of achieving competitive advantages to gain a greater share of the market (Deloy Esfahani et al., 2014). In fact, companies tend to increase customer satisfaction and to improve their business efficiency in order to achieve more competitive capability (Tan and Kannan, 2005).

Given the current situation, to deal with problems and activities along with competitors institutions and companies have to adopt long-term policies and any company should develop a comprehensive program according to the perspective, mission, goals and conditions and indoor facilities as well as opportunities and threats of the external environment (Nazari, 2011). To develop products with higher performance companies are increasingly under clients' pressure. In this regard, successful companies using the resources, capabilities and core competencies in a strategic process attempt to create a unique and sustainable competitive position in the market (Jafarzadeh and Mokhtarzadeh, 2007, 96).

One of the applied models in relation to the organizational situation analysis is the organization's determination method of the life cycle. According to this model, each product / service, industry or business has a cycle life. This means that it is born and introduced in a period of time, grows up, matures, and then reaches to the saturation stage and eventually becomes aged and declines. Life-cycle theory is applied in cases such as products, markets, services, technology and industry (Alizadeh et al., 2008, 2). Previous researchers have stated that life cycle stages are important factor affecting the performance of business units (Rezai and Samany, 2014, 89). Many researches on the life cycle of the organization / company have been done; though, companies of the electricity industry have less monitored their life course. Therefore, the present research aims to answer the question:At what stage of life cycle is Kian Isatis Pars Company?

2. Review of the literature 2.1 Companies' life cycle

All living things, including plants, animals and humans follow the life curve or life cycle. These creatures are born, grow up, become old and eventually die. These living systems at any stage of their life cycle have certain behavior patterns in order to overcome the stage problems and difficulties associated with transition from one stage to another. Life cycle theory assumes that companies and economic firms like all organisms that are born, grow up and die have a life curve or cycle (Adizes, 2010).

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Implementation of biological life cycle model in economics and in a practical field is a relatively new phenomenon. Fueglistaller and Halter(2005) refer to Grabowski and Mueller(1975) who introduced the life-cycle theory in the 1970s. According to Fueglistaller and Halter, Korallus (1988) as well as Pumpin and Prange (1991), Rosenbauer (1995) also Kemmetmüller and Schmidt (1995) actively contributed in this field. Common tasks of St. Gallen- Blakher (2004) management complete model, Pumpin and Prange (1991) Fueglistaller and Halter (2005) have played a very important role in organizational life cycle development.

Dickinson (2006) has introduced a five-stage life cycle in the following order: The introduction at which innovation is created is the first stage. At this stage companies are trying to create awareness, provide information and increase share of the market. The first entries will enjoy the market temporary ownership (Dickinson, 2006,128). Jovanovic (1982) on the subject says: to enter into the market and begins operations companies pay an unrecyclable cost. They receive vocal information on the actual costs and performance levels. Dividend ratio of these companies is usually zero or at most ten percent. Sometimes, the return on investment or adjusted investment is negligible compared to the financing weighted rate (Adizes., 1989,361). Growth stage is the second stage at which the firm's size is greater than firms at intuition stage and sales and earnings growth is higher than the emerging stage. Companies have optimistic expectations about their abilities (such as cost structure and competitive advantage) and at this point make lots investment which are not evident in financial assets and include the organizational capital (such as investment in distributed systems and production infrastructure) as well as technological capabilities (Dickinson, 2006,128). In this range of motions, the dividend ratio usually fluctuates between 10 and 50 percent (Adizes, 1989).

Maturity is the third stage at which companies experience a stable and balanced sale and their primary assets are amortized. It should be cited that the speed of equipment disability depends on technological and industrial changes. In these circumstances, the company's inability to cope with the changing competitive environment affects the life cycle progression (Dickinson, 2006, 128). Moreover, the size of the company's assets is greater than growing companies and the dividend ratio usually fluctuates between 50 to 100 percent (Adizes, 1989).

Stagnation is the fourth stage at which competitive advantage analysis determines that the maturity stage leads to an inevitable stagnation; to the extent that companies can resume their operations through restructuring (such as acquisition, merger and integration or join to other markets). Corporates try to cash their unproductive assets; in other words to change these resources to new projects that create positive returns (Dickinson, 2006). At this stage, the cost of financing from external sources is high in such a way that in most cases the investment return or the return on the adjusted investment is less than the rate of financing (Adizes, 1989).

Bankruptcy is the last stage. Any company can enter into to the degeneration (bankruptcy) stage from any of the previous steps. For example, Jovanovic (1982), via an analytic model showed that due to the long period of the necessary training for stabilizing the competence of the company, the degree of endangerment (probability of bankruptcy) is high in early stages of their

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lifecycle. In addition, if at the previous stages the company's competitive adoption or innovation efforts fail it will enter into bankruptcy or degeneration (Dickinson, 2006).

According to Gordon and Walter (2003), based on the life cycle companies are divided into three categories of growing, mature and declining. By accumulating the profit, growing business units increase the share price. Mature business units have not an appropriate opportunity; their dividend policy does not impact on the price; although their fixed dividend ratio decreases the risk. Declining economic entities have to split the profit so expose to a very high risk (Asta and Qeytas, 2012).

Like living organisms, growth and aging represent business units based on the controllability and flexibility. In young (growth) period organizations are very flexible, but in most cases are uncontrollable. By increasing the organization‟s life, relationships change: increased control and decreased flexibility. Finally, in aging (decline period) controllability will also decrease. The entity's controllability and flexibility shows that it involves both young and aging period benefits. The situation is known under the evolution stage (puberty). Figure 1 explains the relationship between the controllability and flexibility of business units (Adizes, 1989).

Figure1. The relationship between controllability and flexibility of a business unit

In economics and management, life cycle of companies and institutions can be divided into stages. Models with some stages have been presented for life cycle in literature of these sciences. Within the framework of these models, institutions and companies follow a certain policy according to the associated economic life stage. These policies are reflected in corporate accounting information (Ghorbani, 2006). Companies have a life cycle and through passing a range of steps as well as specific and successive changes evolves over time (Rezai and Samany,

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2014).The previous researchers have described four basic steps to explain the life cycle of a company as follows: - Start-up or Emerging Stage -Grow-up or Growth Stage -Maturity or Stability Stage -Decline or Stagnation Stage

2.1.1Start-up stage

At the emerging stage the amount of assets (firm size) is usually at a low level, cash flows from operating activities and profitability are low and companies need a high liquidity in order to finance and achieve growth opportunities. The company's dividend payout ratio is usually at most 10% and the internal rate of return is negligible compared to the established financing rate; in other words, the relationship is as (IRR≤ K) (Adizes, 2010).

2.1.2 Growth stage

At the growth stage the firm's size is greater than the emerging stage; moreover, the sale and earnings rate is higher than the emerging stage. Financial resources are mostly invested in productive assets and the company's liquidity indices are high. Dividend ratio in this spectrum of corporates usually fluctuates between 10 to 50 percent. In most cases internal return rate is higher than the cost of financing; in other words the relationship (IRR>K) is established (Adizes, 2010).

At this stage entities incur a higher business risk because of facing with growing sales and unpredictable profits due to the uncertainty in the level of product demand. As the recent researches show, even though the demand for goods is rising, it is possible that the entity's products are not yet accepted by the general consumers but business units may achieve some income during the growth stage (Asta and Qeytasi, 2012).

During the growth stage, the entity has overcome the fear of a quick exit from the market and achieved a degree of success by surviving in the market. At this stage, an entity actively attempts to search and implement development projects so needs more capital to achieve long-term competitive advantages and new products (Asta and Qeytas, 2012).Companies at the growth stage need additional financing; in contrast, they have a less borrowing capacity compared to the mature companies. Therefore, mature companies develop their borrowing capacity. Due to a greater exposure to information asymmetry, companies at the growth phase experience a cost gap and higher costs of an inappropriate selection, hence, according to the hierarchical theory, corporates at growth stage follow this theory more accurate than corporates at the maturity stage (Rezai and Samany, 2014).

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2.1.3 Maturity stage

During the maturity stage, companies experience a stable and balanced sale and the need for cash in most cases is met through internal resources. Assets size of these companies in proportion is higher than the size of companies at the growth stage which fluctuate between 50 and 100 percent. Due to the abundance of cash and reducing reliance on the policy of financing from external resources, the company's internal rate of return is often equal to or more than the rate of financing. In other words, the relationship (IRR ≥ K) is established (Adizes, 2010).

The business risk of business units at maturity is usually less than other stages of the life cycle. Since the sale of business units is largely stable, a mature business will have more operating cash flow (Asta and Qeytas, 2012). Companies at maturity are older, larger and more profitable than corporates at the growth stage (Rezai and Samany, 2014).

Nissim and Penman (2001) suggest that during the maturity stage, the initial investment capacity to meet the market high demands is sufficient and the business unit will create more cash inflow. In this stage, active business entities have less technological changes than in other phases of the life cycle (Asta and Qeytas, 2012). Anthony and Ramesh (1992) argue that at the stage of maturity, along with reducing the sales growth, marketing costs and capital expenditures will be gradually decreased, too; thus companies will be able to pay more dividends (Rezai and Samany, 2014, 99). At this stage, in most cases the needed cash is founded through internal resources (Rezai and Samany, 2014).

2.1.4 Decline stage

When the entity enters into decline the business risk increases. At this stage, the entity usually is facing sales decrease, technology replacement or even product obsolescence. Furthermore, the revenues of the entity are minimum or possibly negative and the return on investment is often low due to limited opportunities for investment as well as the overall market decline and operation loss is low. Demand for the organization products and services is decreased and inefficient firms are forced to exit the industry. In addition, firms face liquidity problems. Due to changes in the environment and innovation of new products, business units at the decline stage should tolerate more pressure than the business units at the other stages of the life cycle (Asta and Qeytas, 2012). Growth opportunities are generally very poor during this stage. Indicators of profitability, liquidity and obligations have a downward trend and the company is inscribed in a very difficult competitive conditions; moreover, the cost of financing from external sources is high so that in most cases the internal return rate is less than the financing rate, in other words the relationship (IRR

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stages as growth, maturity, and inversion. These companies‟ dividends are different since the organization goes through various stages of the life cycle and its stages are different in management structures, formal structures, control structures, transactions documentation and procedural obstacles (Morris et al, 2002).

2.2 Company life cycle stage in Adizes theory

According to Adizes theory, organizational growth stages include the following courses: (Shafii, 2012, 26-25) and (Elahi, 2004)

Figure2. Organizational life cycle curve (Shafii, 2012; Elahi, 2004)

1. Creation: The first period of an organization life is called creation. This period includes pre- birth and birth stages. The organization is not created yet and the emphasis is on those ideas and facilities that are probably realized in the future. So that the new organization would require a new idea or innovation or new requirement for which making a new organization is required. Non-self-interested perspective of the organization's founders is of great importance at this stage. This perspective is combined with commitment elements and the organization's basis is built.

2. Childhood: The created organization enters into the childhood stage. Childhood real time begins from the moment that a part of partners or founders' commitments are implemented. Childhood stage is the period of management in crisis. Characteristics of this period include: a very intimate environment, limited and not very interesting hierarchy, the lack of a system to evaluate individuals, no division of responsibilities based on abilities and abundant extremism or negligence inside the organization.

3. The rapid growth: This stage is when the organization has overcome its financial problems and succeeded to provide reliable economic infrastructures. In this period the ideas change into actions and the liquidity and the organization's activity volume have been balanced.

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4. Maturity period: The most important stage in the life cycle of an organization is maturity. This period is like a rebirth for the organization and is more difficult than the creation phase. This period is accidental because of the following reasons: 1. Devolution of the founders and former leaders of the organization to new individuals; 2. Change or modification of the organization's primary goals To slip in each of these two issues causes a fundamental change in the organization's growth and sometimes may convert an idealistic organization into an unrestrained one. All precision and delicacy of founders and leaders of the organization should be focused on these changes in order that the organization's development trend doesn‟t lead to the other side. 5. Evolution period: Evolution is a balanced stage for an organization at the best state. It is a state between the maximum controllability and maximum flexibility. In fact, this is the organization‟s flowering and productive period. 6. Stability period: From this step onwards, the period of decline begins. In this period, the organization is powerful but it gradually loses the flexibility and slowly begins to descend. 7. Nobility period: This is one of the descent stages of the organization towards the decline. High luxury and low innovation are two obvious characteristics of this period. The organization is rich in terms of liquidity and earnings are expended both for profitability and the system control. Innovation is very low within the organization and affaires are done traditionally with an emphasis on past achievements. 8. Initial bureaucracy period: In this period as another descending stage of the organization towards dismantling, the organization's individuals' question is changed: They ask "Who is to blame?" rather than to ask "what should be done?” To do an effective work in the organization requires bothersome methods and all activities are inconclusive and without an export support. 9. Bureaucracy period: In this period, the organization is cluttered and chaotic with numerous systems and poor performance; as well as, it can‟t provide sufficient resources for itself. Paperwork, lots of restrictive regulations and political bond games have destroyed the innovation and creativity. 10. End period: Organization's death. After the controversy and arguments, eventually the organization will be buried in the history cemetery and nothing will be left for survivors but a name and perhaps less of it. Finally, the organization will die if it is unable to meet the financial needs and there is no political justification for its survival.

3. Methodology

The research type The present study is an applied research since its expected results can be used to improve the process of Kian Isatis Pars Company‟s managers' insight. In addition, this is a "descriptive" research and due to the examination of Kian Isatis Pars Company's life cycle, it can be considered as a case study.

Population and sample

In line with industrial policies of Kavir Industrial Group, Kian Isatis Pars was established in 2012. The company's main activities in this area include: construction of super- distribution and

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transmission lines, construction of super- distribution and transmission posts, testing and setting up super- distribution and transmission posts, reparation and maintenance of posts as well as super- distribution and transmission lines, the annual exploitation of super- distribution and transmission posts and lines and equipment supply. Kian Isatis Pars Company‟s 90 managers and personnel were formed the present research population. 10 Senior and middle managers responded to the questionnaire in life cycle analysis section.

Data collection and analysis

Data collection methods are different and varied in research methodology. The field method was applied in this research. For this, a researcher made questionnaire was used to collect data. Indices and the implications of this questionnaire were derived from the research literature particularly from the Azides, the father of life cycle analysis, website (www.isatis.adizes.com). The questionnaire practicality and tangibility for Kian Isatis Pars Company were confirmed after several meetings with senior and middle management team.

Cronbach's alpha was used to determine the research tools reliability. This method is utilized for calculating the internal consistency of measurement tools that measure different features. Using SPSS statistical software, reliability coefficient was calculated for this tool via Cronbach's alpha. Cronbach's alpha coefficient is calculated as follows:

n s2   ( ) (1  i ) n 1 s2 t Where: n = number of test questions s = variance of question i S = variance of the total test A questionnaire will be reliable if Cronbach's alpha value is greater than 0.7 and as this value becomes closer to 1, the questionnaire reliability gets higher. The alpha value for the entire life cycle analysis questionnaire is 0.7012 that is greater than 0.7, so the questionnaire is stable. The research variables including answers to the questionnaire questions are presented in table 1 in terms of the life cycle analysis with 6 indices.

Table1. The variables (factors related to life cycle analysis) and the calculation method

Examined Indices Questionnaire questions Measurement Measurement Organizational system and 2, 5, 15, 21, 24, 36, 38, 39 Spectrum scale Leadershipstructureand management 7, 14, 19, 20, 28, 29, 31, 34 Human resources 4, 8, 12, 13, 18, 30, 33 Likert Ranking Risk-takingand innovation 1, 6, 22, 25, 32 spectrum

Liquidityand earnings 3, 9, 11, 16, 17, 23, 26, 35 factors related to to related factors life cycle analysis cycle life Salemanagementmanagement and 10, 27, 37 marketing

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4. Findings

Descriptive analysis is used in this part of the research. This research type requires the researcher to categorize and summarize the collected data using descriptive statistical indexes. In other words, in a descriptive analysis the researcher at first collects the data and summarizes it through the preparation of a frequency distribution table, then display the summary via a diagram and finally analyze it using descriptive statistics indices. According to mentioned explanation about the descriptive analysis the below items are done in this part of the research: -To survey the initial results of the life cycle questionnaire based on each question separately -To conclude the results of questions related to each index -To conclude the results of the company's life cycle analysis

4.1 The initial results of the life cycle questionnaire based on each question separately

Table2. The life cycle questionnaire answers

Frequency Question answers frequency percent In Kian Isatis Pars Company, long-term personal yes 8 %80 1 success comes with risk-taking rather than risk- No 2 %20 avoiding. More risk-taking leads to more success. . Almost every action is allowed in the company unless yes 6 %60 2 expressly prohibited. No 4 %40 According to the "Kian Isatis" budget figures and yes 7 %70 profitability goals, to achieve purposes is difficult but 3 in general, the cost and benefit figures have to be No 3 %30 manipulated. In Kian Isatis Company, there is a balance between yes 9 %90 attention to the performance (what tasks do individuals 4 take and why) and process (how tasks should be done No 1 %10 and who should do them). In Kian Isatis Company, depending on the situation, yes 8 %80 staff managers (like managers of finance, accounting 5 or legal departments) or line managers (like marketing, No 2 %20 sales or product development managers) take the main decision-making power. . Kian Isatis focuses on possible future opportunities yes 6 %60 6 than past successes. No 4 %40 If the founder or CEO left the company it wouldn't yes 2 %20 7 probably survive. No 8 %80 We usually do not have enough time and opportunities yes 1 %10 8 for meetings. No 9 %90

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Most of us do not have enough cash. yes 7 %70 9 No 3 %30 Most products or services are supplied in the market yes 7 %70 10 before being ready. No 3 %30 We have little control over the current costs of the yes 5 %50 11 company No 5 %50 Usually employees are confused with many tasks yes 4 %40 12 without clear priorities. No 6 %60 At the same time, (employees) have to work on yes 8 %80 13 multitasking jobs (we almost are ready to perform No 2 %20 different tasks at any raised occasion). It seems that the founder or CEO are quite busy and yes 5 %50 14 involved in things that are not directly associated with No 5 %50 our company. In our company, it is not clearly specified that who is yes 2 %20 15 responsible for what. No 8 %80 Our company is profitable, but we're losing the market yes 7 %70 16 share. No 3 %30 yes 7 %70 17 The company‟s revenue is stable or falling. No 3 %30 In our company, the mentality of "veteran or an yes 5 %50 18 experienced employee versus a novice employee" No 5 %50 exists. The company's senior managers are not in line with yes 4 %40 19 long-term orientation and goals. No 6 %60 It seems that the company's problem is to find yes 1 %10 20 qualified people to manage different task parts. No 9 %90 The company lacks a set of systems and policies that yes 3 %30 21 work well. No 7 %70 Most employees are happy with the situation: they are yes 1 %10 22 not willing to make changes. No 9 %90 The company has a good record in achieving financial yes 5 %50 23 goals or even exceeding the financial goals. No 5 %50 The company has adjusted procedures and methods to yes 5 %50 24 conduct activities that are important for staff. No 5 %50 The culture of "escape from change" exists in our yes 4 %40 25 company. No 6 %60 Our company is not likely to survive without the yes 5 %50 26 support of the mother organization (or the government No 5 %50 subsidies) If a customer complaint or a problem happens to him yes 8 %80 27 some of the key individuals enter into action. No 2 %20

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Political gamesmanship governs on the company's yes 2 %20 28 decision makings. No 8 %80 The company‟s managers often spend their time on yes 2 %20 29 "fighting" with each other. No 8 %80 In most cases, employees are hidden behind this yes 2 %20 30 sentence: "Because this is our company's policy". No 8 %80 There is a large shift in senior management and CEO yes 0 %0 31 positions. No 10 %100 It seems that there is no willingness to accept new yes 1 %10 32 ideas and creative ideas. No 9 %90 The company's senior staff has too much advantages/ yes 2 %20 33 welfare facilities. No 8 %80 The company's founder or CEO rejects or changes yes 2 %20 34 most of the important decisions made by others. No 8 %80 Currently, Kian Isatis mostly attempts to achieve yes 8 %80 sufficient cash flows to finance the company's 35 activities and to reach a stable financial position in No 2 %20 order to increase sales and achieve greater market share The company's important decisions are made by the yes 5 %50 founder / CEO / chairman of the board; although, there 36 are other qualified and capable individuals to make No 5 %50 decisions. The company's main focus is on building and yes 4 %40 strengthening the company's internal infrastructure to 37 support existing and future products and services in No 6 %60 order to enter into new markets or add new products. Kian Isatis has few laws and policies to control the yes 7 %70 38 personnel behavior. No 3 %30 Currently, Kian Isatis has an organizational chart and yes 2 %20 39 job descriptions, but it doesn't reflect how things No 8 %80 should be actually done.

4.2 To conclude the results of questions related to each index

After computing the majority and minority of responses given to questions and registering the answers on Azides' life cycle specific website, the results of answers examination are presented in terms of the below 6 indices:

Table3. Life cycle questionnaire answers according to the life cycle indices Examined indices Life cycle questionnaire Answers examination results Organizational 2, 5, 15,questions 21, 24, 36, 38, 39 Registered and balance between flexibility systemLeadership and structure and 7, 14, 19, 20, 28, 29, 31, 34 A clear andand prominent controllability role as well as the management equation of responsibility and authority http://www.ijhcs.com/index.php/ijhcs/index Page 570

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Human recourses 4, 8, 12, 13, 18, 30, 33 Need to improve the expertise, skills and Risk-taking and 1, 6, 22, 25, 32 knowledgeacceptable Liquidityinnovation and 3, 9, 11, 16, 17, 23, 26, 35 Predictable return and control, but still the earningsSales management management 10, 27, 37 Effectiveneed responsiveness for financial stability capability to and marketing customer requirements 4.3 Conclusion of the company’s life cycle analysis results

In this stage the website output for presentation of Kian Isatis Pars Company‟s position in the life cycle is as follows:

Figure2. Kian Isatis Pars Company’s position in life cycle

Currently, Kian Isatis Pars Company is in the evolution stage of the life cycle.

5. Discussion and conclusion

The descriptive analysis of the questionnaire including 39 questions distributed among 10 senior and middle managers of the company show that the organizational system and structure have been registered in Kian Isatis Pars Company and there is a balance between flexibility and controllability; leadership and management play a clear and significant role as well as there is an equation between responsibility and authority; human resources' expertise, skills and knowledge should be improved; risk-taking and innovation is still acceptable; the liquidity and earnings management promise a predictable return along with control but the company still needs a financial stability; sales management and marketing emphasize on effective responsiveness capability to customer requirements.

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The analysis results indicate that Kian Isatis Pars Company is in the evolution stage of the life cycle. Evolution is the optimal point of an organization life curve at which there is a complete balance between controllability and flexibility of the organization; in fact, it is the organization's flourishing and developing period. Existence of specialized systems and institutional perspective as well as a creative thinking is some characteristics of this period. At this stage, the organization will attempt to remain in the same period. The organization can increase its performance capability in a predictable way and is able to satisfy the customers' needs continually. If the organization does not boost its vital energy and the entrepreneurship leaves the organization, it will enter into the next stage that is stability. An evolved organization's typical features include: A) Moral thinking and human values are institutionalized. B) Compliance with positive environmental changes occurs easily. C) Standing against abusive raids can be stimulated with all dimensions and power. D) The organization can increase its capability in a predictable way. E) The organization has an efficient structure. F) Unexpected problems are minimized. G) All members of the organization are relatively satisfied.

5.1 Suggestions based on the research results

According to the research data analysis, currently, the company is in the " evolution" stage of the life cycle which is considered as an ideal stage for any organization; therefore, to pay attention to the customers' needs and demands and welcoming the risk to value innovation, creativity and entrepreneurship are suggested to the company's managers in order to preserve the current position. Furthermore, sustaining the teamwork culture and effective leadership in the organization will be useful and proper financial management can help the preservation of cash flows. All effective strategies on recognition of the company's competitive environment and its services position in the life cycle must be established. Information and knowledge about the environment enable the company to recognize how and when it can compete effectively, to offer its products and services and to supply the required resources. In order to avoid pitfalls at any stage of the life cycle managers should consider circles common interface.

5.2 Suggestions for future researchers

To investigate the relationship between the current position of Kian Isatis Pars Company in its life cycle and effectiveness of strategic programs in the areas of production / operations, finance / accounting, human resources and marketing / sales is suggested to the future researchers. In addition, the effects of professional capabilities of staff with their job satisfaction and organizational commitment on the company's position in life stages can be suitable subjects. To study the organizational culture appropriateness with the preservation of the current favorable position in the life cycle is another topic that can be offered to future researchers.

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