Unit 3.1 2025 Maturity Stage of the Business Life Cycle

Mature businesses have captured their target markets and are well established in their markets.

• True

• False

Which stage of the business life cycle occurs directly before maturity?

• Seed

• Start-up

• Growth

• Post-maturity

Which of the following are characteristics of mature businesses?

• Well-known in their markets

• Medium to large in size

• Slowed business growth

• All of the above

Why do mature businesses need to grow?

• To increase profits

• To reduce costs

• To stabilise profits

• Only businesses in the growth stage need to grow

Cutting costs is NOT a good way for mature businesses to remain competitive.

• True

• False

What types of costs can be reduced by improving quality standards?

• Reproducing defective goods

• Dealing with customer complaints

• Dealing with a poor brand reputation

• All of the above

Horizontal growth is when a business expands into...

• current markets

• new markets

• global markets

• domestic markets

Which of the following is NOT a challenge commonly faced during the maturity stage?

• Rapid growth

• Remaining competitive

• New macro environmental factors

• None of the above

What does product development involve?

• Using existing products in existing markets

• Creating new products in existing markets

• Using existing products in new markets

• Creating new products in new markets

Which strategies can businesses use to expand into new markets?

• Market penetration and product development

• Market penetration and diversification

• Market development and diversification

• Market development and product development