industrial life cycle
Post on 26-Jan-2015
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INDUSTRIAL LIFE CYCLE
Prepared by: Muhammad ZubairG.C. University Faisalabad
Banking & Finance
Birth/Infancy
Decline
Maturity
Growth
Industry/business/product life cycle
Birth/Infancy
• It’s the initial stage • Maximum cash outflows• Cash inflows are minimum/zero• Almost the industry/business/product is in
loss at this stage
Growth
• Cash outflows start decreasing• Cash inflows start increasing• Credit repaying ability is minimum/zero
because the co. try to invest more and more in business to compete the market and for the expansion of business.
Maturity
• Cash outflows are minimum• Cash inflows are maximum• To keep away from loss or lower profits
research and development is much necessary.
Decline
• Cash inflows start decreasing• Cash outflows start increasing rapidly• Low research and development or no
innovation• Investment start decreasing
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