Analysis of organizational life cycle in DarouPakhsh Pharmaceutical MFG co.

Introduction An approach to analyzing the economic features of organizations is the organizational lifecycle (OLC) model. Determination of the OLC of a firm is the first step in diagnosis an organization s disease and, it can provide appropriate solutions for its treatment. The purpose of this study is to determine and analysis of the OLC of DarouPakhsh Pharmaceutical MFG co. (DPMC) in the market of Iran and the world. In the next step, appropriate strategies for DPMC, are suggested to prevent the aging of the organization (1). Method The financial information about the company is obtained from the financial statements that are issued by DPMC annually. Four variables of sales growth (SG), cost of expenditure (CE), dividend payout ratio (DPR) and the age of the organization, are studied based on Anthony and Ramesh s method (1992). The value of each variable in 6 years (2009-2013) are calculated, each firm-year of the company are then marked with a score (growth stage = 1, maturity stage = 2, decline stage = 3). Combined scores are calculated for the firm and the OLC index is determined. Then the effect of various related factors (dosage form, price, number of employees, education, and age of them) on the obtained index is evaluated and finally, appropriate strategies are suggested to improve the financial performance of DPMC (2). Result and Discussion The results show that in our period of study, DPMC was in the maturity stage except for the year 2009 (decline phase). The factors that we studied in this study had no significant relationship with the OLC index. According to these results, DPMC can set an appropriate implementation, such as lowering the DPR and current cost or increasing fixed assets to improve its financial performance. References 1. Ebadi T. The effect of corporate life cycle on the accounting conservatism. Scinzer Journal of Accounting and Management. 2016;2(1):1-11. 2. Anthony JH, Ramesh K. Association between accounting performance measures and stock prices: A test of the life cycle hypothesis. Journal of Accounting and economics. 1992;15(2-3):203-27

کلیدواژه ها:

pharmaceutical company ، organizational life cycle ، financial performance