All companies pass through a life cycle as they try to establish themselves in the market. These include the birth phase (innovation stage), the growth phase (geographic expansion), maturity phase (expansion of the product line), the decline phase and the revival phase (Venkatachalam & Sellappan, 2011). The company’s structure is most likely to begin driving its strategy in the growth phase of its cycle.

The company is most likely to begin its driving its strategy in the growth phase because of a variety of reasons. For starters, it is the period in which the company is establishing itself in the market and hence tends to face challenges such as increased competition. The increasing competition comes as a result of the increased demand for their products (Venkatachalam & Sellappan, 2011).  New manufacturing companies become attracted to the new market and start encroaching. In this regard, the business should thus derive strategies to enable it cope with the new changes and maintain as well as attract new markets (Venkatachalam & Sellappan, 2011). The business would tend to consider different marketing strategies to increase its market share and its growth as well.

During the growth phase of the company’s life cycle, the leaders of the company incorporate a functionally-based structure where the business aligns its structure with the customer’s needs in mind (Venkatachalam & Sellappan, 2011). In this regard, there is authority delegation to middle managers or other lower managers and the organisation becomes more departmentalized (Venkatachalam & Sellappan, 2011). The departments include production, human resources, financial, sales and marketing. Regardless of whether the departments existed before or have just been formulated with the entry into the growth phase, their functions become more formalised (Venkatachalam & Sellappan, 2011). The reason for this form of alignment is the realisation that the consumer is the major stakeholder in the business at that time. The more the consumer is satisfied, the better the organisation will perform.