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Analyse the relationship between the product life cycle and cash flow.
Member rating: No Rating | Words: | Submitted: Tue Nov 25 2003
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Analyse the relationship between the product life cycle and cash flow The 'product life cycle' is split into 5 stages: * Research and development * Introduction * Growth * Maturity/Saturation * Decline The product life cycle is the model that represents a sales pattern for a product over a period of time. It shows the revenue by a product from is introduction to its eventual decline. There are four stages to the product life cycle: Introduction, growth, maturity and decline. Research and development is the first stage of the product life cycle. This is where a firm has a research team look in to possible new ideas and products for a business. This can be very expensive for the firm. No income is made at this stage as there is no revenue coming in to the firm but capital being paid out on resources. The cash flow at this stage is very low. Introduction: This...
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