Economy

Question: Using the “Four-Stage Model of Change” Identify Where Citycell falls into.

Introduction

The key factors that affect the ability of a firm to earn an acceptable rate of return on its owners’ investment are known as the economics of a business. The most important of these factors are competition, technology, and customers. These factors continuously put pressure on the market share and profit margin of a company which leads to a changing economics. The impact of changing economics on well-established companies can be better understood and appreciated within the framework of a “Four-Stage Model of Change”. This model is shown in the following figure:

| STAGE I [pic] STAGE II [pic] STAGE III [pic] STAGE IV |

| |

|Cost Plus Cost Management Revenue Management Revenue Plus |

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|Changing economics |

|Competition |

|Technology |

|Customers |

The four stages of change model provide more than just a framework to judge current business events of an organization. The model also emphasizes the importance of...