The company according to the lifecycle model has gone from successful startup to a state where growth is still observed in some divisions and in others there has not been successful transition from inception to growth. The Northern stores are successful and are not looking to meet their developmental milestone in growth by expanding to international waters (as is the plan of John Stokes). However Southern stores have not even recorded growth. The decision maker here is John Stokes who wants to escalate the commitment that was already given to the expansion.
Despite the fact that the Southern stores are not performing, Stokes does not want to give up on them. Here, the decision maker does not want to accept that his decision was flawed. He does not want to accept the decision of the CEO and does not want to close the store. While this does show consistency in actions, it could be considered foolish given the situation also. Recommendation in this context: Openhium has two choices, either close the unproductive stores after a certain fixed time period and move on to focusing on strategy development with the other successful stores, or it should consider innovation strategies and more in order to develop the non-performers.
Step 2) In the process for change, it is necessary that there be a combination of approaches (Dodge et al, 1994). So while the life cycle theory can be useful to understand the overall change and growth initiative, the other theories can be useful to understand how the specific constructs in the change process can proceed. According to the teleological theory, the purpose of Openhium when it was a startup was to be productive in selling sports and water sports equipment. John Stokes thinks big and hence wants to expand the business both in New Zealand and internationally. He wants to go global and move into Australia as well.
This ambition is the purpose or the end point for the business. John Stokes now views the recommended shutting down of the Southern stores as being a damper on his plans as they will result in decreased expansion. However, this need not be so, according to the teleological theory, this could just be an adaptation for the overall business to be successful. So John Stokes could either accept that closing some business sectors now might not mean his expansion plan has to be dropped. The expansion venture could still be carried out successfully in better locations.