Stages Of Business Life Cycle Research Articles

Exploring value relevance of EVA over different stages of business lifecycle

Purpose This study aims to determine whether the financial ecosystem is reliable for evaluating a company’s financial performance at various lifecycle stages or whether value-based performance metrics like Economic Value Added (EVA) are the most comprehensive indicators regardless of the company’s lifecycle stage. The evaluation will analyse the importance of value-based and accounting performance benchmarks (EVA, Return on Capital Employed, Return on Equity and Earnings per Share) in creating shareholder value, as measured by market value added, throughout the company’s lifecycle. Design/methodology/approach This study is based on a robust empirical analysis of 228 Indian firms listed on the National Stock Exchange Nifty 500 Index from 2006 to 2023. By considering firms of different sizes and ages, the authors aim to capture and analyse any distinct impact across various stages of their lifecycles. Using quantile regression for analysis equips the authors to effectively address extreme events such as the 2008 global financial crisis and the COVID-19 pandemic, making the method particularly suitable for conditionally distributed samples based on size and age. Findings The research reveals that various performance indicators are crucial at different stages of a company’s lifecycle for generating wealth for shareholders. However, considering the significance of the EVA measure, it is recommended that policymakers standardize the calculation of EVA and mandate its disclosure. Originality/value The authors comprehensively analysed the economic value addition relative to a company’s size and age, going beyond previous studies that focused solely on specific size categories. This offers managers valuable insights into aligning business performance measures with the various stages of the business lifecycle.

The impact of cash flow forecasting errors on the accuracy of business value estimation

Aim. To assess the impact of cash flow forecasting errors on the accuracy of business value estimation and to develop a methodology for applying the income approach to business valuation, aimed at reducing these errors and improving the accuracy of business valuation.Objectives. To systematize external and internal factors of cash flows of enterprises of the real sector of economy; to give a qualitative assessment of the impact of large-scale hard-to-predict negative events — the so-called black swans — on cash flows, business value and to determine the requirements to the qualities of a modern manager necessary for effective work in conditions of non-stationary impact of hard-to-predict large-scale external risks; to assess the impact of errors in cash flow forecasting of the post-forecast period on the result of business valuationMethods. On the basis of the system approach the author applied quantitative methods of time factor accounting in financial management, methods of situational, comparative, factor and regression analysis, as well as approaches and methods of financial risk management.Results. According to the results of the research the external and internal factors of cash flows of the enterprises of the real sector of economy were systematized, the most significant factors of deviation of expected and actual cash flows were singled out. A qualitative assessment of the influence of “black swans” on cash flows and business value is given, the requirements for the qualities of a modern manager necessary for effective work in conditions of non-stationary impact of hard-to-predict large-scale external risks are determined. In addition, analytical estimates of the impact of cash flow forecasting errors on the results of applying the methods of income approach to business value assessment are obtained. The methodology of business value estimation, oriented on the increase of estimation accuracy on the basis of taking into account the stages of business life cycle, is offered.Conclusions. The quantitative estimates obtained in the article and the developed recommendations serve as a theoretical and methodological basis for increasing the efficiency of the income approach to business value assessment in conditions of increased uncertainty and market volatility.

Understanding the Role of growth Drivers in Agri tech Startup Ecosystem: Experiences and Learning from Indian Cases

"Increased start-up activity is beneficial to agricultural sector in addressing the bottlenecks in agriculture and as well empowering the stakeholders of agri value chain. In India, the start-ups working in the agricultural sector are confronted with two scenarios. One is, they account for only 7.37 % of total startups and the other is, only around 10.05 % are able to progress to scaling stage while more than 50 % are in their early stages of their life-cycle. Thus, the present study aims to understand the key drivers essential for agri start-ups to progress quickly through business life-cycle stages through a multi case study approach. As B2B is emerging as key revenue generating segment of agri tech start-ups, three agri tech start-ups in this segment having similar line of business and with common competition i.e., traditional agricultural markets are considered for the study. The findings indicated that higher education levels, expertise of managerial team and technological innovation are growth drivers through the ideation, validation and early traction stage. Strategic drivers namely vision, market-oriented opportunity switch, networking and market expansion are playing a key role in growth of identified start-ups. The short term and long-term strategic decisions pertaining to these strategic drivers derived out of day-to-day experiences and learning’s are major growth drivers in pushing the start-ups towards growth stage. While business strategies for achieving scalability, gaining investor confidence are vital growth drivers to attain scale-up stage. An improvement in operating revenues and assets derived out of growth factors is reflected in financial progress."

Grow or successfully disengage? Navigating the revolution of South African tower companies

Subject area of the teaching case: The case is suitable for strategy or entrepreneurship modules. It is designed to teach students about the importance of implementing formal processes when entering a growth phase as well as the complexities, unexpected costs, and benefits that growing a business can bring. Student level: The case is aimed at MBA or Master-level students or executive education programmes as part of a strategy or entrepreneurship module. Brief overview of the teaching case: Lattice Towers is a South African company in the telecommunications infrastructure sector. They are struggling to generate sufficient cash flow to sustain operations as a result of poor strategic decision-making regarding tower-build site acquisition. To compound matters, the owner has been struggling with health issues related to the stress caused by the crises that Lattice Towers is going through. Recently, however, a multinational publicly listed behemoth in the telecommunications industry, Helios Towers, offered to acquire the company. The acquisition offer seems like a saving grace to the owner; however, Lattice Towers is deeply personal to the him and he would not like to lose the brand. Furthermore, there is a tremendous opportunity for business growth due to the imminent increase in demand for tower infrastructure. But based on the challenging financial position the business currently finds itself in, he might not have the option to keep the business. Expected learning outcomes: To develop a decision-making framework and strategy to navigate the business life-cycle stages, from survival to growth Understand the concepts of uncertainty, risk, and liquidity premiums that apply to entrepreneurship Understand the stress-related implications for entrepreneurs Understand the psychological costs and benefits of entrepreneurship Understand the personal financial implications for entrepreneurship

The Influence of Cash Flow Patterns on Random Organizational Development in Nigerian Listed Companies

The objective of this study is to examine whether companies’ life cycle stages follow a random or sequential developmental pattern using their cash flow patterns. That is to ascertain the optimum life cycle stage of Nigerian companies. Data were obtained from the sampled firms annual reports and accounts, which comprises 79 listed companies on the Nigerian Stock Exchange (NSE) from 2009 to 2013 financial years. The cash flow patterns of the firms were thematically analysed as a proxy of developmental patterns, and transition rates between developmental stages were determined. The study reveals that Introduction firms at T0 transited quickly to the Mature stage (70% in T1 through T3), whereas Growth firms developed most rapidly into Shakeout firms (38% at T1). The Mature stage was most stable; 57–65% of firms in this stage at T0 remained so. By contrast, 60% of Decline firms remained in this stage at T1 before transiting to the Mature and Growth stages at T3 and then ultimately fading away at T4, leaving only the Introduction (20%) and Decline (20%) stages. Thus, the development of firms from one life cycle stage to another is random and not sequential. The study, therefore, recommends that Nigerian companies experience their optimum life cycle stage at the matured stage and firms should employ the use of cash flow patterns to identify their business life cycle stage as this will enable companies to apply strategies to sustain themselves at a target stage of the life cycle.

Dare to defy the challenges of online business

The innerwear industry is one of the less researched businesses in India and is dealt as niche vertical of apparel industry. For the yesteryear's customers, buying innerwear was a covert and backroom affair but globalisation, internet and bright entrepreneurial ideas have changed the trajectory. Taking leverage of changing industry dynamics, a budding entrepreneur – Pallavi Khandelwal dared to step into this less explored territory. She banked upon her entrepreneurial skills and strategic decision-making for creating an identity through her internet-based startup to optimise the opportunity and defy the challenges of online business arena. The case serves as the setup to elaborate the aspirations and obstacles confronted by a budding entrepreneur. It provides perfect background to understand how strategic options, resource requirements and critical success factors (CSFs) undergo transformation with the different stages of business life cycle. Industry analysis conducted through references gathered from various reports by business consultancies, industry players, and whitepapers written on this field accompanied an in-depth personal interview with the protagonist Pallavi Khandelwal for establishing facts and data used in the case. Literature review and academic experience of authors are steered to establish the theoretical underpinning of the case.

Трансдисциплінарний підхід в підвищенні ефективності управління інтелектуальним капіталом компанії

The Fourth Industrial Revolution entails the emergence of a fundamentally new type of industrial production, in which intellectual capital will play the role of the most important factor of production. This necessitates the operative and rational management of its components in order to achieve the complex implementation of the company's competitive advantages. Stakeholders need high-quality information and analytical support to increase the efficiency of company's intellectual capital use. The goal of the paper is to determine the priority of financing the elements of primary (human capital) and secondary (structural capital) intellectual capital based on accounting data and financial statements which are determined at the various stages of business life cycle in order to maximize the results of its activities. Methods of analysis and synthesis, modeling, tables and graphics research are used that to achieve this goal. The authors analyze the existing classifications of intellectual capital and define the financial indicators of primary intellectual capital and secondary intellectual capital at different stages of business life cycle. The cost of primary intellectual capital is proposed to include: wage and bonus; training and professional development of employees; certification of personnel; additional pension provision; business trips, participation and conducting of exhibitions, presentations; recruiting. Instead, capitalized costs should be attributed to the value of secondary intellectual capital, in particular: for intellectual property and information infrastructure; licenses; registered trademarks; franchises, etc. In addition, the elements of secondary intellectual capital are reflected in period costs (costs for the formation, support and development of corporate culture, customer base, research and development, structural reorganization, etc.). The authors propose a matrix of priority financing of components of intellectual capital at various stages of business life cycle.

Bank Failure Prediction in Relation to the Business Life Cycle

The results suggest that the capital ratio, loan ratio, non-performing loans, provisions for loan losses, fixed assets, return of equity, ratio of interest income to interest expenses, and ratio of non-interest income to non-interest expenses all had different correlations to the financial distress experienced by banks that were at a business life cycle stage. The logistic model employed in this study for predicting bank failure explains most of the banking trends in NIC banks at the declining stage. The accuracy of G8 banks at the growth stage performed well, whereas NIC banks at the declining stage performed poorly.

Investigation of the Factors Influencing SME Failure as a Function of Its Prevention and Fast Recovery after Failure

AbstractThis paper presents a conceptual framework for investigation of the factors influencing the failure of small and medium enterprises (SMEs) as well as the level of their recovery. Based on the review of literature, all the factors are classified either as individual characteristics of entrepreneurs or non-individual characteristics, that is, characteristics related to SMEs. Having in mind various factors identified by different researchers in their studies, the authors of this paper formed a basic hypothetical framework as well as a qualitative framework for evaluation of the most significant factors influencing SME failure and recovery. Accordingly, a preliminary questionnaire was designed in order to collect the attitudes of entrepreneurs regarding the impact of particular factors. The results of the survey were used for further quantitative analysis and as a base for the formation of a structural equation model for testing the proposed hypotheses.Using the structural equation model to derive results, the authors have found that all the analysed factors except the factors related to private time activities of entrepreneurs/owners of SMEs have a statistically significant influence on SME success, with external non-individual factors having the greatest influence. Furthermore, the results indicate that the level of recovery, business life cycle stage and the sector of a failed SME impact on the ranking of the factors leading to SME failure. The study points to the necessity of improving the conditions under which SMEs operate, primarily by removing the obstacles that hinder growth and development of SMEs as well as by developing the appropriate system of support for entrepreneurs. In addition, having a clear vision of the factors of failure can help SMEs to become more resistant to the adverse effects of these factors and deal with them more effectively.

The Impact of Business Life Cycle and Performance Discrepancy on R&D Expenditures-Evidence from Taiwan

The purpose of this study is to examine the impact of business life cycle and performance discrepancy on Research and Development (R&D) expenditure. Specifically, we argue that managers of firms in different stages of business life cycle make R&D decisions according to their perception of performance discrepancy. We investigate three stages of business life cycle: growth stage, maturity stage, and stagnant stage. Based on a sample of firms listed in Taiwan Stock Exchange, we find that managers of firms in the growth stage tend to increase R&D expenditure when they experience positive performance discrepancy. This implies that growing firms’ slack-resource-driven behavior is leads to the increase in R&D expenditure. There is some evidence that managers of firms in the mature stage tend to increase R&D spending when they experience negative performance discrepancy, indicate that negative performance discrepancy triggers the problem-driven search behavior of managers of mature firms.

Institutional Forces and Life Cycle Stages of Women-led SMEs in Developing Economies

Despite women`s enormous involvement in economic activities through Small and Mediumscale Enterprises (SMEs), their progress has been relativelyslow and the macro environmental influences impeding women-led SMEs have been numerous. These impediments vary at different life cycle stages of the women-led business. As informed by life cycle stage theories of organizations, the formation, establishment, continuation and growth stage of businesses each have their own characteristics and needs, and thus entail specific resource requirements to be fulfilled for proceed to the next stage and/or for ensuring survival. This knowledge builds reasonable certainty that the issues undergone by womenled SMEs may vary and be distinctive at diverse life cycle stages of their businesses. The institutional environment of a country can impose restrictions or facilitate growth of entrepreneurship and small businesses. Even though evidence on issues related to formation, establishment, continuity and growth of women-led SMEs are not rare in the existing literature, the impact of the institutional environment at various business life cycle stages have not been well investigated. Thus, the aim of this study is to examine the institutional forces that affect the businesses at diverse life cycle stages of women-led SMEs in developing economies. Drawing from the institutional theory, the present study examines the institutional environmental forces influencing women-led SMEs at different stages of the business life cycles. It develops several propositions, building relationships among three institutional forces and different life cycles stages passed by women-led SMEs. It examines the effects of regulatory, normative and cognitive dimensions of the institutional environment at developing economy contexts. Based on the previous research findings, it encapsulates how apex level environmental conditions of under-developed institutional environments affect the life course of grass-root level women-led SMEs. Concurrently, the findings shed light on which dimension(s) of the institutional environment are most significant at a distinctive stage of women-led SME.

Supporting knowledge exchange in rural business—A case story from Dumfries and Galloway, Scotland

This study arose from a knowledge exchange project whereby business support and knowledge exchange opportunities were provided to rural small businesses as an academic outreach programme. We review how academic support to small businesses in rural Southwest Scotland was delivered. Academic support for micro-business in Southwest Scotland is an under-researched topic. The owners volunteered to share their experiences of this support with the wider business community and university staff acted as consultants and researchers, mentoring the businesses and developing insights into rural business support. The article describes the processes and outcomes of the project, and the factors which affected the ability of the businesses to take advantage of academic business support. We utilised a case-study approach, in-depth interviews and follow-ups over a one-year period, later adding a longitudinal perspective. Our findings indicate that rural factors, business life cycle stage, sectoral skills availability along with the specific market and organisational context combine to create challenges for small business owners and impact on their ability to access and benefit from business support services. The results are significant for business engagement strategies of universities and for business support policy for small and micro-businesses in geographically isolated regions. The participant-consultant roles of the researchers facilitated the development of rich, ‘insider’ insights into this neglected topic.

Managing Salesforce Compensation During the Growth Stage

The salesforce is a strategic lever of the sales organization for improving sales growth, market share and profitability. Various attributes of salesforce such as its size and structure are key components of salesforce compensation design. This research focuses on this direction and provides methodology to indentify optimal size of salesforce and the right balance between generalized and specialized sales roles in the salesforce structure. The size and structure of the salesforce significantly impact the operation of salesforce in terms of efficiency and effectiveness and hence it needs to change as the sales organization enters the growth stage. It is mainly because these attributes have highest impact on overall success of sales organization in the growth stage compared to other stages of business life cycle. However, designing an optimal salesforce size and structure is an intricate task. This study looks into this area and develops various matrices and analytical tools to determine optimal salesforce size and structure during growth stage. At optimal salesforce size and corresponding structure, sales organization is able to attract, retain and motivate the ‘right’ type of sales people, build long term relationship with customers, gain market share, enhance profitability and thus maximize the value of sales organization. Research develops a financial model and provides a numerical illustration to calculate optimal salesforce size and structure.

Business Life Cycle and Capital Structure: Evidence from Chinese Manufacturing Firms

AbstractThis paper uses a panel data‐fixed effect approach and data collected from Chinese public manufacturing firms between 1999 and 2011 to investigate the impacts of business life cycle stages on capital structure. We find that cash flow patterns capture more information on business life cycle stages than firm age and have a stronger impact on capital structure decision‐making. We also find that the adjustment speed of capital structure varies significantly across life cycle stages and that non‐sequential transitions over life cycle stages play an important role in the determination of capital structure. Our study indicates that it is important for policy‐makers to ensure that products and financial markets are well‐balanced.

Traditional Vs. Contemporary Management Accounting Practices and its Role and Usage across Business Life Cycle Stages: Evidence from Pakistani Financial Sector

The research examines the management accounting practices and its level of usage in services sector of Pakistan. For this purpose, banking companies, Insurance companies, Telecommunication companies and Computer Service companies were selected. The data was collected through adapted questionnaire regarding management accounting practices and its level of usage. There were 90 target listed services companies from service industry where data has been collected. The unit of analysis was company and the responses were analyzed through descriptive statistics. Findings with regard life cycle stages, there are 69% respondents companies belong from growth stage and 24.4% are located in maturity stage. The results indicate that management accounting practices for instance costing practices; budgeting practices & decision making practices are widely used especially traditional management accounting practices in service sector of Pakistan. While in terms of performance evaluation practices, all the non financial measures related to employees, customers and operation or innovation have lower level of usage in service sector of Pakistan irrespective of the business life cycle stage. Moreover, the results reveal that financial companies which are sub sector of service sector are more sophisticated by utilizing management accounting practices but other services companies do not much utilize management accounting practices from financial sector of Pakistan. These results imply that management accounting practices are more complicated as the companies move from growth to maturity stage. In addition, traditional management accounting practices still have the highest level in financial sector of Pakistan based on its importance & usage.

Výzkum kritérií hodnocení podnikatelských projektů ze strany společností investujících Private Equity a Venture kapitál v ČR

For investment decision making to be rational, the existence of investment criteria is required. In the theory of financial management, the effectiveness of investment is traditionally judged by the degree to which an investment proposal contributes to achieving the main financial goal of business, i.e. market value maximization of the firm.So far, potential businesses for Private Equity and Venture Capital financing in the Czech Republic have not had information regarding investment criteria and their significance, when considered by investors, at their disposal, which is due to absence of relevant research results.This article presents results of the research project whose aim is to establish which criteria are considered to perform an essential role in the selection of business proposals by firms investing Private Equity and Venture Capital in the Czech Republic as well as the most common reasons for rejecting the proposals. Based on practical experience of financing by Private Equity and Venture Capital, the research made it possible to identify the most significant criteria, namely characterization of mana­gement, market, product and the rate of investment capital appreciation. The results of the research are consequently compared with findings which were published in similar studies undertaken in the past (e.g. Tyebjee, Bruno, 1984; Fried, Hisrich, 1994; MacMillan et al., 1985, 1987; Muzyka et al., 1996; Eisele, 2002).The research supports the thesis that, when considering business proposals, above-average weight is attached to criteria concerning the characterization of management, i.e. experience and competencies in all stages of business life cycle. Nevertheless, the fulfilment of the criteria is not sufficient for investors to evaluate a business proposal positively. They also place an emphasis on selected criteria related to market and product. By publishing empirical data, an important signal regarding up-to-date evaluative criteria and their weight is sent to those interested in financing by means of Private Equity/Venture Capital as well as investors in Private Equity and Venture Capital funds and to investment companies.

Human Resource Management (HRM), Economic Crisis (EC) and Business Life Cycle (BLC): A Literature Review and Discussion

Today’s turbulent business environments require from firms to continuously re-shape their HR practices and strategies in order to sustain competitiveness within the market. Among numerous factors affecting a firm’s viability and effectiveness, the recent EC, along with firm's BLC, will also present distinctive opportunities and obstacles that will impact upon business’s units and operations. Identifying a firm’s life stage will help organizations to acknowledge their competencies and constricts so to successufully manage future challenges. The present paper examines the different BLC stages, their obstacles and the competitve strategies which organizations can implement on each phase. Based on Hoy’s (2006) BLC model, the stages are analyzed in accordance with business’ HR implementations and strategies. Additional reference is concentrated on the organizational life cycle in the banking industry. Therefore, the paper presents an extensive overview of the relevant literature on business life cycles models, followed by and analysis of a specific BLC model suggested by Hoy (2006).

Based on the"Huang Di nei jing"'s Qingzhi Theory to Adjust Chinese Enterprise Gerent��s Rage Mood

Enterprise gerent in China are suffering from depression disease due to excessive psychological pressure, that leads to they became psychosomatic in an unhealthy state or major illness. Analysis through the business life cycle stage, as well as the use of mathematical language to describe the relationship between the health benefits and seriously ill loss, pointed out that the operators must master precautions for sudden major diseases. Now, many gan diseases are due to long-term anger, therefore the prevention method is to control their emotions and let them not angry. According to the five elements theory of traditional Chinese medicine Huang Di nei jing, we put forward taking the theory of emotions as an important emotion regulation guide through Qingzhi regulation, freshing sweet taste, listenning to music and taking Chinese herbal medicine, the four kinds of treatment programs including Qingzhi regulation、eating delicious food and so on to restrain the angry mood. Also a general risk decision model is established in view of mathematical decision theory for operators or doctor to select the appropriate program to restrain the angry mood, thus opreators can be prevented from psychosomatic major diseases through the view of psychology. Enterprise gerent is a kind of special and scarce human resources, growing in the three-dimensional space in the natural environment including the society's incentive mechanism, constrainting mechanism and market mechanism of [1] . Though they are leading leaders pushing forward enterprise promoting and development, their psychology bears comprehensive pressure from all sides,not only having to manage the normal operation of the enterprise, but also taking care of the elderly and children,2011 Chinese entrepreneurs survey report shows that the number of enterprise operators who feels stressful rises year after year, especially job satisfaction and depression showed very significant negative correlation, due to excessive mental stress they become high-risk population of various diseases [2] , Now even a great many billionaires have choosen suicide to end their life, such as Jiu-Zhi-Tang group ’s 41 years old director Wei Dong，Wan Chang Technology’s 68-year-old director Gao Qingchang and so on have died in succession by jumping off a building. At present it is already verified before suicide that they were suffering from different degree of depression disease. From clinical perspective, the generation of entrepreneurs’ depression is often because of Worried and indignant , caused by many years' excess psychological pressure and a bad emotion expression for people individual getting angry. Angry mood is a intense sentiment with hostile accumulation due to countering things going against people's own wishes and lasting frustration,which blocks blood flow inside body,shows changes in expression, behavior and physiology and leads to various diseases.They usually reduce work pressure by relaxation training, biofeedback, rehabilitation system of human tracking study and holiday way to regulate the poor psychological [3] . However, relaxation training requires the presence of the expert guidance, while the majority Chinese entrepreneurs affected by cultural. The way of releasing poor emotional method select enduring alone and generally do not want to communicate with others. Biofeedback measurement and treatment require specialized equipment, such as the use of psychological measurement equipment, floating therapy equipment, ZCEA smart EAplus meridian oxygen therapy instrument, multi-sensory music therapy instrument and fully automatic brain function diagnosis and treatment instrument, such as those belonging to the sub-health rehabilitation equipment in China nor popular [4] . Human tracking rehabilitation research system research is how to use a monocular vision system and use the Mean-Shift algorithm to track improved real-time human body, nor the increasing use of these methods in China

Applying KM matrix and LCA theory to organizational development

The purpose of this study is to examine how knowledge management has been applied in the business development life cycle. In addition, a proposed knowledge matrix is utilized in conjunction with a production pipeline. This study discusses three of the four different business life cycle stages and their related strategies. Life cycle analysis (LCA) theory is adopted in both the organizational development and knowledge management stages. The knowledge involved in running a business can be represented as a strategic resource which can help to enhance competitive advantage. However, this advantage will be eroded if the company does not continually update its knowledge. Several interesting findings are discussed in this study, such as how globalization affects the profit efficiency of firms implementing different knowledge management strategies. Moreover, this work will also consider which form of knowledge management is most important at different stages of the life cycle of a business. The contribution of this study is that it investigates whether the life cycle of the business plays a role in the use of activity-based costing, quite apart from the actual size of the business. Earlier studies report that the use of activity-based costing increases along with the size of firms. However, although those businesses in the maturity and revival phases of their life cycles are often larger than firms in a growth phase, not all of them can be considered as large companies. A case study of the Taiwanese company that sells golfing products to global market is examined, and several useful strategies are presented for managers. Key words: Knowledge management, life cycle analysis, organization development.

On-line personalized sales promotion in electronic commerce

Electronic Commerce encompasses all electronically conducted business activities, operations, and transaction processing. With the development of electronic commerce in the Internet, companies have changed the way they connect to and deal with their customers and partners. Businesses now could overcome the space and time barriers and are capable of serving customers electronically and intelligently. However, it is quite a great challenge to attract and retain the customers over Internet due to the low barrier of entrance and severe competition. Personalization, a special form of differentiation, when applied in market fragmentation can transform a standard product or service into a specialized solution for an individual. In this research, an on-line personalized sales promotion decision support system is proposed. The proposed system consists of three modules: (1) marketing strategies, (2) promotion patterns model, and (3) personalized promotion products. The marketing strategies contain sales promotion strategies and pricing strategies. Promotion patterns are generated according to various sales promotion strategies, and the promoted prices for the promotion products are generated by considering both the current stages of business life cycle and product life cycle. In the promotion patterns model, by segmenting the market, customer behaviors of three categories can be analyzed by utilizing data mining techniques and statistical analysis to generate personalized candidate promotion products. Finally, multiple evaluation indicators are used and adjusted to rank and obtain the final personalized promotion products. With the promotion products based on customers' past frequent purchase patterns, it has the potential to increase the success rate of promotion, customer satisfaction, and loyalty. In this paper, a prototype system was developed to illustrate how the proposed on-line personalized promotion decision support system works in electronic commerce and a simplified case of performance analysis was conducted for evaluation.