Business organization represents a conscious association of people who have a common goal, in support of the goals with the least possible effort. Business organization, as well as a living organism, has its own life cycle, which represents a path in its development. During its life cycle, organization has a different level of development of flexibility and selfcontrol, and optimum development is achieved in the top shape of the life cycle. Unlike the biological systems, organizational systems, can stay in top shape for a longer period. The life cycle provides a better understanding of changes within the organization and their effect on it. Pevec d.o.o. is an organization that has passed through all stages of life cycle. It was established in 1990. and started continuously to develop and grow. The growth in 2000. led to a large expansion in the areas of the Republic of Croatia and abroad. In 2009. Pevec d.o.o. ends into bankruptcy and that was the end of its life cycle.