Many companies fail to deal with their success when growing too fast. The effects of
corporate growth in general and explosive growth in particular can endanger the
existence of companies that are not prepared for it.
This dissertation deals with issues of explosive growth and shows different growth
strategies as well as some issues of change management that need to be
considered. It is important to manage change successfully as it affects the
employee’s performance. Communication and involvement of employees are
considered to be very important.
Furthermore some problems that are directly linked to explosive growth are shown.
Problems can occur in terms of recruitment of appropriate staff on time or computer
systems that do not grow with the company. Financial problems can occur when
working capital is poorly managed.
In order to answer the question in the research title, secondary and primary research
have been undertaken. Secondary sources were mainly books but also various
articles in journals, newspapers and on the internet.
Primary research has been undertaken in order to get a better insight into issues of
explosive growth. The methods used were semi-structured interviews and
observation in four different companies. The findings underline the importance of
change management as culture changed in all four companies, affecting behaviour
and performance of employees.
The recommendations at the end of this dissertation reflect the key issues for
success that have been identified during this research. These include issues like a
profitable core business and successful growth strategy as well as a clear focused
management. A multigenerational staffing plan that goes with the product plan can
help to find appropriate staff in time and leasing is an easy way to upgrade the whole
computer system as soon as it becomes necessary in order to avoid problems.
Table of Contents
1.Introduction
1.1 Background
1.2 Research question
1.3 Purpose
2. Literature review
2.1 What is corporate growth?
2.1.1 Active growth
2.1.2 Reactive growth
2.2 Growth strategies
2.2.1 Growth pathways
2.2.1.1 Organic growth
2.2.1.2 Leveraging
2.2.1.3 Merger & acquisition
2.2.1.4 Joint venture
2.2.2 Choosing a strategy
2.3 Measures of growth
2.4 Normal versus explosive growth
2.5 Growth and change
2.6 Change management
2.6.1 Reasons for change
2.6.2 Reactions to change
2.6.3 How to manage change successfully
3. Main areas where problems occur in a fast growing company
3.1 Cash flow
3.2 Management issues
3.3 Human resources
3.4 Working capital management
3.5 Computer resources
4. Key issues for explosive corporate growth
5. Methodology
5.1 Purpose of the research
5.2 Research objectives
5.3 Research design
5.3.1 Secondary research
5.3.2 Primary research
5.3.2.1 Observation
5.3.2.2 Interviews
5.4 Data quality issues
5.4.1 Reliability
5.4.2 Forms of bias
5.4.3 Validity and generalisability
5.5 Overcoming data quality issues
5.6 Research ethics
6. Findings
6.1 Blackwell Publishing Limited, Oxford, UK
6.2 GTI Specialist Publishers, Wallingford, UK
6.3 IT-Solutions, Oxford, UK
6.4 ATU – Auto-Teile-Unger, Weiden i.d.OPf., Germany
7. Discussion
7.1 Strategies
7.2 Changes
7.3 Problems related to growth
7.4 Key issues for explosive growth
8. Conclusion
9. Recommendations
10. Appendix
11. Bibliography
Objectives and Research Themes
This dissertation examines the phenomenon of "explosive" corporate growth, analyzing whether such rapid expansion serves as a strategic opportunity or an existential threat. The study investigates the mechanisms of growth, the associated organizational challenges, and the vital role of change management in maintaining operational performance during high-paced expansion.
- Theoretical analysis of corporate growth definitions and strategies.
- Exploration of change management and its impact on employee performance.
- Identification of critical problem areas in rapidly growing companies (cash flow, HR, IT).
- Primary empirical research through interviews and observation in four diverse companies.
- Development of actionable recommendations for managing explosive growth effectively.
Excerpt from the Book
1.1 Background
As paradoxical as it sounds, one of the toughest problems facing many of today’s most successful companies is success itself. Like living organisms, companies are complex networks of interdependent systems – and unless managers recognize and swiftly implement the changes to those systems required by a sudden surge in demand, a booming business can easily go bust under the train. Recent history is full of examples of companies whose overnight success led to morning-after failure because their managers, like most managers, lacked the training or experience needed to manage explosive growth (Bragg 1999).
An article in the Business Week by Browder and Reinhardt (1998) shows that even some of the world’s best-managed companies like Boeing faced troubles handling explosive growth. After being flooded with orders as the worldwide market for new airliners has grown, Boeing hired 19,500 employees in 1996 through 1997 to double its production schedule. However, for a variety of reasons, Boeing had to shut down its 747 and 737 production lines for a short time so that workers could catch up on out-of-sequence work while waiting for back-ordered parts to arrive. That delayed deliveries to several airlines, and forced Boeing to pay an estimated $300 million in penalties to customers.
Summary of Chapters
1.Introduction: Outlines the research scope, specifically addressing the dual nature of explosive growth as both an opportunity and a potential threat.
2. Literature review: Provides a theoretical foundation covering corporate growth categories, growth strategies, and the critical intersection of growth and change management.
3. Main areas where problems occur in a fast growing company: Details common operational pitfalls such as cash flow, management, human resources, and IT infrastructure.
4. Key issues for explosive corporate growth: Identifies strategic success factors including core business focus, environmental scanning, and organizational restructuring.
5. Methodology: Describes the research design, emphasizing the use of primary data from interviews and professional observation.
6. Findings: Presents empirical case studies from four companies to illustrate real-world applications of growth theories.
7. Discussion: Links the primary research findings back to existing academic theories regarding strategy and change.
8. Conclusion: Summarizes how the study achieved its research objectives and evaluates the research constraints.
9. Recommendations: Offers practical guidance for managers on navigating explosive growth while maintaining organizational health.
Keywords
Explosive Corporate Growth, Change Management, Strategic Planning, Business Strategy, Cash Flow Management, Human Resources, Organizational Structure, Corporate Culture, Rapid Expansion, Market Leadership, Operational Performance, Risk Mitigation, Environmental Scanning, Business Development, Scalability.
Frequently Asked Questions
What is the core focus of this dissertation?
The research investigates the paradox of explosive corporate growth, exploring how companies can harness rapid expansion as an opportunity while mitigating the significant threats that accompany it.
What are the primary themes discussed?
The work centers on growth strategies, the necessity of change management, identification of structural problems in fast-growing firms, and key success factors for sustained growth.
What is the main research objective?
The aim is to identify the pitfalls associated with fast-paced growth and provide actionable recommendations to help managers transition from reactive to proactive growth models.
Which research methodology was utilized?
The author employed a triangulation approach, combining an extensive literature review (secondary research) with qualitative semi-structured interviews and first-hand observation of four specific organizations (primary research).
What does the main body of the work cover?
It covers theoretical frameworks of growth, detailed discussions on change management models, and specific operational challenges in areas such as finance, human resources, and IT.
How would you characterize this work using keywords?
The study is characterized by concepts like explosive growth, strategic planning, organizational change, risk management, and human resource development.
How does the author specifically view the merger at Blackwell Publishing?
The author discusses the merger as a strategic move to handle growth, noting that while it caused initial internal cultural tensions and rumors, the company successfully managed these through structural adjustments.
What specific finding regarding ATU differentiates it from the other case studies?
The author notes that ATU is the only company among the four studied that utilizes a model of independently operating units connected to a hierarchical corporate structure to manage its aggressive expansion pace.
- Quote paper
- Alexander Scheling (Author), 2004, Explosive corporate growth - opportunity or threat?, Munich, GRIN Verlag, https://www.grin.com/document/28783
