This paper discusses the potential threat caused by corporate growth. By investigating why companies grow, the author will complete a detailed determination of different reasons why the process of growth can result in serious damage to a company. In addition to this, the purpose is to show ways to minimise risks and establish sustainability within the growth process.
The author starts with a comprehensive literature review which begins with an overview of the changes on global business conditions as caused by technical improvements. A description of active and reactive reasons for corporate growth will follow. After that an outline of different growth strategies and a comparison of different types of enterprises with their specific risks will be given. In connection to that, the author will answer the question “What makes growth dangerous for a company; and how can a firm become prepared to deal with it?” To answer this question the author investigates different growth strategies, especially diversification at the example of implementing services.
Referring to the literature review the author will show three different case studies of growing firms in the second part of this report. In connection to that a discussion about how the theory can be adopted to these realistic cases will follow.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Literature review
- Macro environmental analysis
- Reasons for corporate growth
- Growth strategies
- The potential threat of corporate growth
- Age, size and corporate growth
- Case studies
- Case study 1: Starbucks
- Case study 2: Boeing
- Case study 3: Bombardier
- Discussion
- Conclusion
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the potential dangers associated with corporate growth. It aims to explore the reasons why companies grow and to pinpoint the specific challenges that this growth can pose to a company's success. Ultimately, the paper seeks to identify ways to minimize risks and foster sustainable growth for organizations.
- The impact of global business environment changes on corporate growth
- Different reasons for corporate growth, including active and reactive motives
- Various growth strategies and their associated risks, particularly focusing on diversification
- The dangers of corporate growth, including specific examples of companies struggling with expansion
- Strategies for managing and minimizing risks during corporate growth
Zusammenfassung der Kapitel (Chapter Summaries)
The paper begins with a comprehensive literature review that focuses on the changing global business landscape, particularly due to technological advancements. The review highlights the growth of international trade and the increased competition resulting from easier access to foreign markets. The paper then delves into the various reasons why companies choose to grow, exploring both active and reactive motivations. This leads to a discussion of different growth strategies, including a specific focus on diversification. The paper examines the potential threats of corporate growth, arguing that even successful companies can struggle to manage their expansion. The discussion utilizes case studies of Starbucks, Boeing, and Bombardier to illustrate the challenges of corporate growth in real-world scenarios. The paper concludes by offering insights into how companies can navigate the risks and complexities of growth to achieve sustainable success.
Schlüsselwörter (Keywords)
The paper focuses on the following key areas: corporate growth, global business environment, technological advancements, international trade, growth strategies, diversification, risk management, sustainability, case studies, and company success.
- Quote paper
- Simon Hoese (Author), 2007, The potential threat of corporate growth, Munich, GRIN Verlag, https://www.grin.com/document/79604
