Summary of Managing Corporate Growth

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Rating

9

Qualities

  • Innovative
  • Applicable

Recommendation

While most scholarly studies of business (or any other subject) can be dry and impenetrable, that is not the case with this one. Jordi Canals writes clearly and eloquently about the ups and downs of corporate growth, and includes plenty of case studies that focus on companies around the world. Citing dozens and dozens of studies (listed as references at the end of the book) throughout the text, this economics scholar never descends into the deep, dark pit of deliberately unreadable prose. The author writes that this book is for MBA students, professional managers, and entrepreneurs; getabstract.com agrees, and notes that others in business, finance and the media will also enjoy it and benefit from its insights.

About the Author

Jordi Canals is associate dean and professor of economics and general management at the International Graduate School of Management at the University of Navarra, in Barcelona.

 

Summary

Growth Forces

Corporate growth is a complex issue for individual companies and for entire industries, economies and nations. Growing firms that innovate and create value and new jobs contribute to a nation’s health. Massive lay-offs in the U.S. and other Western countries have led to the current need for growth. While corporate efficiency - one of the goals behind the lay-offs - is necessary, it is not a sufficient condition for corporate survival. Companies must think about their future evolution and growth, which should ideally occur neither too quickly nor too slowly. You can understand corporate growth and processes by looking at three basic questions:

  • What factors influence corporate growth and how do they interact?
  • How are growth decisions made?
  • What are the limits and sustainability of corporate growth - Why do companies in some industries grow more quickly than others, over relatively long periods of time, and why are some companies unable to continue their growth?

Most studies of corporate growth have been incomplete and have not addressed these questions. When you study the decision-making process that companies go through...


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