Summary: Getting Bigger by Growing Smaller E-Book

BusinessNews Publishing

• Herausgeber: Business Book Summaries
• Kategorie: Lebensstil
• Sprache: Englisch

Seitenzahl: 34

Veröffentlichungsjahr: 2013

Beschreibung

The must-read summary of Joel Schuman's book: "Getting Bigger by Growing Smaller: A New Growth Model for Corporate America".

This complete summary of the ideas from Joel Schuman's book "Getting Bigger by Growing Smaller" shows how today's companies need a smarter way to grow. It is no longer useful to focus on major investments or acquisitions - the best place to look for future growth is actually in small entrepreneurial initiatives and ideas which take advantage of the established firm's research and development capabilities. In his book, the author explains how new commercial entities called Strategic Entrepreneurial Units are needed in order to establish direction and take advantage of the corporation's access to capital, relationships and other infrastructure assets. This summary offers practical guidance for implementing SEUs and implementing a powerful new growth model.

Added-value of this summary:
• Save time
• Understand key concepts
• Expand your knowledge

To learn more, read "Getting Bigger by Growing Smaller" reveals the future key to success that can be found in small established corporations.

Leseprobe

Book PresentationGetting Bigger By Growing Smaller by Joel Shulman

Book Abstract

About the Author

Important Note About This Ebook

Summary of Getting Bigger By Growing Smaller (Joel Shulman)

1. The Key Challenges Facing Corporate America At Present

2. The Solution

3. The Keys To Making This Solution Work

Book PresentationGetting Bigger By Growing Smaller by Joel Shulman

Book Abstract

MAIN IDEA

Companies today need a smarter way to grow. The traditional approach of focusing on major investments or acquisitions is running out of steam. The most fertile place to look for the growth of the future is actually in small entrepreneurial initiatives and ideas which take advantage of the established firm’s research and development capabilities, but which will not be burdened by the bureaucracy of the established corporation.

What’s needed, therefore, are new commercial entities called Strategic Entrepreneurial Units (SEU). An SEU template is:

SEUs capture the best of both worlds – the new venture will be able to make its own decisions and establish its own strategic direction but at the same time take advantage of the established corporation’s access to capital, established relationships and other infrastructure assets. As a result, the SEU should create value for those involved in the new venture and the parent organization.

About the Author

JOEL SHULMAN is associate professor of entrepreneurship at Babson College. Dr. Shulman, a graduate of Harvard, specializes in providing training for investment professionals. In addition to lecturing, Dr. Shulman has also consulted for the World Bank where he assisted with the development of capital markets throughout Central Asia and in the former Soviet Union. Dr. Shulman is the author or co-author of more than seven books including How to Manage and Evaluate Capital Expenditures and Planning Cash Flow.

Important Note About This Ebook

This is a summary and not a critique or a review of the book. It does not offer judgment or opinion on the content of the book. This summary may not be organized chapter-wise but is an overview of the main ideas, viewpoints and arguments from the book as a whole. This means that the organization of this summary is not a representation of the book.

Summary of Getting Bigger By Growing Smaller (Joel Shulman)

1. The Key Challenges Facing Corporate America At Present

Big companies don’t seem to endure all that well. Despite all the advantages available to them (economies of scale, marketing savvy, strong channels of distribution), large corporations typically don’t get bigger and stronger over time. Instead, they often become increasingly irrelevant and out of touch with the marketplace until eventually they are forced to close their doors. What’s needed is a workable way to implant entrepreneurial thinking inside the corporate walls in such a way that wealth can be created on an ongoing basis.

Specifically, corporations face four key challenges:

Finding effective ways to renew the corporate spirit and stay vibrant and successful over an extended period of time.Developing better ways to link employee compensation with the creation of long-term value.Overcoming internal resistance to change.Generating genuine growth in revenues and profits.

1. The need for corporate renewal

Loads of ideas have already been tried to extend the life cycle of large corporations:

In the 1960s, acquisitions were all the craze, with diversification as the main aim.In the 1970s, many companies tried to generate growth internally through intrapreneurship programs.During the 1980s, creating value through financial techniques (junk bonds, leveraged buyouts, financial asset repackaging) was tried.In the 1990s, corporate venture groups became the fashion, with spinoffs being taken to IPO stage as rapidly as possible.

All of these fads had their moment in the sun, but none have been able to extend the corporate life cycle appreciably. More than 80-percent of today’s Fortune 500 companies have been in business for less than 100 years, and more than a third of the Fortune 500 companies are less than 25-years old. With very few exceptions, older companies don’t keep gaining in strength over the years, but lose out to younger, more aggressive companies with new ideas.