Developmental Models and Corporate Growth

by Seymour Tilles



This article focuses on the issues, in relation with corporations' growth. Firms grow larger in a variety of ways. One is by acquisition and merger. A second is by increasing the number of locations at which a particular activity is carried on. A third is by simply getting bigger at a single location. Each of these has quite different implications for management. Whenever a firm chooses to grow by acquisition and merger, the major internal changes occur in the jobs of the top management. While geophysical exploration remained the core of the business through the, war, toward the end of the war two of the company's founders began to think about the postwar future of the firm. In terms of the biological analogy, they decided on an important basis for differentiation. One of the most thought-provoking models for the manager interested in understanding corporate growth. One of the key prerequisites of rapid economic growth is investment in social overheads, in activities which are nevertheless essential. In fact, without such investment, especially in such fields as education, transportation, and housing, economic development cannot be sustained.

California Management Review

Berkeley-Haas's Premier Management Journal

Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

Learn more
Follow Us