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Managing Corporate Growth$
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Jordi Canals

Print publication date: 1999

Print ISBN-13: 9780198296676

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198296676.001.0001

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Understanding Corporate Growth and its Process: An Explanatory Model

Understanding Corporate Growth and its Process: An Explanatory Model

Chapter:
(p.32) Chapter 3 Understanding Corporate Growth and its Process: An Explanatory Model
Source:
Managing Corporate Growth
Author(s):

Jordi Canals

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198296676.003.0003

This chapter presents a conceptual model that seeks to explain the growth of the firm. This model considers that corporate growth and the growth process itself are dependent simultaneously on the five variables presented in earlier chapters, one of which is resources and capabilities. The relationship with resources and capabilities is straightforward. These are not limiting factors, but they do mark certain opportunities for action and the possibilities of success that a particular action may have. Thus, the decision to diversify has to look, not only at the other company's businesses from the market viewpoint, but also at the possibility of deploying resources and capabilities in the new business that the company previously used in other businesses. There is a clear relationship between strategic decisions and the firm's external context. The industry and the external context has contributed to shaping the company's competitive position at a certain time through the intersection process.

Keywords:   conceptual model, corporate growth, diversify, business resources, strategic decision

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