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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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The Limits to Corporate Growth

The Limits to Corporate Growth

(p.157) Chapter 9 The Limits to Corporate Growth
Managing Corporate Growth

Jordi Canals

Oxford University Press

This chapter explores the limits and constraints to corporate growth, or, in other words, what factors may halt a company's growth process. The traditional strategy approach has stressed that the company's evolution over time depends on the fit or consistency between the firm's strategy, its organization, and the industry. This chapter presents and develops the concept of strategic harmony, which is essential for understanding the limits and constraints of corporate growth. It also analyzes some of the firm's external and internal factors that can give rise to disharmony and may eventually impede sustainable growth. Internal and external limits to growth are closely interrelated. It could not be any other way, as the growth model and the growth process presented in this book show a continuous interplay. The internal context, the firm's resources and capabilities, its business concept, on the one hand, and the external context in which the company carries out its activities, on the other, are like two wings that help corporate growth fly or stop.

Keywords:   corporate growth, strategy, growth process, organization, industry, internal factors, business concept

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