"The larger the corporation (by total employee count) the less nimble they become."
That's because of antiquated management structures. Look at Gore and Associates (makers of Goretex) for a modern corporate structure. Elements of a corporation should be almost completely independent and the only reason they are part of one entity is because of synergies and cooperation.
To give a toy example, McDonalds might grow and slaughter their own cows because they can better place them near their distribution facilities. Buying from a third party might create unnecessary overhead.
I'm sorta oversimplifying things, but I'd recommend reading
"Re-Creating the Corporation" by the late Russell Ackoff to appreciate why corporations exist (and why sometimes they shouldn't)
In-n-Out Burgers does run their own butcher department. The company structure worked pretty well too, since the company did not stumble when a big chunk of the executive team and the CEO died in a plane crash. see http://fora.tv/2009/07/14/In-N-Out_Burger_Stacy_Perman#Histo...
Thanks for the book reference. Looks interesting. If it's one thing I believe it's that there is not a single approach to anything. This seems like a good book for me
I do believe there are things that large corporations can do well and they do have their place. I hope that with technology advancements smaller companies can compete is some spaces traditionally well suited to these larger organizations.
That's because of antiquated management structures. Look at Gore and Associates (makers of Goretex) for a modern corporate structure. Elements of a corporation should be almost completely independent and the only reason they are part of one entity is because of synergies and cooperation.
To give a toy example, McDonalds might grow and slaughter their own cows because they can better place them near their distribution facilities. Buying from a third party might create unnecessary overhead.
I'm sorta oversimplifying things, but I'd recommend reading
"Re-Creating the Corporation" by the late Russell Ackoff to appreciate why corporations exist (and why sometimes they shouldn't)
http://www.amazon.com/Re-Creating-Corporation-Design-Organiz...