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On philosophical theoretic grounds:

I believe that such "decay" processes are inevitable in the long run, following organizational growth as time goes by. Maybe in the advanced management theory someone has yet to formulate the laws/principles of corporate thermodynamics. (This is not my original thought, I've read it somewhere but can't remember the source).

On a more practical grounds, a few seeming counter examples:

- Virgin Group is a highly decentralized conglomerate of 300+ businesses all over the world and each of them is mostly autonomous (Though when you think of Virgin Group there is only one personality springing in mind - that of Richard Branson)

- Well, Apple, of course.. Though some say Apple of the 2000's after Steve Job's return is a different company entirely (in most of the aspects but those concerning mainly legal formalities around the corporate entity, its registration details, and logo design principles).

P.S.

So the point of a startup to a business is that of a birth and early childhood to a human.

Businesses (as functional organizations) and humans (as living beings) have ultimately the same fate in the end, though the time-scales differ.




Virgin has always described itself as a branded VC company, not a large business.




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