Why Corporations Will Die (Including Google)
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Why Corporations Will Die (Including Google)
1–9 of 9 posts
Re: Why Corporations Will Die (Including Google)
#2That's a communist view ;)
Re: Why Corporations Will Die (Including Google)
#3here's the talk on the ted website:
http://www.ted.com/talks/geoffrey_west_the_surprising_math_o...
Re: Why Corporations Will Die (Including Google)
#4First, just say no thank you to autostart videos.
Two, the constitution as it is currently interpreted, prefers the corporate entity over the dna entity.
Re: Why Corporations Will Die (Including Google)
#5It is a theory that the organization internally continues to grow- and so net income per capita decreases or is increasing at a decreasing rate.
In other words: Companies grow by the engineers, handed over to accountants and then to the lawyers. And then they die.
Re: Why Corporations Will Die (Including Google)
#6First, just say no thank you to autostart videos. Two, the constitution as it is currently interpreted, prefers the corporate entity over the dna entity.
Yes! Let's downvote as opposed to reply. Downvote is a nice anonymous hit and expresses your displeasure in a nice anonymous way! Woot!
Re: Why Corporations Will Die (Including Google)
#7It's called Diseconomies of scale.
At some point, growing past a certain point causes decreasing returns to scale instead of increasing/constant returns to scale. Meaning over-scaling leads to a breakdown in efficiency.
Example using Walmart: Year by year it gets more efficient, and more efficient, and more productive, until one day the company starts becoming top heavy and full of red tape at which time it becomes less efficient from all the layers of administration, from burdensome policies and processes, [insert any factor here], etc. It has gone past it's 'profit maximizing size' and has gone too far.
It is not an argument against corporations, just an argument against "bigger is always better". There will always be companies.
Re: Why Corporations Will Die (Including Google)
#8It's called Diseconomies of scale. At some point, growing past a certain point causes decreasing returns to scale instead of increasing/constant returns to scale. Meaning over-scaling leads to a breakdown in efficiency. Example using Walmart: Year by year it gets more efficient, and more efficient, and more productive, until one day the company starts becoming top heavy and full of red tape at which time it becomes l…
Right- and are we doing ourselves a diservice by having "Too Big to Fail"- and having companies grow past the optimal size?
Once it is too large, each employed person's output is smaller than what it could be in a smaller company. Which is why a lot of people leave large companies to launch start-ups and why a lot of start-ups that are acquired fail when in a larger and bureaucratic system.
Re: Why Corporations Will Die (Including Google)
#9Nice video, but what value does wrapping it in an empty blog post provide?