What is the optimal rate of growth of the maximum gross income for the shareholders? This is an important question facing both managers and investors. The answer lies in the concept of the company's growth corridor, which is installed on the top of the financial sustainable growth and lower bounds of competitive growth. Using data from the Fortune Global 500 companies, the authors found that those companies that are growing in their respective corridor above-average growth to create the total income of the shareholders. Drawing examples from companies such as AES, BMW, Marks & Spencer, Ao, and Wal-Mart, they show how managers can determine their growth corridors, and how they can restore healthy and smart growth. "Hide
by Sebastian Raisch, Georg von Krogh Source: MIT Sloan Management Review 10 pages. Publication Date: April 1, 2007. Prod. #: SMR244-PDF-ENG
Related Case Solutions & Analyses:
XenSource (C)
Understanding and Breaking the Rules of Business: Toward a Systematic Four-Step Process
Loyalty Myths
Country Analysis: Framework to Identify and Evaluate the National Business Environment
Southwire: Beyond 2000
Mass Production and the Beginnings of Scientific Management
HomeGrocer.com: Anatomy of a Failure
Forbes Technosys Limited (A): Bill Payment Kiosk Business
CircusTrix: The Ups and Downs of International Expansion
Meeting Ontario’s Goals in the Restructuring of General Motors of Canada Limited
