New rule agile

New rule agile - New rule: Agile is best; being big can...

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New rule: Agile is best; being big can bite you. Old rule: Big dogs own the street. By Betsy Morris , Fortune senior writer July 11 2006: 10:06 AM EDT NEW YORK (Fortune) -- Until the very end of the last century, big meant good in the business world. B-schools taught the benefits of economies of scale. The greater your revenue, the more you could spread fixed costs across units sold. With size came dominance - of airwaves, store shelves, supply chains, distribution channels. Until the mid-1990s, a company's market value usually tracked its revenue. Then strange things started to happen. Microsoft's ( Charts ) market cap passed IBM's in 1993, even though Bill Gates' $3 billion in revenue was one-twenty-second that of IBM ( Charts ). Scale didn't insulate GM ( Charts ) from near-catastrophic decline. The big dogs seemed to hit a wall. (The median FORTUNE 500 company is now three times the size it was in 1980, in real terms, and thus much harder to manage.) Citigroup ( Charts ), built through acquisitions by Sandy Weill to deliver consistent
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This note was uploaded on 04/15/2008 for the course BCOR 2300 taught by Professor Lopresti,a during the Spring '07 term at Colorado.

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