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Getting Bigger by Growing Smaller: A New Growth Model for Corporate America by Thomas T. Stallkamp, Joel M. Shulman

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Chapter 1. Grow Smarter or Die: The Formation of a Strategic Entrepreneurial Unit (SEU)

“Grow smarter or die.” That’s the stark choice facing corporate leaders today. And seldom has growth seemed so difficult to attain. Global competition has increased and capital providers have lost their appetite for risk. Worse, the very incentive and motivational structure of large corporations often rewards senior executives and middle managers to conspire against growth. Senior executives, knowing their time at the top may be limited, too often make decisions with a short-term payoff in mind, rather than seeking the long-term health of the enterprise. This encourages them to accelerate compensation through company stock options or “cash out” through merger ...

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