4 BIG FIRMS, ISOLATED SHOCKS
When shock can be quarantined
The previous chapter looked at potentially overwhelming shocks impinging on organizations of a small size. Let's move along the spectrum of resilience now and consider larger firms. Let's not worry too much about the exact size of the firm in terms of number of employees or revenue, but let's assume a firm that is large enough to have evolved into separate business units, separate subsidiaries. The firm has grown and diversified, product-market-wise, geographically, or both. The inevitable shocks that come along may not confront the different parts of the firm in the same way. In the case of international firms, we find that even in the same host country different subsidiaries can ...
