In To Keep Your Company Growing, Think Of Your Business As A Forest–And Burn It Down Sometimes, Kaihan Krippendorff talks about lessons learned from David Hurst and his new book, The New Ecology of Leadership.
“David introduces the study of “ecologics”–ecology applied to human behavior–and shows that this challenges the economics principles we’ve been fed. Economists seek to show that markets reach a natural equilibrium where supply meets demand. But nature does not work that way. Forests, for example, repeat cycles of creation and destruction. Out of brush spring young trees which grow into dark forests, kill off new shrubs, become unstable and catch fire, clearing the ground for the cycle to repeat. Why, then, should we expect companies, markets, and economies not to follow the same pattern?”
Benzinga Insights gives a quick recap on Apple‘s market cap, makes a quick comparison to Microsoft, and predicts Apple’s future in Apple Now Most Valuable Company in History:
“Given the company’s unbelievable innovation over the last few years, and the subsequent mountains of cash that it has earned as a result, the likely catalyst for the stock to eventually peak and decline will be Apple’s inability to continue to innovate at its current pace. … In the current environment, however, Apple is showing few signs of slowing down and could very easily make a run at becoming the most valuable company in history in both absolute and inflation-adjusted terms.”
In Corporate Breakups: The Hot New Growth Strategy, Larry Popelka talks about how some large corporations are using corporate breakups to spur growth and innovation. Corporate breakups result in smaller firms, better focus and improved management capabilities.
“Perhaps the biggest problem with large companies today, though, is organizational inefficiency. Most companies describe their breakups as allowing them to “increase focus.” But what they really mean is it has simply become too darn hard to manage and grow big companies.”