Monday, December 12, 2011

Redefining business structure

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This organizational structure made the company a fat one and not that agile.

The global market is acting in two parallel directions:

The latter direction is the process of a widening gap between large companies and small ones. This is created because big companies are swallowing middle size ones to avoid competitive forces. As part of this process big companies will buy or merge with middle size companies that fit their own long term strategic needs. As a result, the big companies will become bigger and the number of middle size will shrink down.

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