The $100 MBA Show

MBA1183 Guest Teacher: Paul Jarvis- Why growth might be the worst thing for your business.

Jan 21, 2019
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INSIGHT

Growth Often Harms Business Longevity

  • Growth isn't always beneficial or sustainable and often leads to failure when prioritized over stability and profit.
  • Smaller, focused companies can endure economic shifts better and maintain profitability longer than rapidly growing ones.
ANECDOTE

1300-Year-Old Hotel Thrives Small

  • The oldest continuously run hotel in the world has thrived for 1300 years by prioritizing customer service over growth.
  • Staying small and focused has allowed it to endure wars, economic booms, and busts successfully.
ANECDOTE

Rapid Growth Ends Ancient Firm

  • Kongo Gumi, the oldest continuously run company, grew rapidly in the 1980s but collapsed due to unsustainable debt.
  • Their rapid expansion during Japan's real estate bubble ended a 1428-year legacy.
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