Profit or Growth? Why You Don’t Have to Choose
Bala Chakravarthy and Peter Lorange
( http://www.landmarkonthenet.com/ )
Tension between profitability, growth
Two professors who studied the performance of about 6,000 large public companies throughout the world for over 15 years from 1990 came up with a startling finding: only one in four was able to show sustained profitable growth over any consecutive five-year period, and sustaining growth became progressively difficult with time. At a 10-year horizon, for instance, the percentage of firms that sustained profitable growth dropped to under 5 per cent, and at 15 years it was und er 1 per cent, report Bala Chakravarthy and Peter Lorange in Profit or Growth? Why You Don’t Have to Choose.