Half Life: Extending the Effective Lifespan of the Corporation through Strategic Management of Industry Diversification, Globalization, Mergers, and Acquisitions

Front Cover
Geoffrey P Forster, Dec 15, 2010 - Business & Economics - 372 pages
What is the lifetime of a corporation? This is a critical question for it impacts not only how we make longer term investments in established corporations, it also impacts how often we need to restructure an investment portfolio.Large, established, and once successful corporations and their associated brands continually emerge and disappear in any healthy, competitive business environment. However an important trend is emerging in that the mean life time for large established corporations has more than halved in the last 50 years. This observation is of critical importance to business analysts, investors, executives and corporate directors, for it is a core parameter in determining the long term valuation of a business.In Half Life Forster documents a detailed study of corporate survival trends, and examines and extends the existing landscapes, tools, models and indexes used to monitor the corporate life cycle. Forster goes on to describe the creation of a new business fitness landscape model, introduces two new business risk parameters, creates a new business diversity fitness index, and completes a macro analysis of the extinction rates associated with the 100 largest corporations in the United States.With these new tools Forster establishes a new model for viewing the mean life and half life of large corporations and for studying the impact that related and unrelated diversification in industry participation has on a corporation's effective lifespan. Forster suggests that established corporations don't survive just by being the fittest, but that they survive rapid discontinuous change by finding a new optimum position in a new business fitness landscape.
 

Contents

FOUNDATION
23
CONCEPTUAL FOUNDATIONS
49
3
75
EXISTING BUSINESS LANDSCAPE MODELS
89
TWO NEW BUSINESS RISK PARAMETERS
111
AN ANALYSIS OF CORPORATION DECAY
127
A NEW BFL MODEL
159
Summary of the business fitness landscape model
217
APPLICATION TO SELECTED BUSINESSES
251
CONTRIBUTIONS AND CONCLUSIONS
289
REFERENCES
317
LIST OF FIGURES
333
LIST OF TABLES
339
GLOSSARY OF MATHEMATICAL SYMBOLS
353
Copyright

Other editions - View all

Common terms and phrases

About the author (2010)

!--[if gte mso 9] ![endif]--

!--[if gte mso 9] Normal 0 false false false false EN-US X-NONE X-NONE ![endif]--!--[if gte mso 9] ![endif]--!--[if gte mso 10] ![endif]--

GEOFFREY FORSTER has a significant technology and business background as well as a PhD in Strategic Management. Geoff has over twenty five years experience in disruptive technologies as an industrialist, executive manager, entrepreneur, and business consultant, working with a wide range of start-ups, mid tier, and large corporations in North America and Asia Pacific.

Geoff has worked, and is working with many of the largest corporations in the world, including NTT Docomo, Fujitsu, ROLM, ITT, NASA, IBM, Avaya, Honda, and Intel. As a founder, executive, or angel investor of a number of start-ups, including ATC, Tatum Partners, MediaDNA, c3Global, Assured Geoengineering Corporation, and SunKosi Capital.

Geoff lives in Del Mar, California, with his wife and two children.

Bibliographic information