ABSTRACT
This chapter explains a case study approach partly to throw light on organisational factors. It investigates the reasons for strategic moves on the part of firms. The Marris model of the firm is a steady state growth model, but it contains many features of interest to a study of the growth of actual firms. They aim to maximize the rate of growth of their firms, subject to some minimum profit rate, and hence subject to some minimum stock-market valuation for their firms shares. It is true that these two young firms have an outstanding record of growth and profitability which is why we chose them but there are other young firms which have done far less well, including many which went out of existence before they reached maturity. It is clear from this brief discussion that the picture of the relationship between rate of growth, retention ratio and profit in the Marris model can be misleading outside his model.
