Private Equity, blah blah blah, capitalism, blah, tendency to monopoly, blah blah.
Cadbury Schwepps announced plans to split into two separate businesses.
“Splitting into two distinct companies could dramatically increase Cadbury’s value – perhaps by £3.4bin
“It may also become easier to manage after suffering a spate of problems”
This is happening under the threat of a takeover by a private investor.
The force driving companies to get bigger is Parkinson’s Law. The force tearing them apart when they get unmanagably large is the market.
The size of a company that matters for organisation is not the annual turnover, it is the number of decision-makers.