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Published byJulie Hunter Modified over 8 years ago
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Torstar Corporation Survival by Controlled Growth by J. Y. Shen
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Objective Organization Growth Controlled Growth Torstar’s History – Similarities to Greiner’s Model – Distinction from Greiner’s Model Torstar’s Controlled Growth – Advantages – Disadvantages Torstar’s Future
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Organizational Growth Greiner’s Model – Growth through creativity Crisis of leadership – Growth through direction Crisis of autonomy – Growth through delegation Crisis of control – Growth through coordination Crisis of red tape – Growth through collaboration Crisis of ?
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Controlled Growth Restricted growth rate – Despite favorable environment – Incremental growth – Adjust before next step in growth – Find best growth direction Centralized Management – “Family owned” – Remain in direction stage – Improve core competence
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Torstar Corporation Book Publishing Newspapers Printing & Distribution Internet & Multimedia
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Brief History Birth of Evening Star Present 18921948 1976 Atkins as publisher Atkins’ Death Renamed The Star Reach top Atkins’ Charitable Foundation Charitable Gift Act The Star bought by Trustees Honderich as publisher Renamed Toronto Star Establish Torstar Corporation Bought Harlequin Galloway as CEO Prichard as CEO Romance WarNewspaper War Expansion
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Torstar Development Eras Pre-Atkins Era (1892 – 1899) – Birth Atkins Era (1899 – 1948) – Growth (Creativity and Direction) Post-Atkins Era (1948 – 1976) – Growth (Direction) Torstar Era (1976 – present) – Growth (Direction – Delegation)
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Atkins Era Growth through creativity – Identify niche – Establish reputation – Attract readers Smooth transition into Direction Stage – Balance the finances – Monitor the organizational structure Controlled Growth – Maintain optimal size
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Post-Atkins Era Direction Stage – leadership crisis and autonomy crisis Maintain Status Quo Growth under Honderich – Maintain core competence – Expand into related fields – Slowly acquired entire Harlequin Enterprises
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Torstar Era – Honderich Dynasty Torstar Corporation – Divisional structure – Honderich is CEO and Director Honderich’s Objectives – Maintain core competence publisher of Toronto Star – Adjust to the acquisition of Harlequin Galloway to fight Romance War
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Torstar Era – Galloway Dynasty Direction not Delegation Stage Galloway – Under the Board Board insist on resisting the convergence trend Low level of debt and solid core competence – Achievements Acquire numerous newspapers – Failures High tech education, internet
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Torstar Era – Present Departing from Controlled Growth – Little centralized power at Board level Shifted into Delegation Stage – Making many new acquisitions, alliances – Growing quickly – Moving towards control crisis – Losing focus of core competence
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Controlled Growth Controlled Growth – Incremental growth steps – Centralize new acquisition before more growth – Advantages: Avoids pendulum effect Remain centralized organization Follow good growth direction – Disadvantages: Not fully exploiting expansion opportunities Dwarfed in their industry
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Conclusion Initially, Torstar followed the controlled growth. Currently, Torstar approaching Greiner’s Model. The controlled growth is a good growth strategy and it should receive some credit for Torstar’s survival.
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