It's a long comment so I'm breaking to a second reply.
A horizontal company to a hierarchical one is akin to a group of amoeba compared to an animal.
As a group of amoeba grow, it simply splits into multiple groups. An animal will grow very big, much bigger than any single group of amoeba, but it is vulnerable. Stab it and it dies; once the central nervous system is dead, all other cells will die off eventually. You can't stab a group of amoeba. To kill amoeba you have to kill every single individual one.
Large companies today are much more likely to make mergers and acquisitions than to make divestments. Divestments are only made when a group within the company appears to be unlike any other. I think horizontal companies are more likely than large companies to make divestments. The only other horizontal company I know of, Semco, is an example that is evidence supporting this; it is a company controlled only by employees. At times it has split off its services as separate companies, with the separated companies remaining horizontal, and most of them are very profitable.
A horizontal company to a hierarchical one is akin to a group of amoeba compared to an animal.
As a group of amoeba grow, it simply splits into multiple groups. An animal will grow very big, much bigger than any single group of amoeba, but it is vulnerable. Stab it and it dies; once the central nervous system is dead, all other cells will die off eventually. You can't stab a group of amoeba. To kill amoeba you have to kill every single individual one.
Large companies today are much more likely to make mergers and acquisitions than to make divestments. Divestments are only made when a group within the company appears to be unlike any other. I think horizontal companies are more likely than large companies to make divestments. The only other horizontal company I know of, Semco, is an example that is evidence supporting this; it is a company controlled only by employees. At times it has split off its services as separate companies, with the separated companies remaining horizontal, and most of them are very profitable.
http://en.wikipedia.org/wiki/Ricardo_Semler#Semco_1990.E2.80...