"A bigger business is like a cruise ship: There are lots of amenities and you can go a lot further, but it's harder to turn quickly"
About this Quote
This quote by Tony Hsieh, the late CEO of Zappos, provides a metaphorical insight into the characteristics of running a bigger company. By comparing a big business to a cruise liner, he highlights both the advantages and obstacles that included size.
On the favorable side, larger services boast many "facilities", comparable to the diverse facilities and glamorous offerings on a cruise ship. In a company context, these features may include substantial resources like capital, labor force, and infrastructure. Big business can also provide more comprehensive and diversified product and services, access to prominent networks, and established brand recognition. Just as a cruise ship can make long journeys throughout oceans, big businesses have the capability to penetrate numerous markets and sustain operations over the long term. Their size allows them to embark on enthusiastic jobs and reach an international audience, optimizing their capacity for growth and success.
However, Hsieh keeps in mind the downside with the observation that it's "more difficult to turn rapidly". Cruise ships, due to their immense size, have substantial inertia, making them less nimble and adaptable to unexpected modifications in their course. Likewise, big organizations often deal with governmental hurdles that slow decision-making processes and stifle development. Hierarchical structures can impede prompt actions to market shifts and emerging consumer needs. While small business can pivot on a penny, adjusting strategies and executing modifications promptly, bigger business may struggle with the inertia of recognized processes and the requirement to get buy-in from various stakeholders. This lack of agility can be a crucial downside in hectic industries where versatility is crucial to survival and success.
In essence, Hsieh's metaphor stresses the balancing act needed in managing a big service: leveraging its substantial resources and reach while aiming to preserve the flexibility and dexterity usually found in smaller companies.
More details
About the Author