A business that is the wrong size is a business that does not have the right niche to survive and prosper.

Being the wrong size is a chronic, debilitating, wasting—and a very common—disease. Being the wrong size is curable in the majority of cases. But the cure is neither easy nor pleasant. The symptoms are clear and are always the same. In a business that is the wrong size, there is always one area, activity, function, or effort—or at most a very few—that is out of all proportion and hypertrophied. This area has to be so big, requires so much effort, and imposes so much cost on the business as to make economic performance and results impossible. The old American Motors furnishes the example. American Motors ...

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