Chapter 8: Acceleration

We have titled this chapter Acceleration for a simple reason. Firm performance is generally measured in terms of revenue or earnings or returns over some time period, for example, annual revenue or quarterly earnings. These per time period performance measures are analogous to our general notion of speed or distance covered per some time period. Therefore growth, which is the change in revenue or earnings per quarter or year or some time period, is analogous to acceleration. Thus, the title.

How well do firms sustain growth? How much growth can a firm handle? How much activity should a firm undertake to sustain its growth goal? These are the questions that are discussed in this concluding chapter and are considered in two parts: Analyzing and Synthesizing.