Wednesday, December 24, 2014

Companies Propagating as Plants

Some plants propagate by extending their roots laterally then shooting up stems. The plant actually grows using such method and the growing number of stems are actually interconnected at the ground level through an extensive system of interconnected roots. At first, the budding shoot is dependent on the parent plant for nutrition and support. As the shoot grows, it can becomes less dependent on the parent plant and can survive on its own even if the connection to its parent plant was severed through the roots.

Similarly, in the business world, a company may grow by setting off new ventures in different sectors. The new spin-offs may be dependent at first on the parent company but then grow less dependent with time. They might ultimately reach a point where they are completely independent of the parent company and can survive on their own.