Torstar Corporation Survival by Controlled Growth

1. Torstar CorporationSurvival by Controlled Growth by J. Y. Shen

2. Objective • Organization Growth • Controlled Growth • Torstar’s History • Similarities to Greiner’s Model • Distinction from Greiner’s Model • Torstar’s Controlled Growth • Advantages • Disadvantages • Torstar’s Future

3. Organizational Growth • Greiner’s Model • Growth through creativity  Crisis of leadership • Growth through direction  Crisis of autonomy • Growth through delegation  Crisis of control • Growth through coordination  Crisis of red tape • Growth through collaboration  Crisis of ?

4. Controlled Growth • Restricted growth rate • Despite favorable environment • Incremental growth • Adjust before next step in growth • Find best growth direction • Centralized Management • “Family owned” • Remain in direction stage • Improve core competence

5. Torstar Corporation Newspapers Printing & Distribution Book Publishing Internet & Multimedia

6. Brief History Birth of Evening Star Atkins as publisher Renamed The Star Reach top Establish Torstar Corporation Bought Harlequin Renamed Toronto Star Galloway as CEO Honderich as publisher The Star bought by Trustees Expansion Atkins’ Death Prichard as CEO Atkins’ Charitable Foundation 1892 1948 1976 Present Charitable Gift Act Romance War Newspaper War

7. Torstar Development Eras • Pre-Atkins Era (1892 – 1899) • Birth • Atkins Era (1899 – 1948) • Growth (Creativity and Direction) • Post-Atkins Era (1948 – 1976) • Growth (Direction) • Torstar Era (1976 – present) • Growth (Direction – Delegation)

8. Atkins Era • Growth through creativity • Identify niche • Establish reputation • Attract readers • Smooth transition into Direction Stage • Balance the finances • Monitor the organizational structure • Controlled Growth • Maintain optimal size

9. Post-Atkins Era • Direction Stage • leadership crisis and autonomy crisis • Maintain Status Quo • Growth under Honderich • Maintain core competence • Expand into related fields • Slowly acquired entire Harlequin Enterprises

10. Torstar Era – Honderich Dynasty • Torstar Corporation • Divisional structure • Honderich is CEO and Director • Honderich’s Objectives • Maintain core competence  publisher of Toronto Star • Adjust to the acquisition of Harlequin  Galloway to fight Romance War

11. Torstar Era – Galloway Dynasty • Direction not Delegation Stage • Galloway • Under the Board • Board insist on resisting the convergence trend • Low level of debt and solid core competence • Achievements • Acquire numerous newspapers • Failures • High tech education, internet

12. Torstar Era – Present • Departing from Controlled Growth • Little centralized power at Board level • Shifted into Delegation Stage • Making many new acquisitions, alliances • Growing quickly • Moving towards control crisis • Losing focus of core competence

13. Controlled Growth • Controlled Growth • Incremental growth steps • Centralize new acquisition before more growth • Advantages: • Avoids pendulum effect • Remain centralized organization • Follow good growth direction • Disadvantages: • Not fully exploiting expansion opportunities • Dwarfed in their industry

14. Conclusion • Initially, Torstar followed the controlled growth. • Currently, Torstar approaching Greiner’s Model. • The controlled growth is a good growth strategy and it should receive some credit for Torstar’s survival.