The phrase “fast growth” conjures up a picture of a high-technology company serving markets that have seemingly inexhaustible appetites for its products. Panting investors and rising stock prices are generally part of the image. A typical example of such a high-growth company is Tandy Corporation, owner of the Radio Shack chain and manufacturer of the TRS-80 microcomputer. At the other end of the growth spectrum are companies whose markets shrink due to declining demand and/or foreign competition and whose stock prices fall. These companies are typified by National Steel Corporation. (National Steel recently formed a holding company and adopted a new corporate name, National Intergroup, Inc.) Exhibit I shows the performances of Tandy and National Steel.

A version of this article appeared in the January 1984 issue of Harvard Business Review.