Read the following article

  

Read the following article “Miner BHP Spurns Bigger Is Better Mantra – WSJ – WSJ.pdf” and address the following questions:1. Why is BHP Billiton now rejecting the bigger-Is-better mantra? If big is not better, why did the firm grow so large in the first place?2. More to the point, how does the firm’s CEO Andrew Mackenzie explain the disadvantages of large size? According to him, where do diseconomies of scale and especially diseconomies of scope come from?3. The firm’s CEO talks a lot about complexity and simplification. Is the lesson to be drawn from BHP Billiton that firms should try to grow to the point where the disadvantages of complexity outweigh the benefits of growth? Or is the lesson more complicated and ambiguous than this?

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