Empire Building

Empire Building in Political Science is defined as the process of increasing the overall size and scope of the influence and power of an individual or organization. In the world of modern business, Empire Building meaning includes comprehensive steps as well as actions undertaken by an organization or individual for expanding the reach and power.

It is primarily carried out for boosting the profits of a company or individual. In terms of Empire Building for corporations, the main purpose is to improve the overall chances for further growth –ultimately boosting the bottom line.

Meaning of Empire Building

In the corporate era, Empire Building is observed at the intra-company level. In the given scenario, executives and managers tend to be highly concerned with the expansion of the respective business units. They are also concerned with expanding the respective staffing levels along with the overall value of the assets for developing and implementing for benefitting the shareholders.

The process of Empire Building can take place in large-sized public fields wherein corporations can undertake steps for acquiring competitors Offering either upstream or downstream integration. A corporation can consider controlling a large-sized Market share or developing a conglomerate for branching into other industries. It is done to increase the influence of the corporation and the assets under its control.

How does Empire Building Work?

Typically, the process of the Empire Building is observed as unhealthy for organizations. This is because managers tend to become highly concerned with the acquisition of increased resource control in comparison to the optimal allocation of resources.

Prevention of empire building within the ranks of the corporation is achieved through corporate controls that are imposed by either upper-level management or the board of the company. On a large scale, the process of empire building leads to major acquisitions along with other important decisions. However, these do not directly benefit the shareholders, improve the financial health of the organization, or boost the long-term viability of a company.

Empire Building Strategies

Some of the main methods for implementing the Empire Building strategy in an organization include;

1. Acquisitions and Mergers

One of the most common strategies for Empire Building is growth-through-acquisition,

2. Vertical Integration

It is a leading growth strategy for controlling all subsequent parts of any given supply chain –including retail locations, distributors, and suppliers. The strategy turns out to be effective for empire-building as it allows the expansion of leadership as the company maintains its Efficiency.

3. Strategic Alliances

Empires can also be built through strategic alliances. Through the creation of impactful alliances, a company is able to ensure consistent growth in a highly predictable manner.

Empire Building Advantages

Some of the possible empire building advantages include:

• Improved prestige –both for the empire builders and the company
• Maximized promotability and job security –for empire builders
• Potential Economies of Scale, streamlined operators, and cost efficiency –for organizations