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The Decline of Large Brazilian Companies


  • Alexandre Pavan Torres

    () (Universidade Federal de Santa Catarina)

  • Emílio Araujo Menezes

    () (Universidade Federal de Santa Catarina)

  • Fernando A. Ribeiro Serra

    () (Universidade do Sul de Santa Catarina)

  • Manuel Portugal Ferreira

    () (Instituto Politécnico de Leiria)


This article focuses on the organizational decline and, more specifically, the evolution of a selected group of Brazilian companies that were included in the Largest and Best ranking of Exame magazine in the period between 1974 and 2006. Our descriptive analysis shows two main effects: firstly a high rate of decline among the largest Brazilian enterprises and secondly, that there is an acceleration of the decline process, that is: the companies have become gradually less capable of maintaining a superior level of competitiveness during an extended period of time. The study of the strategy, as a discipline, that seeks to understand and aid companies to capture and sustain a competitive advantage shall be reinforced by the understanding of the causes of unsuccessfulness and the loss of their ability to sustain competitiveness. Organizational Decline is, in this context, a process that warrants further analysis.

Suggested Citation

  • Alexandre Pavan Torres & Emílio Araujo Menezes & Fernando A. Ribeiro Serra & Manuel Portugal Ferreira, 2010. "The Decline of Large Brazilian Companies," Working Papers 57, globADVANTAGE, Polytechnic Institute of Leiria.
  • Handle: RePEc:pil:wpaper:57

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    References listed on IDEAS

    1. McKinley, William & Ponemon, Lawrence A. & Schick, Allen G., 1996. "Auditors' perceptions of client firms: The stigma of decline and the stigma of growth," Accounting, Organizations and Society, Elsevier, vol. 21(2-3), pages 193-213.
    2. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    3. Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090, January.
    4. Castrogiovanni, Gary J. & Bruton, Garry D., 2000. "Business Turnaround Processes Following Acquisitions: Reconsidering the Role of Retrenchment," Journal of Business Research, Elsevier, vol. 48(1), pages 25-34, April.
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    Cited by:

    1. Fernando A. Ribeiro Serra & Martinho Ribeiro Almeida & Manuel Portugal Ferreira, 2012. "Organizational decline: A yet largely neglected topic in organizational studies," Working Papers 88, globADVANTAGE, Polytechnic Institute of Leiria.

    More about this item


    organizational decline; Brazil; strategy;

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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