Growth based on increasing market demand may mask flaws in a company—flaws that
would be immediately evident in a stable or declining market. A growing flow of revenue
into a highly leveraged corporation can create a large amount of organization slack (unused
resources) that can be used to quickly resolve problems and conflicts between departments
and divisions. Growth also provides a big cushion for turnaround in case a
strategic error is made. Larger firms also have more bargaining power than do small firms
and are more likely to obtain support from key stakeholders in case of difficulty.