What happened, according to Rice University professor Scott Sonenshein, is that Stroh’s was a “chaser.” As Sonenshein explains in a new book, Stretch: Unlock the Power of Less and Achieve More Than You Ever Imagined, a chaser is a person or company that is constantly chasing more and more resources. In the case of Stroh’s, chasing meant growing ever larger through serial acquisitions, until the company finally crumbled under its own weight.
The opposite of chasing is “stretching”: those who know how to do more with less. During the same period that Stroh’s was on its growth binge, a small company named Yuengling, which had a fraction of the resources that Stroh’s had, was using its limited resources to carefully and incrementally increase its capacity and its market reach. Eventually, the former beer giant Stroh’s would be liquidated, while Yuengling would become America’s largest domestically owned beer company.
According to Sonenshein, stretchers have a completely different mindset and different behaviors than chasers. Instead of constantly undervaluing or squandering their resources, stretchers recognize the value of what they have and act accordingly. For example, Sonenshein tells the story of a store manager stuck with a shipment of poorly made dresses that were not selling. Instead of putting them in the trash, the manager, Ethan Peters, cut off the straps and sold them as “beach cover-ups.” Click here to continue reading this review.