Empire building

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Empire building is a business term that refers to a common problem in larger organizations, in which mid-level managers attempt to gather more control and funding in order to make themselves more powerful within the organization. A side-effect of this strategy is an increase in their own salaries. One of the ways to accomplish this is by hiring an excessive number of employees. This sort of behaviour is supposed to be stopped by upper management, but is nevertheless very common.

It also refers to undertaking mergers & acquisitions ("M&A") activity not for legitimate business purposes, but rather to bolster the ego of senior management. By combining their company with others, CEOs build their own corporate empire, often, but not always, to the ultimate detriment of shareholders.

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