In general in modern economy you are a cog in a wheel.
For example you are an aeronautical engineer. The only place where you can sell your work is at a plane factory.
The factory take your work in others and transforms it into a miracle: a big plane that flies.
Because it is hard to pull miracles , your company is well paid, it becomes bigger and bigger.
But who is at the helm of the he company?
A man who can make costly mistakes, with big effects, and this single point of failure make the whole thing more fragile.
Of course we can take some of the burden of the CEO, and increase the bureaucracy. More middle management, things will be stable but slower.
A firm will grow till it is no longer manageable, it crumbles and it pulls the whole industry.
The best example is VW decision of management to alter the tests, pulled down VW, its suppliers, and stopped it entering into ev market.
Imagine if VW management decide to enter in hybrid market, instead of continuing diesel. No Dieselgate, no losses, a new market created and dominated by VW.
It was a single point of failure and lack of flexibility.
The same happened to Kodak, to Easy India company and many big companies or empires who are a shadow of the former selves.
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