Modern day business organizations are a result of evolution that took place for more than 1000 years. However, most of the organizations did not live long to experience the whole evolution process. Some organizations such as Stora of Sweden and Sumitomo of Japan have lived to see the light of the 21^st century. These organizations have survived by offering the right goods and services to the customers at the right price. But offering the right goods and services at right prices are not the only reasons behind their success. There is something more. According to Arie de Geus, Group Planning Coordinator, Shell, "living companies have the personality that allows them to evolve harmoniously. They know who they are, understand how they fit into the world, value new ideas and new people, and husband their money in a way that allows them to govern their future."

Compare these two companies with the East India Company (EIC) which lasted for only 275 years. Stora came into being in 1288. EIC was formed in 1599 to do trade with the East Indies in spices. The very foundation of EIC was based on exploiting the lucrative spice trade in the East Indies. The tenth voyage of the EIC in 1611, earned a return of 148% to the shareholders on the capital invested by them. All the laws, by laws and orders laid down by the founding members of the EIC point that the main objective of EIC was to maximize profits (See: The East India Company: Organization Structure, Control and Governance, Effective Executive, November 2003).

The sole objective of the EIC was to produce maximum results with minimum resource; that too for the small inner group of managers and investors. Concentration of power was confined to the London House and to the Presidencies. Certain influential directors and their stooges came to possess large blocks of stocks.

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