Edit: This question attracted way more interest than I hoped for! I will need some time to go through the comments in the next days, thanks for your efforts everyone. One thing I could grasp from the answers already - it seems to be complicated. There is no one fits all answer.
Under capitalism, it seems companies always need to grow bigger. Why can’t they just say, okay, we have 100 employees and produce a nice product for a specific market and that’s fine?
Or is this only a US megacorp thing where they need to grow to satisfy their shareholders?
Let’s ignore that most of the times the small companies get bought by the large ones.
What resources would you recommend to someone wanting to learn about this?
I.e. the TV channel Arte, which is a cooperation of French and German state media has a multipart documentary called Work, Salary, Profit that touches on a lot of fundamentals.
Of course there is always the option just to straight up read the original works by Marx, Smith and so on, but they are not for the feint of heart.