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How Companies Can Avoid a Midlife Crisis Case Solution & Answer

According to conventional wisdom, companies and organizations pass through the outlet passages, scaling, maturity and decline. In fact, business opportunities – not corporations – pass through these steps, and most organizations are composed of several possibilities arranged through the various stages of the life cycle. Executives who understand this crucial distinction can see your organization as a portfolio of opportunities that requires constant re-calibration to reconcile the demands of the present with the promise of the future. The authors suggest that in assessing any opportunity portfolio, leaders must be aware of the following common pathologies: wait too long to get out of a business in decline, failing to cannibalize a company that is closed, preventing new promising markets because too cautious fiscal approach, trying to climb too many business opportunities for any of them receives the necessary resources, applying the same management style business opportunities at different stages of the life cycle, and err on the side of loss aversion.
by
Dominic Houlder,
Donald N. Sull
Source: MIT Sloan Management Review
11 pages.
Publication Date: October 1, 2006. Prod #: SMR221-PDF-ENG
How can companies avoid a solution to the crisis of fifty cases

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