MGT-2010 Chapter Notes - Chapter 10: Hubris, Advertising Campaign, Disruptive Innovation
24 Dec 2015
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Stage 1: hubris born of success: when a company develops hubris (arrogance) and its employees forget about the factors that created the success and attribute the success to themselves instead. Stage 3: denial of risk and peril: internal warning signs increase, but managers ignore them. Put a positive spin on ambiguous data. Stage 4: grasping for salvation: difficulties from stage 3 put the company into a sharp decline, managers grasp for salvation (make desperate leaps) to try and find something that could help them get out of decline. Stage 5: capitulation to irrelevance or death: the longer an organization is in stage 4, the more likely it is to, company may be sold, allowed to go bankrupt, or become slip into stage 5. insignificant. Companies are beating them with more speed-to-market: some traditional companies may not survive radically innovative strategies change, difficult for an existing successful company to take full advantage of technological breakthroughs (disruptive innovation)
