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The "Boiled Frog Phenomenon"

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What is the "boiled frog phenomenon"? How does it apply to business and, particularly, strategic management? Do some research to find a business example of a situation where this has occurred. What could the business have done to avoid the effects of the phenomenon?

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The phenomenon is this: if you drop a frog in a pot of boiling water, it will of course frantically try to clamber out. But if you place it gently in a pot of tepid water and turn the heat on low, it will float there quite placidly. As the water gradually heats up, the frog will sink into a tranquil stupor, exactly like one of us in a hot bath, and it will allow itself to be boiled to death.

Source: http://blogs.salon.com/0002007/2004/02/06.html

Explanation of phenomenon:

So, why didn't the frog jump out? There was nothing between him and his freedom. The frog didn't jump because his threat sensing ability is triggered by sudden changes, not slow, gradual ones. The threat to his survival was below his ability to detect it.

Source: http://www.employmenttimesonline.com/career_advisor/article.php?ID=530

The implication of this phenomenon for companies is that ...

Solution Summary

This solution discusses the boiled frog phenomenon and how it relates to business threats, with examples, in 587 words with references.