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Boiled Frog Phenomenon

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What is the "boiled frog phenomenon"? How does it apply to business and, particularly, strategic management? Please provide an example of a situation where this has occurred. What could the company have done to avoid the effects of the phenomenon? Pleaseinclude references and sources.

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Boiled Frog 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 before long, with a smile on its face, it will unresistingly allow itself ...

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