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Paying attention to the Changing Business Environment

The "boiled frog" phenomenon is a business term of significance to business in general and to strategic management in particular.

1. Based on your research, please describe how this phenomenon applies to business and particularly to strategic management?
2. Share a specific business/company example; discuss the particular situation where the Boiled Frog phenomenon occurred.
3. What reason(s) do you attribute this particular phenomenon to?
4. What could the business have done to avoid the effects of the phenomenon?

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The boiled frog phenomenon focuses on adaptation. However, this does not imply that adaptation is necessarily positive. Just as the frog slowly adapts to the increasing water temperature, until it reaches the boiling point, businesses can adapt to increasing pressures and negative influences. However, like the frog, eventually the business will adapt so much it fails to recognize it is doomed to fail. Adaptation occurs for many reasons. The external competitive environment, the internal culture, and other forces cause change that managers are often fail to take notice of. For an organization to maintain profitability or to achieve its goals, it must maintain focus and develop a sound strategy.
Strategic management is a concept of planning activities and processes within an organization, so that it can stay on track, in achieving its objectives. If an organization fails to recognize and respond to rapid changes in the competitive environment, it is unlikely a strategic plan exists to address the rapid changes in the business environment. Like the frog that ignores the increasing water temperature, the ...

Solution Summary

The discussion focuses on how a business can maintain its competitive edge, by paying attention to changing business environments and developing strategies to address new challenges. The example shows why making assumptions about the current business environment is not a sound strategy to maintain profitability.