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Risk aversion by executives

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Have major corporations been unwilling to adapt to the times and meet competition head on? Are corporate executives better described as risk-averse managers than entrepreneurs willing to take a chance?

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Major corporations have been unwilling to adapt to times and meet competition head on. These corporations are inflexible and do not have the ability to compete head on. The corporations have high overheads that they are not able to reduce them. Their decision making is slow and bureaucratic procedures make them incapable of meeting competition head on. To adapt to the times, major corporations have to change quickly and major corporations find change difficult. Major corporations also avoid meeting competition head on because they have easy options. They use monopoly power and use anti-competitive practices. Some use dumping, some use exclusive dealing agreements, and others use refusal to deal strategies. Major corporations avoid meeting competition head on because they use their strength and size to force out ...

Solution Summary

Avoidance of competition and risk taking are explained in a structured manner in this response. The answer includes references used.