Strategic Mgmt Unit1

Introduction

The purpose and meaning of boiled frog phenomenon is that it applies to strategic management. According to Cipollone (2005), the boiled frog phenomenon was conceived from put a frog in a pot of water, Cipollone (2005) stated, that if a frog is put into hot or cold water, he will try to jump out of the pot. But, if the frog is placed in lukewarm water he will be comfortable in the pot. This is an example of how management is slow to understand or adapt to the changes within the organization, which will lead to a demise of the company.

The boiled frog phenomenon is often used to describe the behavior of some organizations such as Strategic Management, it is also used a analogy to describe management resisting to changes that are necessary slowly growing business risks and challenges around management. This is what happens with the frog, many managers are afraid to come out of their comfort zone, unless it is necessary, in business, reacting to business issues can lead to the collapse of a company.

Business Example

One example of the Boiled Frog Phenomenon is the fall of Enron, Enron, a major Icon and American energy company. In the 1990’s the CEO of the Enron had several products and plans that would require major funding, at the same time Enron was also going through business issues internationally. The company became financially unstable, in order to resolve a lot of their business and financial issues, Enron tried to implement different strategies, but due to bad investments and partnerships, the company would had numerous losses and their growth slowed down (Zellner et al, 2001 as cited in Chen, F. & Parlar, M , 2007).

Faced with various legal issues against Enron, the company would result to a scandalous fall. In the end many employees of the Enron lost their 401K Funds and their pensions as a result of the fall.

Conclusion

The Boiled frog syndrome should encourage business and organization not to be complacent. It does matter whether...