Question: I think managers are surprised by environmental changes because they have horse blinders on, they are stuck in their narrow field of view and only
I think managers are surprised by environmental changes because they have horse blinders on, they are stuck in their narrow field of view and only focus on one aspect of what the companies overall goals are, be it production, marketing, sales etc... So what immediately comes to mind for me is Blockbuster Video. In early 2000 when blockbuster was at their peak they were approached by Netflix, who at the time was still in their infancy, 3 years old, as a company and struggling to get by since the technology they were using(streaming videos) hadn't caught up with society yet. So here we have an internal environmental change of culture and a general environmental change of technology. Well when Netflix sat down with Blockbuster and wanted to merge with them so they could have access to the Blockbuster check book so they could expand, they were told to beat it. This actually happened several times. Well in a few short years, 7 to be exact, when the tech and culture caught up with society people started to rent less and less from in store video places like blockbuster and relied heavily on Netflix. As of 2013 Blockbuster was defunct and Netflix had grown to a multibillion dollar business, which I think it is worth noting that Netflix offered to sell itself to blockbuster for a meager $50 million. So because the management at blockbuster were inadequate at adapting to the technological and cultural changes, in the internal environment and general environment, that were sneaking up on them they lost their chance to own what is now a $5.5 billion dollar company. And lastly the task environment was considered too late in the game. The customers where an oversite, blockbuster eventually tried to adapt their business to what the customer wanted but it was to late and as a result they are now a defunct company
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
