How the mighty fall

Table of Contents

Introduction1

Five stages of decline2

“Hubris born of success”2

“Undisciplined pursuit of more”3

“Denial of risk and Peril”4

“Gasping for salvation”6

“Capitulation to irrelevance or death”8

The way out9

Good to great frame work10

“disciplined people”10

“disciplined thought”10

“Disciplined action”11

“implementing the change”11

References13

How the mighty fall

Introduction

The book is written by Jim Collins, who describes decline for companies and corporate bodies. The author also defines how firms can re-stand after decline. It determines how a firm falls down from the paramount pinnacle of success to the trenches of failure. He develops the whole procedure of a company going into declining stage, rather than prospering. He entails why firms die, rather than, growing in their own market, and the new markets. He believes that no firm s vulnerable and open to external change unless it thinks and makes a weaker entity out of itself. The author has made a great contribution through his approach towards strategic management of any organization.

Recovering the position

Regard less of how powerful a company is, it is open to decline and enfeeble to downturn. However, as the author explains, some corporation stay at the top pinnacle perpetually. He believes some corporation after having surrendered to the defeat. These companies believe in initiating the change themselves, rather than, handling their destinies to the market circumstances.

The book outlines how companies downfall, and what stages they go through in order to reach to the stage of relinquish. The author believes that when you reach the paramount of success, you are already in the path on enfeeblement and downturn. However passing through each stage, you can turn it into a success to your company, a refuge to your revival. The book is about outlining a method of sustenance towards success and growth of the company

Five stages of decline

The author believes that it's easier to fall, then to rise again. The downturn of a company comes through lots of business courses, whereas, the rising occurs by pursuing few particular courses. He believes that decline is a collapse, which is crucial yet difficult to identify in earlier stages. However, it is easy to cure in early stages and vice versa. He outlines five stages of decline:

“Hubris born of success”

It is the initial stage of decline. It implies to believe that all success is meant for the organization, no matter what they do. The key pointers of this stage are as under:

Arrogance: Firms believe that their position is merely due to whom they are, their name and fame make them blind to the fact that success is really earned, rather than destines (Moran,J.W. & Brightman, n.d.).

Overlook the flywheel: their adherence to the joy of self worth goes so extreme that they actually ignore the key flywheel, be it, marketing strategy, human resource or strategic planning. It is overlooked and ignored (Moran,J.W. & Brightman, n.d.).

'Why' becomes 'What': the theory of believing in values and insights is replaced by attributing success to the things a firm does.

Concession of luck factor: when a firm reaches the paramount ...