Question

Though New Ideas Inc. has been in business profitably for 30 years, the company and its employees have seemingly been in a constant state of change. Paul Gill has been president of New Ideas for the last 15 years. During this time, he has had to change the strategic focus of the company three times. The employees have become vocal recently about the decrease in their bonus cheques and are waiting to share in the increased profits. It seems as though his competition is always introducing new products into the market, and the niches Gill thought New Ideas held leadership in are always changing. Recently the government has been active in passing new legislation to increase the control of the product packaging and product contents. The technology used to manufacture the products is constantly improving with the use of robotics to make the process more efficient.

Before Gill took over as president, the previous 15 years had been a period of stability and steady predictable growth for New Ideas. This period was consistent with the ________ metaphor of the change process.
A) calm waters
B) blue horizon
C) situational strategy
D) white-water rapids

Answer 1

Before Gill took over as president, the previous 15 years had been a period of stability and steady predictable growth for New Ideas. This period was consistent with the 'calm waters' metaphor of the change process. Thus (option A) is right answer.

The stable period at New Ideas Inc. aligns with the 'calm waters' metaphor, representing a predictable business environment, contrasting with the 'white-water rapids' of the current turbulent period necessitating ongoing innovation and change.

Step-by-step explanation:

The period before Paul Gill took over as president of New Ideas Inc., which was characterized by stability and steady predictable growth for 15 years, was consistent with the calm waters metaphor of the change process. This metaphor suggests a smooth and largely untroubled business environment where companies can predict and plan for the future with a considerable degree of certainty. Thus (option A) is right answer.

However, the subsequent years under Paul Gill's presidency, with frequent strategic changes, increased competition, and new legislation indicate a shift towards a more turbulent business environment often referred to as white-water rapids, where change is constant and unpredictable.

Companies can earn higher profits by adopting new technologies and innovating, which allow them to produce products more cheaply or with desirable characteristics that appeal to consumers.

As competition increases and technology advances, successful firms understand they must continually innovate to maintain a competitive edge and share in the benefits of above-normal profits, at least temporarily. Investment in human capital and regulatory adjustments can help manage the challenges brought on by such technological and market shifts.