Boiled Frog Phenomenon

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“Boiled Frog" Phenomenon Student’s Name: Institution Affiliation: “Boiled Frog" Phenomenon A ccientist placed a living frog in container with cold water on a stove and slowly increased the flame beneath the container. The frog remained in the water as the water temperature approached boiling point. The frog did not realize the water was getting too hot until it was too late to leap out. Had the frog not adapted to the water, it could have escaped death. The tendency of the frog to adapt to the increase in water temperature cost it its life (Pollard, 2004). This metaphor is used by business entities to show how threats to their future occur gradually leading to closure. Mechanisms to identify potential threats are insufficient in most businesses and if noticeable the ability to adapt to such threats is significant to the long term profitability of businesses. In the 20th century, large businesses increasingly embraced strategic management. The senior most executives drew up strategies in line with their business’ goals which were then communicated down the organization’s management structure for implementation. At corporate level, strategies were drawn up towards decision on business growth, competition resource allocation etc. However, strategic management is applied in assisting a company to realize and react to changes in their business environment such as stock market fluctuations, technology advances, public criticism, accidents and natural disasters. In many incidences, changes in business environment which are obvious are not detected early enough, and such businesses suffer the boiled frog phenomenon (Pollard, 2004). Enron is an example of the boiled frog phenomenon. The gradual erosion of the company’s top CEO professional ethics eventually came to light after an Enron employee made revelations to this effect
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