InSeason Inc. started a chain of organic supermarkets that had initial success. The managers achieved a mastery of the firm's current environment, thereby filling a need in the market. However, InSeason defined and measured it success by financial metrics, with a focus on short-term performance. As a result, the firm put in place metrics and systems to accommodate and manage increasing firm size due to continued success. As a result of this tightly coupled system, InSeason developed a
A) resistance to change.
B) innovative approach.
C) significant value gap.
D) holacratic system.

Question

Quizplus · Accepted Answer

Success in the current environment can lead to a firm's downfall in the future, when the tightly coupled system of strategy and structure experiences internal or external shifts. First, the managers achieve a mastery of the firm's current environment. Second, the firm often defines and measures success by financial metrics, with a focus on short-term performance. Third, the firm puts in place metrics and systems to accommodate and manage increasing firm size due to continued success. Finally, as a result of a tightly coupled system, organizational inertia sets in-and with it, resistance to change.