Question

Explain in detail how operating in equilibrium prevented a company from successfully implementing business transformation there by causing its demise. and also explain the below listed 3 types of state equilibrium in detail separately in terms organization change and development.

the state equilibrium sometimes results in

• Difficulty in change management
• Inhibition to take risk
• Lack of innovation
• Lack of business Diversification thoughts and analysis

Answer 1

Operating in equilibrium means making your business operate in such a manner where you are in a constant rate having a demand and supply as regular and no changes external or internal is affecting your business anyhow. Although, a business is not able to transform or diversify itself operating in only this situation. One has to adapt itself and bear the changes happening in and out in the form of transformation and the diversification of the business. Thus, any business operating in equilibrium would eventually prevent that organisation to successfully implement all the strategic policies and activities to survive in the dynamic market which everlast changes and thus would fall into demise.

The state equilibrium could sometimes results in:

• Difficulty in change management: It's an obvious fact that staying in the constant position for your organisation wouldn't let your business be adaptable and flexible to adapt to changes happening in and out of the organisation and thus would effectively in this changing environment like this situation of covid-19.
• Inhibition to take risk: Again, if your organisation is not operating in a changing environment and working in a constant rate, you won't be able to adjust yourself with the risk factors associated. The risk would eventually act as a surprising factors for your organisation and would probably make your business fail for its operations anyhow.
• Lack of innovation: Change creates innovation. Innovation doesn't come with stable market conditions or equilibrium. Innovation comes to tackle the changing market demand and strategies to make your business establish itself above in the industry. Thus, it is important for an organisation to embrace the changes for its growth and sustainability.