Strategic Management

I asked Prof. Hunter once; If Hamel was saying that a business must always have a new innovative concept, then why is some businesses still practice the traditional ways? Well, Prof. Hunter said that it is costly for a business to keep changing, they only do it when there is a repetitive decline in profits, or the business idea is dieing out. He also said that a business concept starts with someone’s idea, so if some else in the company has a new innovative concept then the other person will usually disagree because he or she thinks the first concept is the best since it is his or hers. Basically there will be many differences in opinion and it would be hard to convince all managers and board of directors on the new innovative concept. Another point which was mentioned was that people do not like change even though it is good for them. After this conversation I was comparing a company with any person I might want to do certain things which my friends and family might disagree of, and this will also stop me from doing it just like a manager wanting to apply a new concept and everyone else disagrees. A person might need to move to a better and closer apartment to work, however he doesn’t because it is too expensive and he is used to his old apartment; this is just like a company which needs to change to an innovative concept but it doesn’t because it is sued to its old practices and it is too expensive to change to a new way.