Organizations might have a good plan, but other things might go wrong
Organizations might have a good plan,
but other things might go wrong due to uncontrollable variables. Wade (2012) describe
some of these variables as political, economic, societal and technological forces
that will have a negative impact on
business despite having a good plan. I will discuss three organizations that
had a good plan but failed because something went wrong because of things out of their control.
Blockbuster was a video-rental business.
The business was doing fine when video films
were delivered in a form in VHS and DVD. The
video delivery changed from VHS and DVD to online delivery but Blockbuster a
good plan but fail to adapt to the new change (Davila, Epstein, 2014). Due to technological
innovation, video films were was stream
through personal computers, smartphones, smart
TVs Blockbuster retail outlet is struggling, and hundreds of the firm's store are closing down. Companies such
as Netflix, Redbox are taken over the video market from Blockbuster. Netflix now offers
videos cable televisions, phone companies,
and video-on-demand while Redbox is now renting
videos overnight through vending machines of a Dollar (Davila, Epstein, 2014).
Sun Microsystems was building high-end servers and developing Java programming language and became an industry giant
in information Technology in 1990. However, due to the dot.com bust, Sun
Microsystems lost many of its customers. Personal computers become powerful and
cheaper; server are now available in the form of vertical machine and cloud computing is providing servers as infrastructure
as a service, and fewer people will buy expensive servers. Sun Microsystems could
not survive and was sold to Oracle.
Another company that failed due to uncontrollable variables
is Nokia. Nokia was very successful and had
been a market leader in the cell phone
market (Davila, Epstein, 2014). The company produces good durable cell phones
with good sound and camera functions. When smartphones
with touched screen technology became available,
Nokia still stayed with their plan of building durable cell phones. The smartphone
technology became mobile phone technology of choice,
and Nokia lost its market.
The factor affecting good plans very
relevant to consider because they the can influence the success of business. From the above example, the societal and technological forces
affect the organizations such as Nokia, Sun Microsystems,
and Blockbuster. Despite management having good business and strategic plan
other unforeseen circumstances can impact the business negatively. Therefore business plan alone cannot guarantee
success, but it is very important to have a
plan. According to Fairley (2009, a bad plan is better than no plan at all and failure to plan means preparing to fail.
Societal and technological
forces
Societal and technological forces
can innovation idea. A few years ago the idea of robot cars driving themselves, digital
currencies and internet of things and thing which was not possible are possible
now. The world is experiencing a faster pace of social, economic and
technological change that no longer seems impossible It is forecast that by
2020 over 5 billion people will use the internet and about 80 billion of
devices and machines will be connected together to share information. The internet
of things will grow exponentially and will affect business positively and negatively.
The combination of cloud computing technology and internet of things there will
be a new range of technology-enabled
services like as smart lighting, mobile working solutions, and smart device
that will shape the lives of our society.
References:
Davila, T., & Epstein, M. (2014). The innovation
paradox: Why good businesses kill
breakthroughs and how they can change. Berrett-Koehler
Publishers.
Fairley, R. E. (2009). Managing and Leading Software
Projects. Hoboken, NJ: Wiley.
Wade, W. (2012). Scenario
planning: a field guide to the future.
John Wiley & Sons.