The future of the economy can only be created, astonished, terrified, shocked, confounded, and stunned but nobody can predict what it holds at stake. For instance, taking a reflection of the past economic events of an individual clearly justifies the argument that it cannot be defined nor can it be predicted, because he or she has encounter losses rather than profits as expected “life is uncertain, and the future is unknown.” It thus calls for a person to be conversant and to master his or her own fate.
There are many and diverse negative influences and challenges that befalls American economy and the entire world which has brought along the question as to why some companies thrive in uncertainty, even chaos while others are relatively prospering. It simply means that the fact that the future cannot be predicted the leaders has to respond by creating companies that can sustain themselves in vulnerable economical situations and unstable business environments and be able to rise and become great organizations in competitive market share. In comparison to those groups of organization disadvantaged by unfavorable business environment, one would be able to outline the major factors that facilitate companies to thrive in uncertainty (Collins, 2011).
In the research conducted in America, investment of $10000 within a portfolio of around 10x companies and maintaining the organization within limits rates of returns of a general stock market until it enters into the New York stock Exchange. The investment would have a total worth of $6 million and the company’s performance in comparison to the general stock market would be 32 times higher and better. It thus shows that the American economy received unexpected results (Collins, 2011).
Use of the environment and performance served as a major factor to argue the point about the future because there is an existing presumption that the future would always be unpredictable whereas the globe would remain unstable. These also facilitate identification of factors that differentiate great companies, which prevails against harsh environmental conditions. The research outlines that the concept in the text was not destined. This is evident in a situation whereby the 10xer case shows that most of the cases exemplify the concept set before to higher heights than those of comparison cases. It also reveals that the level 5 leadership played a major role in exhibiting the 10xer behavior. That is fanatic and empirical discipline and creativity respectively were observed in the text. Hedgehog concept is simply a project or a concept that intersects passion, the best interest, and disciple of an individual in the world and an element that guides a person’s economic engine to have a smooth flow of understanding (Collins, 2011).
In business context, Fire Bullets, Cannonballs, and Good Small Business Advice explains in details the success of big companies that have risen through innovations. A bullet is a cheap experiment, which every small and medium enterprise (SME) can manage to run. There are calibrated cannonballs that have an influence on companies’ economical success at the end of a financial term. In a research conducted by Jim Collins & Morten T. Hansen reflected that unchecked cannonballs could have a negative effect on a company. According to this study, many of the 10X who were examined were not an assurance of innovation. In addition, some of the examined 10X pairs were less innovative. This was because of environmental effects and location of the business (Collins, 2011).
In addition, the authors expose risks associated with running a company. The author reflects on the ability to manage and account for any conditions. This is because there is no assurance that in market anything can go as expected. 10Xers assist in building market risks absorber that takes 30% of cash that help in maintaining companies financial targets. Symmetric risk, Death Line risk and Uncontrollable risk are a big threat to a company. 10Xers focal point is the company’s aim and therefore, pushes for a plan to amend the conditions. However, the author argues that random changes should call for advance strength in decision-making. The unexpected results of the study reflect that comparison cases took high risk as compared 10X cases. This was a result of self-confident posed by upside potential (Collins, 2011).
Specific, Methodical, and Consistent (SMAC), the more the business environment is changing the more you need to adjust your SMAC. According to SMAC, consist of a workable strategy. SMAC helps management to rectify any error and come up with solutions regarding any challenge that a company might face. This calls for 10X to reflect three distinguishable characters, fanatic discipline, empirical creativity, and productive paranoia. In addition, SMAC recipe can be changed if there is any change that needs to be made with the aim of facilitating quality management. However, there are ways on how to approach SMAC amendments. That is, exercising empirical creativity and exercising productive paranoia. The unexpected result reflected on the need to develop specific agendas that will last for long. The comparison cases changed an average by 60% as compared to 15% in line with areas of analysis (Collins, 2011).
In conclusion, cannonballs contribute to the prosperity of the company within a given economy. In a similar context, business practitioner should expect to encounter either a loss of profit because future is unpredictable and the use of cannonball can lead to either positive or negative impacts. In this study, return on luck (ROL) reflected both sides of luck and the important characteristic of any transaction that might affect business. The results reflected that some companies had extraordinary positive results as compared to others. The fact that there is no assurance of what might unfold within a certain business operation makes it difficult to manage and account for emergence of certain conditions.
Reference:
Collins, J. C., & Hansen, M. T. (2011). Great by choice: Uncertainty, chaos, and luck: why some thrive despite them all. New York, NY: HarperCollins Publishers.
