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This is a chapter taken from the book creative design. The chapter shows how the perceptions of individuals on some of the oldest companies drive them to making irrational investment decisions that are baseless. According to the author, it is notable that the companies that are listed in the stock exchange which has survived long years are more likely to attract investors whereas these companies may not even be good investment destinations as they do not have a capacity to make profits. In contrast, companies that are new entrants in the stock market, and which have great potential for growth and profitability are not as popular among the investors, simply because investors have the perception of longevity and continuity in the older companies, something that is not an element in the new entrants. Unfortunately, these companies and corporations lack flexibility and due to the culture lock-ins that the corporations have built around, they fail to attain the success that is expected of them. Innovation and maneuverability are the most important in business and not perceptions of continuity and discontinuity as has been previously. The articles’ main role is to show company executives that to remain market leaders they must ready to make innovations and welcome change in all aspects.

Inertia is the Enemy

According to this article by Paul Calthrop, there are different factors that determine the continuity of companies in stocks. He gives an example that indicates that companies that were leading in S&P/ASX100 in 2000, most of them are no longer listed there, some of which crumbled and suffered takeovers while some are simply no longer good performers. He indicates that business is dynamic, and this is exactly what is shown by this disappearance of companies as they no longer can keep up with the trend of doing business. According to the article, there are some major mechanisms of ensuring that a company remains competitive, which include the ability of a company to adapt to changes and also to include innovativeness in the company. Calthrop gives the example of innovativeness in Colgate and how this has helped the company to reduce revenues and keep the company afloat and competitive. The importance of this article is to show that innovation and decreasing the marginal cost of a product in an organization has a potential of ensuring that the remains at a competitive advantage against others which are not prone to dynamism and change.

Structure and Pattern Integrity

This article is rather confusing to an individual who does not understand exactly what the intensions of the author. However, it is also quite cleverly made and used to explain the simple concepts in a metaphorical way; this is what makes it interesting. It is discernible from the article that the structure of corporations and the climate of doing business in these organizations is not tangible although the working of the corporations and business has tangible outcomes. The business is seen like the necklace where the structure will collapse if there is no force holding the foundations of the structure together. Note that in this case, integrity is the intangible force that holds the structure of the business together in rigidity. There is a point that is seen in the article where the teacher indicates that the material of experiment do not change although the orientation in the structure has different outcomes and a determination of whether the structure will hold. In the same way, the doability of business does not change although there are factors of business those changes. This determines the direction that the business will take. This means that for a business to be successful integrity is upheld in true and ingenuity rather than following a code which is susceptible to being overlooked.

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