8.3 The Three C’s Mindset of Vulnerability Complacency Conservatism Conceit

Question 1

Why do organizations become vulnerable to competition and market changes.

Answer 1

Common reasons for vulnerability include the three C’s: complacency, conservatism, and conceit.

Question 2

What does Complacency describe?

Answer 2

Those individuals (either management or line employees) who are satisfied with the status quo. Such individuals do not see a need for change and do not feel that the effort to implement change is worth it.

Question 3

What does Conservatism describe?

Answer 3

Management and others who safeguard resources for the sake of reserving them. Often, individuals with a conservative attitude are loyal to earlier or “traditional” ways of doing things.

Question 4

Conceit” refers to?

Answer 4

management who suffer from excessive pride or self-confidence, whether that is focused on the organization and/or themselves. Instead of demonstrating an attitude of curiosity and desire to learn more about the organization and industry, these individuals believe that their current approach is the best way of doing things and see no need to change.

Question 5

When management feels that they are satisfied with the status quo and sees no need for change, which of the three C’s “mindset of vulnerability” are they exhibiting?

Complacency
Conceit
Conservatism
Confidence

Answer 5

Complacency

Question 6

Which of the three C’s mindset of vulnerability usually leaves the organization surprised when the market changes and the organization is unprepared to compete in the new environment?

Confidence
Conceit
Complacency
Conservatism

Answer 6

Conceit

Question 7

Organizations become vulnerable to competition and market changes due to the three C’s - complacency, conservatism, and conceit. Which of the following is an accurate definition of conservatism?

Safeguarding resources for the sake of reserving them
Being satisfied with the status quo
Suffering from hubris, either focused on the organization or the individual
All of these
None of these

Answer 7

Safeguarding resources for the sake of reserving them

Question 8

Which of the following is an input to the corporate culture?

Feedback from society
Behavior of the firm
Image
Strategies

Answer 8

Feedback from society

Question 9

True or False: Organizational change only affects structures and processes, not the corporate culture.

Answer 9

False
Organizational change must include not only changing structures and processes, but changing the corporate culture as well.