Essay Questions

According to Jim Collins, what two vital ideas take a corporation from good to great?

In his book Good to Great, Jim Collins highlights several concepts that elevate the company from good to greatness. Management is identified as the first concept that determines the success of a company. Excellent leaders are a competitive advantage for the corporation because they know how to utilize their talents to take the company to greater heights of success. Secondly, the workers’ discipline is vital in taking the company from good to greatness. Disciplined employees are dedicated to giving their best to the company. Therefore, good leadership and employee discipline are the two vital concepts that can elevate the company to greatness.

What is the significance of disrupters to companies?

The author explains that a company cannot claim to be successful if it only sails on smooth waters. The business world is dynamic and at times, there are obstacles that the company has to withstand for it to move to higher levels of success. Jim Collins describes disrupters as the company critics who challenge it more often. Management should not ignore critics because their assessment is what makes the company withstand strong waves such as the financial crisis. Therefore, the company should view disrupters from a positive note and learn how to navigate through difficult times.

What is the significance of diversification in business as narrated by Jim Collins?

The business environment is very competitive and it requires corporations to explore various markets to reduce their operational risks. Diversification is simply operating alternative businesses to support those which might slow down in the market due to unseen business risks. Diversification also helps the company to fight competition because of the possible multiple lines of revenue. A good example from the book is that the Abbott Company diversified its operations to eliminate the competition from Merck.