Main focus in the article is about company business would change in its life time.  According to Donald Sull from Harvard Business Review, the author of “Why Good Companies Go Bad,” he indicates the major reputation companies would turn into an inertia model.   A projectile model shows that business goes up and down at certain point.  The major changes are caused by the company managers’ vision of their businesses among the competitors.  Although most companies stand in good business relationship with their client, supply providers, and employees; at some point the companies shifting their business in certain way that possible to failure.  In the article, Sull gives some example of companies such as Firestone, Laura Ashley, Bank One, and etc.  Some companies changed due to their products were outdated, and some changed because of the way operating business. 

     In brief, Sull emphasizes that business operation would be like an inertia.  The three main companies in the article that fall under this situation are Firestone, Laura Ashley, and Bank One.  When Firestone had good reputation in making tire for automobile, and their big client was Ford.  After while, another European company Michelin produced better products; however Firestone managers didn’t see problems in the United States market.  Apparently, Firestone lost the competition over Michelin with radial tires because the products provide better usage.  Laura Ashley was major apparel in the United Kingdom, after the company expanded and fell out because their products were outdated.  English and women around the world would find modern apparel to fit with their environment better over Laura Ashley traditional English.  Other company likes Bank One provided local banking managers with entrepreneur option, where the company was moving up; until the company changed their way of operating business such as centralizing the company.  The business went down to drain; besides, other competitors had the opportunities to win the marketing battles.

        The four main focus during the company business shifting, Sull indicates,” Strategic Frames, Processes, Relationships, and Values.  These are standing for, “Binders, Routines, Shackles, and Dogmas”; these strategies must be used during the process of business changes.  The purpose of the article, Sull wants to send a message to business managers that no matter how good their companies standing in business, at some point the business would fail.  In the reality, most companies would sell their business to their competitors’ cause of poor executive management vision in shifting business.  These companies such as Electronic Data System (EDS), America West Airlines, Packard Bell, Compaq, and others are the example. 

 Work Cite:

Sull, Donald N. “Why Good Companies Go Bad.”  Harvard Business Review, July – August 1999. Page 42 – 52.