Question

The senior managers of a grocery store chain have a disagreement over the direction of the company. One faction wants to leverage its capabilities and core competencies to take advantage of the opportunities provided by a stronger online presence, including online ordering with both at-store pickup and home delivery. The other faction feels that the company's strengths lie in small, convenient neighborhood stores and the customer service that accompany an in-store shopping experience. The online expansion would be a departure from what the company already knows how to do and would require a significant investment. Those in favor of the changes feel that the potential returns make the investment worthwhile. What concept are those in favor of change struggling against

Answer 1

Answer: d. Core rigidity

Explanation:

Core rigidity refers to the tendency of companies that are successful in the market to become comfortable in their position because they feel their core mode of operations is fine. They will therefore abandon or significantly reduce improvement efforts which usually ends badly because competitors will keep improving.

Those in favor of the change are struggling against a Core Rigidity mindset in the people opposed to the move because those ones want to remain in their current strengths instead of trying to improve operations.