Built to last by Jim Collins and the hedgehog concept

Organizations (not in the text) that illustrate the hedgehog concept and comparison of the hedgehog concept to preserving the core while stimulating progress 

Hedgehog concept is a metaphorical parable used by Jim Collins to assess companies in respect to performance and track records of sustained excellence while comparing with other competing organizations. The concept is an understanding of what the company can be best at rather than the goal or intention to be the best. According to Collins (2016), every company dreams of being the best at something, but only a few have an in-depth understanding of what they can actually be the best at and, consequently, what they cannot be best at. The distinction is quite crucial, and it is the primary comparison between the good to great companies and the competing companies. 

Among the companies that have evolved from good to great companies is Apple Inc. The company has made a continuous progress from its inception to date. Product innovation has become a critical insight into which the company has achieved greatness by realizing its innovative potential to meet consumer needs. The company maintains creativity and new ideas as the driving force for product development. It also invests in its employees through continuous training that promotes product quality and giving solutions to their customer needs. The company has made tremendous efforts in designing, developing, and selling consumer electronics, both hardware, and software, as well as offering online services to meet all consumer needs. 

Apple products have high-quality value, thus attracting more customers to choose their products. The company has made a shift from sales per region to profit per global brand in its respective category. It has reflected the understanding that the key insight to greatness lay in the brands which have gained a global power like its computers and iPhones. The shift from total revenue to profit per product creates a brand of high productivity where the company consistently decides to do what it is passionate about. 

Wal-Mart Inc. has also followed the hedgehog concept in determining what it is best at in its distribution chain and what it cannot be best at. The company opened stores in many parts of the United States and in other parts of the world with a majority stake. The company made a shift to a new advertising strategy and changed its slogan to 'save money and live better' from 'always low prices' which was an old marketing slogan. Large discounts for bulk purchases attracted more customers to its retail stores giving it an advantage over competitors such as Kmart and Sears. Branding and design of all its outlets and changing its logo have a far-fetched positive contribution towards doing what the company is good at. 

The employees of Wal-Mart are the driving force of the company. The company introduced employee benefits when it announced that it is paying a combined bonus to every full and part-time worker. Profitability is shared per product line and per customer visit, which gives morale to put more effort among employees in the company. The company looks for employees with a passion to deliver and give their best to unleash their full potential. 

McDonald's Corporation applies the hedgehog concept by doing what it is best at in providing fast food that meets consumer tastes and preferences. The restaurant offers the best hygienic prepared fast food that leaves customers yearning for more. As a marketing strategy, the company introduced healthier food options such as salads, fruits, fish, milkshakes, and soft drinks to win loyalty from their esteemed customers. Rebranding of the company, increasing menu and introducing self-service with technology and delivery are the strategies used by the company to be the best at providing efficient, fast food at the convenient of every customer. The staff members are the driving force of the company. They have learned how to welcome customers into their premises in such a polite and comforting way. The employees are driven by the morale of seeing customers satisfied with their delicious fast food. The employees are more passionate about giving the best service to their employer, thus assisting them in expanding the business locally and internationally with the respective local menu. 

The companies utilize their potential to prove what they are best in, the economic driving force, and the passion that motivates them to do what they were established to do. 

Both the hedgehog and preserving the core concepts put emphasis on need for organizations to exhibit dynamic duality, have a set timeless core, purpose and values that remain ingrained in a company. In addition, the two concepts underscore the essence of continuous improvement, constructive change, innovation and renewal. Preserve the core concept and hedgehog direct their focus on the need to incorporate forward looking operating strategies to adapt to the changing world 

References  

Collins, J. (2016).  Good to Great: Why Some Companies Make the Leap and Others Don't . sInstaread.