Strategic Learning From Diversification Challenges: McDonald's Productive Failure

Productive Failure
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Strategic Learning from Diversification Challenges: McDonald's Productive Failure
Productive failure refers to the process of organizational learning that arises from failed efforts. The approach deviates from the natural inclination to assign blame and instead prioritizes acquiring knowledge from these incidents to enhance future endeavors (Palmer, Dunford, & Buchanan, 2022). To perceive failure in this manner entails adopting a perspective of a learning organization, wherein occasional mistakes are regarded as an unavoidable aspect of the path toward advancement. The long-term benefits of a productive failure could outweigh those of an unproductive success, where success occurs without clear reasons. Accordingly, McDonald's recognized history includes failures. The opening of their Golden Arch hotels in Switzerland in 2001 was a particularly egregious example of the change process's failure. This endeavor represented a significant deviation from their area of expertise. T...