Pankaj Ghemawat, "Commitment," The McKinsey Quarterly 1992, no. 3: 121-137.
An interview with Pankaj Ghemawat of Havard Business School on new directions in strategic thinking. By Partha P. Bose, with commentary by Richard Foster, Wilhelm Rall, and John Stuckey.
Companies often make strategic decisions without really looking at the difficulty of reversing them or at the constraints they impose on future options. It is this tendency for the effects of some strategic choices to persist over time that Pankaj Ghemawat refers to as commitment. In this interview, Ghemawat talks about how commitment manifests itself and how it needs to be reckoned with in critical decisions about, for example, market entry or exit, horizontal or vertical integration, and capacity expansion.
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