By recognizing the impact of the external environment, managers can anticipate turbulence and shape the culture accordingly. Organizational managers and leaders face daily challenges arising from both external and internal environments. To navigate environmental turbulence effectively, it is crucial to design an organizational culture that aligns with the industry's dynamics and prepares for potential disruptions. Creating an intentional culture involves aligning values, beliefs, and behavioral norms with the specific demands of the industry. Tools such as vision and mission statements, reward systems, and fostering open communication and collaboration can help shape the desired culture. Additionally, a strong organizational culture that promotes innovation, agility, and continuous learning empowers managers to proactively respond to changes in the external environment. By intentionally designing a culture that embraces flexibility, change, and empowers managers to lead during turbulence, organizations can better navigate through episodes of uncertainty and capitalize on opportunities for growth and success.

Preparing Culture for External Environmental Turbulence

In this talk, Dr. Claude B. Kershner IV explores the hidden dangers of the commodity trap—a cycle that forces entrepreneurs to compete on price, crushes margins, and keeps small businesses from growing. Drawing on the research of Dr. Michael Morris and real-world examples, this session breaks down each element of the trap—no differentiation, low entry barriers, high unit costs, limited capacity, intense competition, labor intensity, and low bargaining power—and shows how they reinforce one another. The discussion then turns to practical solutions: how to create meaningful and sustainable differentiation at the core product, tangible product, augmented product, and communicated product levels. With stories of companies like Enterprise Rent-A-Car, copier firms, bowling alleys, and community entrepreneurs, listeners will learn why competing on price is a dead end and how to become, in Jerry Garcia’s words, “the only ones who do what you do.”

Breaking Out of the Commodity Trap

The Dr. Claude Kershner Show empowers students, professionals, and scholars by offering practical examples of Strategic Entrepreneurship. In a series of teachings, interviews, and stories, we confidently provide evidence-based tactics to take teams and organizations through life cycle transitions.

Breaking Out of the Commodity Trap

The Dr. Claude Kershner Show

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