A stitch in time saves nine: behind every major business failure lies an untold story

Purpose – While formulating strategy, managers may commit a series of small and unwitting mistakes the consequences of which accumulate and lead to a big business failure, the type that usually gets a lot of attention from press. These mistakes are akin to committing unforced errors in sport, which a champion player or champion team never makes. This paper suggests a way to avoid such unforced errors. Design/methodology/approach – The paper uses case methodology to highlight how a series of unwitting mistakes committed during the process of strategic planning, cost a multinational engineering firm dearly in a competitive and value conscious emerging market Findings – Strategic risks are dynamic and ever changing in nature, which can be best understood by analysing the relationship between causal factors behind the risk and their origins. The causal factors originate from certain major social and technology drivers that continue to shape our society since advent of industrial revolution. The key lies in understanding the historic nature of driver‐factor relationship and how they give rise to a particular strategic risk. Practical implications – The driver‐factor analysis can also improve strategic agility over a period of time. When the insights gained from driver‐factor relationship is applied in the strategy formulation process using the balanced scorecard or any other conventional strategic planning tool, it can lead to a better goal and task formulation, which in turn can lead to better strategy execution. Originality/value – This paper adapts an evolutionary approach to provide a deeper and better understanding of strategic risks