Blog #3

Both articles for this week focused on ways organizations can succeed, as well as fail, when they are trying to grow their reach. I have spent my career mainly in the non-profit and higher education sectors, so acquisitions and mergers, and large product portfolios are not as common as in the for-profit market.

My partner works for PPG Industries and has been considered "essential" throughout the pandemic (as the feasibility of making paint coatings in our kitchen seems low.) While other companies in the paint and coatings sector have pivoted their operations to making hand sanitizers and soap, PPG has decided to continue with business as usual. They are thinking more long-term in that they have an understanding of what they do well and what will last the tests of time for them. Even though PPG is no stranger to adjusting strategy in their model to move from glass to paint, it is clear that they are mastering the coherence test.

People and other companies are still buying paint now: individuals to fix up their homes and complete DIY projects, as well as businesses to paint cars, airplanes, tractors, and motorcycles with the coatings my fiance works on. When PPG made its switch from glass, they did not "stubbornly stay the course" and avoided one of the seven ways to fail by finding the markets that they excel in, which includes coatings, powder, aerospace, and even optical products.

PPG is not the perfect example of success during the pandemic. Competitors like Sherwin-Williams have not only bounced back from losses, but their stock has completely rebounded back to where it was steadily 6 months ago. PPG is, however, continuing their production with safety precautions in place and ultimately is benefiting from sticking to what they do best.


References:
https://hbr.org/2010/06/the-coherence-premium
https://hbr.org/2008/09/seven-ways-to-fail-big
https://www.post-gazette.com/business/pittsburgh-company-news/2020/04/16/PPG-COVID-19-impact-China-coatings-virtual-meeting-auto-paint/stories/202004160148