Many of the companies suggest that the firms can move successfully into newer positions. These are found to cause internal changes that would necessitate change. The optimism of such notion is considered to be the “realist” or “processual” school of the business thinkers. The central notions of “zones of manoeuvre” as suggested by Clark (2000) needs to be considered. Zones of manoeuvre are the areas of operation where the companies can comfortably change the ways of operations. In this paradigm, the companies cannot change certain basic default settings. The change would be disastrous for the company. The companies need to factor in the path dependency, analyse the action plan, understand the macro environmental factors and the internal organizational politics to address the issues.
The company Pearson ELT is hoping to change its value chain. This is to change the revenue/profit margins. The big challenge for Pearson company is developing newer capabilities and ensures that the company is able to meet the current demands. They need to factor in a big company to function at the start-up. They need to ensure that the shareholders and stakeholder interest are not impacted by this process. The shareholders is making the mistakes of building a profitable newer business. These are found to change in an uncertain and rapid changing market. In these situation, the companies need to find newer ways of changing without impacting these important variables in the situation. One of the important changes that the company Pearson ELT and IBM had considered was forming liaisons with other companies to ensure that they meet the objectives.