Leader Analysis

Transitions are an inevitable part of business. Markets change, customer preferences shift, technologies disrupt, and governments impose new rules. The difference between leaders who falter and those who thrive often lies in how they manage these moments of change. The following stories, from different industries, reveal how business leaders navigate transitions, sometimes well, sometimes poorly.

When Change Is Mishandled: Jeep and the Cherokee

Leaders know aspects that are important to the business and should be handled with care in a transition.

“The loss of a midsize SUV like the Cherokee threw a wrench in long-established patterns of car buying, they say: customers who start out with a more affordable, entry-level model will, over time, move into a larger vehicle of the same brand as life changes occur, such as marriage or the birth of a child.”

Sometimes the company is forced to change its direction, and leaders usually need to make a decision on where the company is going to go. An example is Stellantis, which owns the Jeep brand. Faced with penalties for total emissions and the push by governments to move into electric vehicles, the company also faced challenges during the pandemic such as increased costs. They looked for areas to cut, and one decision was to remove the Jeep Cherokee brand from the portfolio.

The result was immediate: dealers thought it was a bad idea, and sales dropped. After going through that period of difficulty, Stellantis is now reintroducing the Cherokee as a hybrid model. This is something they could have done from the start; they didn’t need to completely remove the brand. It was a case where leadership didn’t realize the importance of this particular brand in the portfolio. They did not listen to feedback, nor did they look at data to see the centrality of this brand to overall sales.

North America brings in the most revenue to Stellantis, so leadership should have thought more carefully about how to manage this change. Too often, when there is a need to cut costs or make a change, business leaders act in ways that do not help the company long-term. Leaders need to talk to the right people, especially when there is pushback. At such moments, it is worth stepping back and considering whether the decision is truly the right one.

Decisions require openness to feedback from customers and partners. Leaders must be alert to mistakes, ready to correct them, and willing to adjust direction. Rather than plowing forward regardless of feedback, they should carefully consider market responses and either reverse or refine decisions so they make more sense.

Preparing for Predictable Change: IBM and Quantum Advantage

While Jeep’s story shows how leaders can mishandle a transition, IBM offers an example of how to prepare for one. Transition doesn’t always happen suddenly; sometimes you are caught on the wrong side of it because you haven’t been investing in it long enough.

“By this decade’s end, IBM and its closest competitors should start generating significant revenue from quantum computing, says Mark Horvath, a vice president and analyst at Gartner.”

Many companies did not see the AI revolution coming. Over the last few years, AI has exploded to the point where trillion-dollar companies are being created, providing infrastructure or services related to AI. For example, Cisco’s valuation soared as it provided infrastructure needed for AI data centers.

Even though AI was not foreseen by all, one area that was anticipated is quantum computing. Companies like Microsoft, Google, and IBM have been working for years to develop solutions, hoping to bring quantum computers to the market. This is a lesson for leaders: not all disruptions are unexpected. Some are well known, though difficult to solve. Companies with clear leadership make sure they are not left behind. They invest heavily, knowing that whichever technology wins out, they’ll be better prepared than those that ignored the trend.

For example, Nvidia’s CEO once said quantum computing was decades away, then shifted his stance when Nvidia released its own quantum chip. This shows why effective leaders never ignore disruptions that are known to be coming. They prepare, invest, and keep their companies ready for the change.

When Technology Forces Transition: Media Companies vs. Google

Technology can also force transitions onto companies that depend on old business models. Sometimes a business finds itself in a period of transition, and it’s important for leadership to prepare for the changes that are inevitable.

“With AI Overviews, people find search more helpful and use it more, creating new opportunities for content to be discovered,” Google spokesman José Castañeda said. “Every day, Google sends billions of clicks to sites across the web, and AI Overviews send traffic to a greater diversity of sites. We will defend against these meritless claims.”

AI is transforming how the world accesses information. Different generations use it differently: younger people may treat it like a life counselor, while older ones use it more as a search engine. Whatever the case, AI is becoming the dominant way to access information, and this is reshaping how publishers make money.

Media companies have faced drops in traffic as people access summaries directly through AI rather than visiting sites. Google’s AI Overviews, which present summaries at the top of search results along with links, are at the center of lawsuits. Penske Media—owner of Billboard, Variety, and Vibe—is suing Google, arguing that AI summaries undermine publishers’ revenues.

This shows how content-driven businesses must rethink their models. AI summaries cannot replicate humor, storytelling, or entertainment, which remain essential to human engagement. Leaders in content businesses need to adapt by creating experiences that keep people engaged, not just informed.

The changes now underway will force businesses into transition whether they are ready or not. Leaders must prepare, not only to withstand these changes, but to seize the opportunities they present.

Adapting to Shifting Sentiments: Coca-Cola Abroad

Transitions are not only about technology; they also involve culture and consumer sentiment. Business leaders do not wish to be compelled to change based on market environments, but they are always aware of the risks and prepare their companies to withstand or adapt to them.

“Coca-Cola has been present in Germany for almost 100 years and is its largest drinks company, according to its made-in-Germany brochure. In a podcast ad, it says some of its products—Fanta, an orange soda, and Mezzo Mix, a mixture of orange soda and cola—were even invented there. One of its videos focuses on workers, featuring upbeat testimonials from Jana, Daniel, Mohammed, and Jessy, four employees in its Mannheim plant in Germany’s southwest.”

One of the biggest transformations in the global business environment has been shifting sentiments toward the United States, especially since tariff wars began. In many European countries, surveys show unfavorable views of America, leading to reduced demand for U.S. products. While Tesla saw a notable decline in sales, other brands, like Coca-Cola and McDonald’s, responded differently.

Coca-Cola ran “Made in Germany,” “Made in the UK,” and “Made in Mexico” campaigns to highlight local sourcing and jobs. McDonald’s emphasized that 60% of its ingredients in Germany, and 100% of its beef, milk, and eggs, are locally sourced. These efforts began even before the tariff wars, showing foresight.

The lesson is that major companies anticipate risks. They prepare by positioning themselves locally, mitigating negative sentiment toward “Americanness.” Companies that fail to prepare for shifts in consumer sentiment—like those already caught in China—risk losing ground. Business leaders must always look ahead, anticipate risks, and position their companies to respond favorably.

Defensive Transitions vs. Innovative Transitions: Hain Celestial

Finally, some transitions are forced by weak results and difficult environments. A company sometimes finds itself in a situation where it faces declining demand for its products. Hain Celestial is one such company, known for snacks, seasonings, and teas. Its leaders are restructuring costs to match the economic environment.

For example, they are reducing the number of blends sold from 90 to 55 over two years. These are defensive measures meant to keep the company alive amid falling sales. However, these measures do not seem focused on preparing the company to capture new markets or serve customers better. Instead, they are inward-looking fixes rather than outward-looking innovations.

If customers are not buying a product, it means the product does not meet their needs, or competitors are doing better. A turnaround requires innovation, not just right-sizing. Innovation creates something new that drives future demand.

Being in defensive mode doesn’t mean ignoring customers. Whether times are good or bad, the primary focus of a business must always be serving customers. This mindset should guide leaders in every turnaround effort.

Conclusion: The Leadership Challenge of Transition

The stories of Jeep, IBM, media companies, Coca-Cola, and Hain Celestial highlight one truth: transitions are unavoidable. Sometimes they are forced by governments or technology. Sometimes they emerge from culture, sentiment, or weak performance. But in every case, the task of leadership is the same—recognize the change, listen to feedback, prepare for disruption, and always keep the customer at the center.

Effective leaders manage transitions not by resisting them, but by steering their companies through them in ways that preserve value, capture opportunity, and ensure long-term resilience.