All of the characteristics previously stated require certain levels of balance to be successful. Too much or too little of one or the other causes problems to occur.

For example, the cryptocurrency company, FTX, although starting very strong, quickly declined and eventually filed for bankruptcy just three years after its inception (Reiff, 2024). The company’s downfall was caused by too much of the ‘why not’ mentality. Sam Bankman-Fried, one of FTX’s founders, did not have proper risk management strategies in place and ultimately went too far. Concerns started to circulate about unethical transfers of client funds and significant holdings in FTX’s own token, causing many customers to withdraw,

eventually leading to the company’s inability to maintain itself and eventually file for bankruptcy (Bratcher, 2023).

Another example is Blockbuster, a media company that rented DVDs, which ultimately failed because its leadership lacked the strategic thinking to adapt to the rapidly evolving digital media market. By choosing not to change their approach, they put their company at risk of being surpassed by other media companies that chose to embrace technology and take advantage of it such as Netflix (Ash, 2020).