Rating: 4 out of 5 stars
4/5
Audiobook44 minutes
Theory of the Business: A Clear Focus on Your Core Mission
Written by Peter F. Drucker
Narrated by Deaver Brown
Rating: 4 out of 5 stars
4/5
()
About this audiobook
The Theory of the Business
This audio book was created based on Peter Drucker's long business, consulting, and writing career. He focuses on what to do, what not to do, and how to keep a clear corporate identity and mission. He addresses how all organizations eventually go obsolete and their theory of their business no longer works. It addresses how GM did not move from income based to lifestyle based marketing for their cars, thus hastening their demise after 7 decades of success betting on incomes only. He also points out, though, that the GM theory of the business still worked for Hughes and EDS, which GM bought. He describes how organizations must choose how to do things. This, he says, is why IBM was paralyzed by the different requirements of a PC versus Mainframe business. He states there are 4 specifications for a valid theory of a business: assumptions must fit reality; these assumptions about the environment, mission, and core competencies must fit together, the entire organization must know and understand the theory of the business and act accordingly, and the theory of the business must be tested constantly to be kept up to date. When testing the theory of the business, three things must be done if there is an issue: preventive care, early diagnosis before the problem becomes fatal, and applying the cure. This is a must read for all managers and entrepreneurs in all types of organizations, from nonprofit, educational, government, to companies.
Keywords: Drucker, corporate identity, mission, focus, GM, IBM, Hughes, EDS, Obsolescence, business, entrepreneur, management, nonprofit, assumptions, organization, lifestyle, marketing, environment, society, mission, core, competency, executives.
This audio book was created based on Peter Drucker's long business, consulting, and writing career. He focuses on what to do, what not to do, and how to keep a clear corporate identity and mission. He addresses how all organizations eventually go obsolete and their theory of their business no longer works. It addresses how GM did not move from income based to lifestyle based marketing for their cars, thus hastening their demise after 7 decades of success betting on incomes only. He also points out, though, that the GM theory of the business still worked for Hughes and EDS, which GM bought. He describes how organizations must choose how to do things. This, he says, is why IBM was paralyzed by the different requirements of a PC versus Mainframe business. He states there are 4 specifications for a valid theory of a business: assumptions must fit reality; these assumptions about the environment, mission, and core competencies must fit together, the entire organization must know and understand the theory of the business and act accordingly, and the theory of the business must be tested constantly to be kept up to date. When testing the theory of the business, three things must be done if there is an issue: preventive care, early diagnosis before the problem becomes fatal, and applying the cure. This is a must read for all managers and entrepreneurs in all types of organizations, from nonprofit, educational, government, to companies.
Keywords: Drucker, corporate identity, mission, focus, GM, IBM, Hughes, EDS, Obsolescence, business, entrepreneur, management, nonprofit, assumptions, organization, lifestyle, marketing, environment, society, mission, core, competency, executives.
Author
Peter F. Drucker
Peter F. Drucker is considered the most influential management thinker ever. The author of more than twenty-five books, his ideas have had an enormous impact on shaping the modern corporation. Drucker passed away in 2005.
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Reviews for Theory of the Business
Rating: 4.18421047368421 out of 5 stars
4/5
57 ratings2 reviews
- Rating: 5 out of 5 stars5/5Simple and Very Powerful. Back to basics discipline a a
- Rating: 5 out of 5 stars5/5This book is five stars. Great insight into the "practice" of management, as opposed to theory. I highly recommend to all of Drucker's books.