24 February 2008
What Is The Purpose of Business? Solutions for your Management Problems
Your Business Blogger presents a 90 second lesson on the purpose of business. Students: This is not a substitution for class attendance.
But it is always helpful to know what your professor thinks is important…
cross post at Reasoned Audacity.
Script 22 February 2008 What is the Purpose of Business?
Hi, I’m Jack Yoest, Your Business Blogger with Solutions for your Management Problems.
Peter Drucker tells us that the purpose of business is to create a customer and make a profit.
You know that the role of the manager is to Plan, Organize, Lead, Motivate and Control.
This is the manager’s job – to get things done through other people to accomplish the mission of the company.
But in all the job-doing, the manager must know what his business is in business for – someone has to buy what you’re selling – and you must make a buck.
If nobody buys what you have to peddle and you don’t make a profit, the IRS has a nifty word for this category:
It’s called – A Hobby.
A hobby is not the same as a non-profit corporation: A hobby like is a sole-proprietorship with lots of money, effort and hours invested, but no customers and no income.
(I’ve had a number of those “businesses.”)
Business meets needs – and is the organized effort – here’s where the manager comes in — the organized effort – to meet the goals of the company
It doesn’t matter if your business is manufacturing, service or marketing, remember your business must do two things:
Create a customer, make a profit.
I’m Jack Yoest Your Business Blogger
For more Management Help go to Yoest.com
YOEST.COM
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