Description
Excerpt from Peter Drucker: Nothing may seem simpler or more obvious than to know what a company’s business is. A steel mill makes steel; a railroad runs trains to carry freight and passengers; an insurance company underwrites fire risks; a bank lends money. Actually, “What is our business?” is almost always a difficult question and the right answer is usually anything but obvious.A business is not defined by the company’s name, statutes, or articles of incorporation. It is defined by the want the customer satisfies when she buys a product or a service. To satisfy the customer is the mission and purpose of every business. The question “What is our business?” can, therefore, be answered only by looking at the business from the outside, from the point of view of the customer and the market. What the customer sees, thinks, believes, and wants, at any given time, must be accepted by management as an objective fact and must be taken as seriously as the reports of the salesperson, the tests of the engineer, or the figures of the accountant. And management must make a conscious effort to get answers from the customer herself rather than attempt to read her mind.Question:What obstacles do companies encounter when attempting to define their business, given that the simple question of ‘What is our business?’ is frequently intricate and the correct response is only sometimes evident?400 to 500 words APA format (Please reference the APA video under course content for further information) At least one citation in the body of the writing and reference the article at the end of the post
