Successful Businesses Focus On Three Economic Tasks - Managing Business Effectively

 

Source: Alexandria Small Business Development

There are many successful businesses as well as not very good businesses. What successful businesses are doing to deliver results? The answer lies in the economic tasks confronting the business. Every day, executives will get dozens or more problems all clamoring for their attention.

But how do they know what is important? To tackle these tasks, they must have a good understanding of business reality. Here is a summary of the situations most likely to be found in any business by Peter Drucker.

Both results and resources exist outside the business.

Results are not dependent on anybody within the business and not within the control of the business. They depend on somebody outside: the customer in a market economy, the political authorities in a controlled economy. The same is true for knowledge.

Knowledge is not considered a business resource. It is a universal social resource that cannot be kept a secret for any length of time. Business can be defined as a process that converts an outside resource, namely knowledge, into outside results, namely economic values. Read More...