In the third chapter the point was made that businesses have
two functions, innovation and marketing. By innovating, businesses stay current and
fresh. Jack Welch, former CEO of GE, once said “innovation is a constant thing…If
you do not have an innovative workforce who is excited to come into work every
day, you are dying, waiting to wither away on the vine.” If businesses continue
to do the same thing that made them successful in years past they will fail.
The competition will have a chance to catch up and will learn from their
mistakes. The innovative business will not only learn what to change to
overtake their opponent, they will also change with the market as the demands
of customers change.
Also in this chapter we learned how success can be evaluated
internally. This is to say how profits are measured internally. In this case
the example of a human resources department was used. The success of the
department is dependent on the satisfaction of the customer. If a department is
looking for new employees then they will be relying on the HR department to
provide them what they need. They will likely want the best person for the job
but they also may need to fill the position quickly. In this case the HR
department needs to quickly identify the top candidates to bring in for an interview
and not waste time on too many candidates. Assuming they do a good job, the
department making the hire will be satisfied and this will add to the success
of the HR department. Everyone in a company is involved in a business
regardless of the area you operate in. everyone’s output must result in a
profit, or return on investment. The profit is evaluated by the organization
which your business supports.
Drucker wrote that the first question in
marketing is “What does the other party want?” then we ask “what does it value?”
After this we need to know what their goals are and what does it consider results?
With these questions answered we can determine who the other party is and also
which other parties we can target.
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