The Theory of the Business Essay
The Theory of the Business
“The Theory of the Business” implies several studies conducted by in the defined area of business environment. Actually, the article is devoted to managerial problems and thus provides overview of the following topics: how to integrate the work and ensure its renewal, leadership functions and skills, new dimension of product design, how to extend profits without diversifying production lines; the benefits of knowledge-based business, etc. it is necessary to outline that the article is important for contemporary management, because it contributes its development by providing new approaches and measures to be used for better company’s performance in the market.
Peter Drucker argues that current businesses of successful organizations fail to work, because their theory of business doesn’t work any longer. Thus the author emphasizes the importance of business theory in strategy formulation and implementation. Companies should thoroughly check their assumptions as to principles organization based on. The article suggests that company has to re-shape its behavior, to dictate its decision about the “right” and “wrong” things as well as to define desired outcomes.
All these elements are the core issues of the theory of business. Actually, theory plays crucial role in company’s performance, because it explains the key elements of success of such companies as IBN and General Motors. Peter Drucker says that “some theories of the business are so powerful that they last for a long time”. Thus the author re-thinks business theory and provides new ideas and suggestions. He states that every theory becomes obsolete with time and thus required thorough re-thinking.
It is necessary to say that “The Theory of the Business” is a coherent, well-organized and thesis-driven work aimed at outlining the necessity of theory re-thinking. The author successfully examines the most interested areas of business environment as well as provides relevant conclusions, suggestions and recommendations.
Drucker, Peter. (1994, September 1).The Theory of the Business. Harvard Business Review Article.