Theory of the Business: A Clear Focus on Your Core Mission

Written by Peter F. Drucker

Narrated by Deaver Brown

The Theory of the Business

This audio book was created based on Peter Drucker's long business, consulting, and writing career. He focuses on what to do, what not to do, and how to keep a clear corporate identity and mission. He addresses how all organizations eventually go obsolete and their theory of their business no longer works. It addresses how GM did not move from income based to lifestyle based marketing for their cars, thus hastening their demise after 7 decades of success betting on incomes only. He also points out, though, that the GM theory of the business still worked for Hughes and EDS, which GM bought. He describes how organizations must choose how to do things. This, he says, is why IBM was paralyzed by the different requirements of a PC versus Mainframe business. He states there are 4 specifications for a valid theory of a business: assumptions must fit reality; these assumptions about the environment, mission, and core competencies must fit together, the entire organization must know and understand the theory of the business and act accordingly, and the theory of the business must be tested constantly to be kept up to date. When testing the theory of the business, three things must be done if there is an issue: preventive care, early diagnosis before the problem becomes fatal, and applying the cure. This is a must read for all managers and entrepreneurs in all types of organizations, from nonprofit, educational, government, to companies.

Keywords: Drucker, corporate identity, mission, focus, GM, IBM, Hughes, EDS, Obsolescence, business, entrepreneur, management, nonprofit, assumptions, organization, lifestyle, marketing, environment, society, mission, core, competency, executives.

• Language: English
• Publisher: Simply Magazine Inc. Audio
• Release date: Oct 5, 2010
• ISBN: 9781614961222

Peter F. Drucker

Peter F. Drucker is considered the most influential management thinker ever. The author of more than twenty-five books, his ideas have had an enormous impact on shaping the modern corporation. Drucker passed away in 2005.