Peter Drucker addresses this concept well. "What is a business? The financial community still doesn't understand it. I was a securities analyst 70 years ago in London, so I can say that no financial man will ever understand business because financial people think a company makes money. A company makes shoes, and no financial man understands that. They think money is real. Shoes are real. Money is the end result. What is a business? The only function of business is to create customer [value] and to innovate."
When the fundamental beliefs of the society within which commerce operates undergo a change, the context of business changes along with it. The rules of business change, and the same game has to be played with new rules. Nobody is going to teach those rules to you, but if you fail to comply, you go out of the tournament. So you must sense them and learn and adapt as fast as possible. The following are three effective strategies to do this.
- Get your business in tune with cultural differences in your customers
- Set your strategies thinking of a global market, even though all your current business may be local
- Confirm that your products and services cater to one or another kind of universal need
- Fundamental business rules are still applicable
- The phase is one of concentrating business where a number of big companies is decreasing but the number of brands is multiplying
- It is no more possible for those who run a business to separate themselves from their customers
- Consolidate your core competencies
- Build products and processes that have universal appeal
- Offer variety to create differentiation
- Plan ahead for business cycles, streamline your operations, and have quick response time to customer demands