Re: FW: What is the purpose of a commercial firm?

[Bob Clements <clementz@kos.net>]

May I offer some of Drucker's words?

WMack wrote:

> > John Seddon wrote:
> > For example, what is the purpose of any commercial firm?  IMO, it is to
> > get
> > and keep customers.
>

DRUCKER:
Business has only two basic functions--marrketing and innovation.

>
> Mike Tveite replied with an excellent quote, which should be carefully read:
>
> > Deming (TNE, p. 51) states:  "Recommended aim: The aim proposed here
> > for any organization is for everybodyto gain--stockholders, employees,
> > suppliers, customers, community, the environment--over the long term."
>
> First note the use of the word "recommended."  This indicates other
> aims (purposes) exist.  There is not a universal purpose for all
> commercial firms.  It should also be remembered that the purpose
> for many organizations varies, often rapidly.  This is reflected by point
> #1 of Dr. Deming's 14 points, "Create a consistency of purpose ..."
>
> A second, more subtle point is that the first purpose has an
> "inside-out" view; how does the company view the outside world,
> while Dr. Deming's purpse has an "outside-in" view;

DRUCKER:
The modern corporation is a political institution; its purpose is the creation
of legitimate power in the industrial sphere.


> how does
> the outside world view the company?

WTO v. WORLD-WIDE PROTEST GROUPS

Change is in the air.



> As an outsider, would
> you prefer to deal with a company whose purpose is to
> "get and keep" you or would with a company whose purpose
> is for customers to gain over the long run?
>

GIMME BOTH, D*MNIT.
And I don't much care for the quotation marks you put around "get and keep".
The intent of the phrase is customer satisfaction.

>
> I beleive we should avoid trying to define a universal purpose
> business.  It doesn't exist and diverts attention from changing
> a company's existing purpose to a better one.
>

OK by me.

Bob
--
C. Robert Clements
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CANADA  K8P 1A8
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