2 a)
1. Peter Drucker: Peter Drucker, a renowned management scholar, defined a business
organization as a purposeful and structured entity that combines resources, people, and
processes to achieve specific goals. According to Drucker, a business organization exists to
create and deliver value to customers, and its success depends on effective management
practices, innovation, and a clear understanding of its mission and objectives.
2. Michael Porter: Michael Porter, a prominent economist and business strategist, emphasizes
the competitive advantage of business organizations. He defines a business organization as a
collection of activities that work together to create and deliver products or services to
customers. Porter’s perspective focuses on the importance of strategic positioning,
differentiation, and creating value for customers in order to gain a competitive edge in the
market.
3. Elon Musk: Elon Musk, a visionary entrepreneur known for his involvement in companies like
Tesla, SpaceX, and Neuralink, views business organizations as vehicles for driving innovation
and solving pressing societal challenges. Musk’s perspective emphasizes the importance of
disruptive technologies, sustainability, and pushing the boundaries of what is possible. He
believes that business organizations should have a clear mission and purpose that goes
beyond profit-making, aiming to make a positive impact on the world.
Business organizations play a crucial role in society and contribute to its overall well-being in various
ways. Here are the benefits that business organizations provide to society:
1. Economic Growth and Job Creation: Business organizations drive economic growth by
creating jobs and generating income. They contribute to the overall prosperity of society by
providing employment opportunities and stimulating economic activity.
2. Innovation and Technological Advancement: Businesses are at the forefront of innovation,
developing new products, services, and technologies that improve the quality of life and
drive progress in various sectors. They invest in research and development, leading to
advancements that benefit society as a whole.
3. Wealth Creation and Distribution: Business organizations generate wealth through their
operations, which contributes to the overall prosperity of society. This wealth creation allows
for the distribution of resources through wages, salaries, dividends, and taxes, which helps
support public services and social welfare programs.
4. Tax Revenue: Businesses contribute significantly to government revenue through various
taxes, including corporate taxes, sales taxes, and payroll taxes. This revenue is essential for
funding public infrastructure, education, healthcare, and other essential services.
5. Consumer Satisfaction and Choice: Businesses provide a wide range of products and services
that cater to the diverse needs and preferences of consumers. This leads to increased
consumer satisfaction and choice, enhancing the overall quality of life.
6. Social Responsibility and Philanthropy: Many businesses engage in corporate social
responsibility initiatives and philanthropic activities, supporting community development,
environmental sustainability, and social causes. They contribute to social welfare programs,
charitable organizations, and community projects, making a positive impact on society.
7. Skills Development and Training: Businesses invest in employee training and development,
equipping individuals with valuable skills and knowledge. This not only benefits the
organization but also enhances the employability and professional growth of individuals,
contributing to a skilled workforce and societal progress.
8. Infrastructure Development: Business organizations often invest in infrastructure
development, such as building factories, offices, and transportation networks. These
investments contribute to the development of physical infrastructure, which benefits society
by improving connectivity, transportation, and overall economic development.
9. Competition and Market Efficiency: Businesses foster competition, which leads to improved
efficiency, better quality products, and competitive pricing. This benefits consumers by
providing them with more choices and ensuring that businesses continually strive to meet
their needs and expectations.
10. Global Trade and Economic Integration: Businesses facilitate global trade and economic
integration by engaging in international markets, exporting goods and services, and
participating in global supply chains. This promotes economic cooperation, cultural
exchange, and mutual understanding among nations.
11. Entrepreneurship and Small Business Growth: Business organizations provide a platform for
entrepreneurship and small business growth. They support startups and small enterprises,
which are vital for job creation, innovation, and economic diversification.
12. Social Mobility and Economic Opportunities: Businesses provide opportunities for social
mobility by offering employment and career advancement prospects. They create pathways
for individuals to improve their socio-economic status, enhance their skills, and achieve
upward mobility.
2b
When setting business objectives, it is important to consider measurable and effective goals that
contribute to realizing an organization’s economic value. Here are nine such objectives:
1. Increase Revenue: One of the primary objectives for any business is to increase revenue. This
can be achieved through strategies such as expanding customer base, increasing sales
volume, or introducing new products or services.
2. Improve Profitability: Profitability is a key measure of an organization’s economic value.
Objectives related to improving profitability may include reducing costs, optimizing pricing
strategies, or increasing profit margins.
3. Enhance Customer Satisfaction: Satisfied customers are more likely to become repeat
customers and recommend the organization to others. Objectives related to customer
satisfaction can include improving customer service, enhancing product quality, or
implementing feedback mechanisms to address customer needs.
4. Expand Market Share: Increasing market share allows an organization to capture a larger
portion of the market and gain a competitive advantage. Objectives related to market share
may involve market penetration strategies, targeting new customer segments, or expanding
into new geographic regions.
5. Enhance Operational Efficiency: Improving operational efficiency can lead to cost savings and
increased productivity. Objectives in this area may include streamlining processes,
implementing automation or technology solutions, or optimizing supply chain management.
6. Develop and Retain Talent: Human capital is a valuable asset for organizations. Objectives
related to talent development and retention may involve initiatives such as training and
development programs, creating a positive work culture, or implementing effective
performance management systems.
7. Foster Innovation: Innovation is crucial for staying competitive and driving economic value.
Objectives related to fostering innovation may include investing in research and
development, encouraging creativity and idea generation, or establishing partnerships for
collaborative innovation.
8. Enhance Brand Reputation: A strong brand reputation can positively impact an organization’s
economic value. Objectives related to brand reputation may involve building brand
awareness, improving brand perception through marketing and communication strategies, or
engaging in corporate social responsibility initiatives.
9. Ensure Financial Stability: Financial stability is essential for long-term success. Objectives
related to financial stability may include maintaining a healthy cash flow, managing debt
effectively, or diversifying revenue streams to reduce risk.
References
Here are some highly recommended books about business organizations, along with their APA
citation referencing format:
1. Title: "Organizational Behavior: Improving Performance and Commitment in the Workplace"
Author: Jason A. Colquitt, Jeffery A. LePine, Michael J. Wesson
Year: 2019
Publisher: McGraw-Hill Education
APA Citation: Colquitt, J. A., LePine, J. A., & Wesson, M. J. (2019). Organizational Behavior:
Improving Performance and Commitment in the Workplace. McGraw-Hill Education.
2. Title: "Organizational Theory, Design, and Change"
Author: Gareth R. Jones
Year: 2018
Publisher: Pearson
APA Citation: Jones, G. R. (2018). Organizational Theory, Design, and Change. Pearson.
3. Title: "The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail"
Author: Clayton M. Christensen
Year: 2016
Publisher: Harvard Business Review Press
APA Citation: Christensen, C. M. (2016). The Innovator's Dilemma: When New Technologies Cause
Great Firms to Fail. Harvard Business Review Press.
4. Title: "Good to Great: Why Some Companies Make the Leap... and Others Don't"
Author: Jim Collins
Year: 2001
Publisher: HarperBusiness
APA Citation: Collins, J. (2001). Good to Great: Why Some Companies Make the Leap... and Others
Don't. HarperBusiness.
5. Title: "The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create
Radically Successful Businesses"
Author: Eric Ries
Year: 2011
Publisher: Crown Business
APA Citation: Ries, E. (2011). The Lean Startup: How Today's Entrepreneurs Use Continuous
Innovation to Create Radically Successful Businesses. Crown Business.
6. Title: "Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of
Human Consciousness"
Author: Frederic Laloux
Year: 2014
Publisher: Nelson Parker
APA Citation: Laloux, F. (2014). Reinventing Organizations: A Guide to Creating Organizations
Inspired by the Next Stage of Human Consciousness. Nelson Parker.
