Why are you in business?
During a recent discussion about the new iPhone 5, a friend asked our group, ‘why Apple is in business’? A business is an activity that provides goods or services to consumers for the purpose of making a profit.
When Steve Jobs and Steve Wozniak created Apple Computer in Jobs’ family garage, they started a business. The product was the Apple I, and the company’s founders hoped to sell their computers to customers for more than it cost to make and market them. If they were successful, which they were, they’d make a profit. Profit is the difference between the revenue that a company brings in from selling goods and services and the costs of generating this revenue.
Our discussion expanded to the key players in Apple and how each had role in making Apple successful and answering the why Apple was in business. The participants in any business are Owners, Employees and Customers. Every business must have one or more owners whose primary role is to invest money in the business. When a business is being started, it’s generally the owners who polish the business idea and bring together the resources – money and people – needed to turn the idea into a business.
The owners also hire employees to work for the company and help it reach its goals. Owners and employees depend on a third group of participants — customers.
Ultimately, the goal of any business is to satisfy the needs of its customers in order to generate a profit. These groups are at the center of a business model.
Karen Collins in her text shows the model in this fashion. At the center Owners, Employees and Customers; they are surrounded by the functional areas –Management, Finance, Operations, Accounting and Marketing. The additional factors that affect the ability to make profit, answer the why we’re in business, are the economy, the government, consumer trends and business or industry desire to be a good Corporate Citizen.
A company’s culture matters, it is critical to the organizations success or failure. For a company culture depends on the owners and the employees, capturing the hearts, minds and sales of customers, with service and products. Sometimes consultants and other get lost in Mission Statements, Strategic Direction and goals/objectives.
When Steve Jobs and Steve Wozniak created Apple Computer in Jobs’ family garage, they started a business. The reason was to make a profit. Companies with good cultures increase market share, grow and deliver better returns. Good cultures want to grow, they want to invest, create jobs, provide opportunities for employees and the community.
Thanks for all you do.
Let’s finish September and the balance of 2012 strong, working united.