The purpose of an organization is to enable ordinary humans beings to do extraordinary things.
Peter DruckerRead
Because its purpose is to create a customer, the business enterprise has two - and only these two — basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are 'costs'.
Interpretation
What this quote means
This quote emphasizes that the core functions of a business are marketing and innovation, while other activities are merely expenses.
Peter Drucker's quote highlights the essential roles that marketing and innovation play in a business's success. He argues that these two functions are critical for creating and maintaining customers, suggesting that the primary focus of any enterprise should be on activities that generate value and results, while all other functions may be seen as unnecessary costs to the business.
Themes
BusinessMarketingInnovationCustomerSuccess
In practice
Example use cases
In a business conference discussing the importance of staying relevant in the market.
More from Peter Drucker
All quotes →In the Western tradition, we have focused on teaching as a skill and forgotten what Socrates knew: teaching is a gift, learning is a skill.
Peter DruckerRead
We now accept the fact that learning is a lifelong process of keeping abreast of change. And the most pressing task is to teach people how to learn.
Peter DruckerRead
The basic economic resource - the means of production -_x000D_ _x000D_ is no longer capital, nor natural resources, nor labor._x000D_ _x000D_ It is and will be knowledge.
Peter DruckerRead
Unless commitment is made, there are only promises and hopes... but no plans.
Peter DruckerRead
The strength of the computer lies in its being a logic machine. It does precisely what it is programed to do. This makes it fast and precise. It also makes it a total moron; for logic is essentially stupid.
Peter DruckerRead
Similar quotes
An important priority for me is a business must get their own house in order. Be or become an agent of positive change in your own enterprise and adopt responsible practices to eliminate the risks that often lie at the root of inequality and poverty.
Richard BransonRead
Market leadership can translate directly to higher revenue, higher profitability, greater capital velocity and correspondingly stronger returns on invested capital.
Jeff BezosRead
Entrepreneurs have only the murkiest picture of the future in which they are making their bets, and also there is ambiguity: they don't know when they push this lever or that lever that the outcome is going to be what they think it is going to be - there is the law of unanticipated consequences.
Edmund PhelpsRead
The sooner you cut off negotiations with someone you shouldn't be dealing with, it gives you the chance to move on to a more profitable deal.
Christopher VossRead
I wasn't running toward the theater but running away from the sporting goods store. Of course now that I'm selling spaghetti sauce (with Newman's Own), I begin to understand the romance of business.. the allure of being the biggest fish in the pond and the juice you get from beating out your competitors.
Paul NewmanRead
Competition should not be for a share of the market-but to expand the market.
W. Edwards DemingRead