Business is a socially legitimate activity that derives its directly to exist via economic functionality and the capacity it creates for on its own, for its shareholders, and for it is wider network of constituencies. It is in debt for its cultural legitimacy towards the trust this inspires in employees and society at large; to its collaboration with governments and other real estate agents in solving problems of social importance, and to their enduring commitment to delivering economic value that acts the public good.
The Information Universe
In the developing world, there are two key economic regimes or planets: a bulk-processing globe yielding products that essentially congeal resources with a little knowledge below Marshall’s ideas of decreasing returns, and a knowledge-based part of the economy that makes increasing-returns electronic commodities, just like Hewlett-Packard’s computers. Companies in the knowledge universe often have business that span both worlds. But quite often, high-tech corporations separate their very own knowledge-based functions from their bulk-processing ones.
The Management Environment
In the understanding world, competition is usually not a simple exercise in bargaining but a series of missions to deliver another technological winner–the next cash cow. In that milieu, managers have to be even more mission-oriented than production-oriented. They should organize commando units of people–those that can deliver the following product that will make a company rich–in small teams that report directly to the a knockout post CEO or to the board of directors.