Foundational Philosophies of Management: Analyzing Peter Drucker's Theories

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Foundational philosophies of management: Peter Drucker According to management-by-objectives theorist Peter Drucker at, "the great majority of businesses, all over the world, are inwardly focused, partly because they see the inward people every day and partly because there is a dilemma if you do not take your product or your service seriously, you do a poor job" (Darroch 2009: 8). But this inward focus can cause a company to lose touch with the needs of its customers. In an interview conducted at the end of his life, Drucker stressed the need for organizations to innovate and change with the times. Universities must serve alternative populations, such as older students. Supermarkets must change their product lines to suit customers' altered tastes and lifestyles. As noted by Kralev (2011) in his analysis of Drucker's contribution to managerial theory, the actions of the organization must be aligned with specific, measurable goals. In the interview, Drucker makes it clear that meeting productivity goals are usually the most important objectives an organization must fulfill, whether it is a for-profit or not-for-profit entity. These goals should not be esoteric in nature. Drucker stresses that marketing goals must be customer-focused initiatives, "a supermarket needs to focus on the customer and bankers need to focus on services" and "marketing is the business as seen from the customer" (Darroch 2009: 9). Drucker also stresses that businesses must not confuse their own

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