The Importance of Business Philosophy

The Importance of Business Philosophy

Business Goals & Objectives
In an era that encourages entrepreneurship, values,culture, and philosophy of business enterprises need focus in the first place, as these are the key factors that design the destiny of the business. Technology disruption is happening around, coupled with disruptive industrial revolution.

In such a scenario, it becomes imperative for even small businesses to have core values that are drawn from the entrepreneur’s core values, based on which its business philosophy values and culture evolve.

Majorly, these factors differentiate the business midst its competitors, where the products or services rendered by all the players are equally good.

Industry has always critiqued that recent graduates from business schools possess knowledge that is too academic that have little significance in the real-time business scenario. The industry employers feel that graduates need to have specialised knowledge aapart from having Communication Skills, Computer Skills, Interpersonal Skills, Listening Skills, and other Soft Skills that differentiate the business graduates from one another. But what they find are MBA graduates who are not exposed to the multicultural, fast-paced and high-risk inclined job and hence forcing the industries to engage in training activities. Here lies the gap between the industries and the institutions, as industries believe that business schools should have trained the graduates to be work-ready, while the institutes believe that industry should train the graduates to have strong theoretical and academic knowledge of business skills which would be honed further with experience and exposure to industries. And the crux of this problem is that the beliefs of both the institutes and the industry are justified.

Business Philosophy Definition

Business philosophy defines why a business is done in a particular way it is done. Your business philosophy can be an unwritten attitude or a precisely written philosophy that defines how your teams will operate and interact with each other and with the public. When drafting your business philosophy, never be someone who demands extra performance from the employees or be an absolutist that cut things right and tight.

Business philosophies might fire either ways; hence, be clear in crafting it so that it only encourages positive habits and evolves best practices that become a part of the company culture. The written policy or the codified policy should bear a part of the mission statement, code of ethics that states the basis of leaders’ plan for success and the goal that the company is heading towards.

Importance of Business Philosophy

Business philosophy is a risky variable when it is not planned well. Business philosophy primarily refers to an individual’s core belief that catches up with the team that works together. Moreover, business leaders that focus on inculcating an upbeat corporate culture erect their philosophy from the mission statement and on the organization’s policy of ethics. Leaving out the defining part of the business philosophy might result in teams picking up the dominant group’s philosophy that does not jell with the company’s aspired outlook. The result could be a slump in the quality overall.

On the contrary, if a business leader clearly defines that expertise as a core value, it results in providing finest products that last, or services that gain credibility midst the customers.

Further, the code of ethics should affirm not only about treating employees with respect and inclusiveness but to also approach customer relations with integrity. Such business philosophy evidently leaves scope for compromising and providing weak products to customers. Moreover, a clearly stated business philosophy requires a clearer positioning, which is the responsibility of the leader.

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Keep Business Philosophy Simple

Businesses more often deal with a varied personnel and a varied population; hence, it is imperative to keep the philosophy part of the business simple. When business philosophies are ambiguous, it reflects in terms of the workforce and the customers ignoring it or misconstrues it; both scenarios devour the purpose of the philosophy. Even if the business philosophy doesn’t exist as a written doctrine, but only practically implemented, ensure it is consistent.

Moreover, never compromise on your business philosophy and ensure that the leaders of your team follow it devotedly. Disagreements to the philosophy should be discussed in person to evade the emergence of different groups with practicing company culture that is different from the purpose.

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  • How does Philosophy and Business interacts in today’s business setting and how does Philosophy in Business contribute to the betterment of today’s business men and Society in general?