7 junio, 2024

Business philosophy: concept, elements, creation, examples

what is the Business philosophy?

The Business philosophy A company’s philosophy or philosophy is the bringing together of a company’s culture or environment into a set of core values ​​that inform all aspects of its business practices. This is often referred to as the company’s mission or vision statement.

Basically, the business philosophy comprises the company’s operational blueprint. This philosophy explains what are the general objectives of the company and its purpose. Likewise, it also describes which are the values ​​that are most important to the company.

Having a strong business philosophy is a good way to guide employee decision-making, but it can also be a tool to strengthen your brand and generally make the workplace more enjoyable. Once a company creates a business philosophy, it must enunciate that philosophy to its employees.

Having a strong business philosophy is the cornerstone of a successful business. The process of developing and understanding a business philosophy can help build a cohesive and productive organization that is well-equipped to handle whatever challenges you may face.

Elements of business philosophy

The main elements of a company philosophy are:

Principles that govern work in the company.
The mission statement; State why the company works.
Code of ethics; Talk about company values ​​when doing the job.

How is the philosophy of a company created?

A good business philosophy successfully describes a company’s values, beliefs, and guiding principles. Creating a philosophy takes time and diligence on the part of business leaders.

When writing the philosophy, leaders should ask themselves: What is the nature of my business? Who are my customers? What values ​​are important to me? And what is my overall vision for the company? The answers to these questions will form the basis of a solid business philosophy.

fundamental questions

Here are some questions that can be asked to be clear about the philosophy of a company:

People first or profits first?
Is loyalty valued or competition valued?
Employees first or customers first?
Focus on giving or focus on receiving?
Do what’s best for the customer or do what it takes to make the sale?
Be generous with wages or pay as little as possible?
Be fair and reasonable or seek results at all costs?
Transparency or just a need to know?

The truth is that there are no right or wrong answers to the above questions; It all depends on the business philosophy.

How these questions are answered will determine the company’s long-term trajectory, the type of employees it will attract, the type of customers it will retain, and the amount of revenue and profits it will earn.

Principles present in successful companies

Although these principles inevitably vary from one company to another, here are five that are frequently recurring in the most successful companies:

Maintaining high ethical standards in external and internal relationships is essential for maximum success.
Decisions must be based on facts, considered objectively, which is called the technique for fact-based and thought-through decision-making.
The business must be kept in tune with the forces operating in its environment.
People should be judged based on their performance, not their education, personality, or personal skills.
The business must be managed with a sense of competitive urgency.

Take the time to think through your business vision, mission, and core values, and then carefully create a clear business philosophy for the following:

How do you plan to run the organization from now on? What do you stand for? What do you refuse to do? How do you want employees, customers and the community to think of the company?

Business Philosophy Examples

As a business entity, a company’s philosophy is a reflection of the values ​​of its leaders. Some business philosophies are well known, such as Google’s, which lists attributes like «it’s best to do one thing really well» and «you can make money without doing bad.»

1. Nestle

Nestlé’s overall business philosophy can be summed up in one slogan: Good food, Good life. Therefore try to offer good food to have a good life. Its values ​​include developing products based on scientific principles, acting legally and honestly, and respecting employees and people with whom they do business.

2.Apple

Apple’s business philosophy is summed up in its vision: «to produce the best personal computing products for students, designers, educators, engineers, scientists, and consumers in general.» They not only aim to produce the best products, but also to contribute to a better world.

3.Facebook

Facebook’s business philosophy meets its mission and values; make a more connected world, improve people’s lives, be open, move fast in business, be ambitious and give social value.

These values ​​allow Facebook to offer its customers its main product; highly targeted ads for all types of businesses.

4.Google

Not every company needs to have a mission statement, philosophy, and code of ethics, but an example of a company that has all three is Google.

mission statement

A mission statement should succinctly summarize what you do or what your goals are. Google’s mission statement is «To organize the world’s information and make it universally accessible and useful.»

Philosophy

A business philosophy should embody a mission statement, which is concise and almost motto-like based on core ideas or values ​​that the company and its members cherish and adhere to in their business.

Google’s philosophy includes principles such as «fast is better than slow,» «democracy on the web works,» and «you can be serious without trial.»

Code of ethics

A code of ethics or code of conduct is further expanded in the philosophy and mission statement, to deal with specific types of situations and behaviors.

Google establishes its policies on, among other things, conflicts of interest, customer service and confidentiality.

5. Learn it!

mission statement

We are committed to being the best at what we do so that you can be the best at what you do.

purposeful action

We are in the business of affecting lives. An action has a purpose if it helps others.

Commitment to innovation

Nothing excites us as much as a good idea! If there are no changes, we remain stagnant, bored and ineffective.

The Golden rule

It’s quite simple, but this little test can be a very effective life and business tool. Treat others as you want to be treated. That’s all. Difficult decisions, make them easier.

Responsibility

Every Learn it! make our customers have quite an experience.

This means giving a student a little extra help after school, setting up a special “talk to an expert” conference, or simply tidying up the coffee counter. “That’s not my job description” is not in our job description.

Teamwork

Learn it! understands that smart and helpful people who work together grow bigger as a whole. We work together and help each other. It can be difficult when a company is structured for everyone to feel involved, but we think it’s worth it.

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