Business is a socially legitimate activity that comes its directly to exist via economic functionality and the legitimacy it creates for themselves, for its traders, and for their wider network of constituencies. It owes its public legitimacy towards the trust this inspires in employees and population at large; to its joint venture with governments and other substances in solving problems of social importance, and to its enduring dedication to providing economic value that serves the public great.

The Information Universe

In the industrialized world, there are two main economic routines or realms: a bulk-processing environment yielding items that essentially congeal resources after some knowledge under Marshall’s principles of decreasing returns, and a knowledge-based part of the economy that creates increasing-returns online commodities, like Hewlett-Packard’s computers. Companies inside the knowledge universe often have operations that period both sides. But more often than not, high-tech companies separate their knowledge-based experditions from their bulk-processing ones.

The Management Environment

In the know-how world, competition can be not a basic exercise in bargaining yet a series of quests to deliver another technological winner–the next cash cow. In such a milieu, managers have to be more mission-oriented than production-oriented. They should organize section units of people–those who are able to deliver the up coming product that will aid a company rich–in small teams that record directly to the CEO or to the board of directors.