Business management theory or thesis can become very complicated at times that is hard to grasp and even more to implement. It is too complicated that, at times, having a master’s degree in Finance or even in Business Administration may not be sufficient to decode the secret to successfully building and running a thriving business. Although a business can grow into a large complicated organization with complicated dynamics and parameters to handle, for the aspiring entrepreneurs, it is important to understand the simple mechanic of a business to provide the map that can guide them through the maze in building their business.
Figure 1. shows a simple diagram of the basic business blocks. Human, Finance, Market, and Product, these are like four parts of jigsaw puzzles and Culture part as the glue that keep all these parts together. The idea behind this diagram is, you can build these four pieces of the jigsaw puzzle together, but without the culture as the glue to all these four parts, they may fall apart. As we are putting these puzzle pieces together, the centerpiece should never be forgotten, and it should be managed actively.
To drill this down to the must-have major parts of the business, Ray Dalio, the founder of Bridgewater Associates, which is a global macro investment firm and is the world’s largest hedge fund, posted his thought on his Linkedin post drilled it down to 2 Major parts, Culture and People (human). We would discuss this mechanic further in other blog posts.
Council Post: Why Does Culture ‘eat Strategy For Breakfast’? – Jacob Engel
Ray Dalio on Linkedin: #principleoftheday