Case Study # 1Peter Drucker-The Man who invented Management

Muhammad Faisal Zafar

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Managerial Economics

Who is Peter Drucker?

• He was an Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation

• Peter strongly influence most business leaders and politicians

Fundamental Questions

• What business are we in?• Who are our customers?• What does the customer consider value?• Transformation of long term objectives into

achievable goals (SMART goals)

Jack Welch Success Story

• He was the CEO of General Electric• He followed principle of Peter Drucker, that

either you had to be No.1 or No.2 in the particular line of business or get out of it.

• Jack was responsible for tremendous growth in General electric during his 15 years tenure.

Management Principles

• Employee Empowerment• Economy of good to economy of knowledge• Continuous training and development• Change should be considered as an

opportunity not threat• Every decision is risky, it could be minimized

with proper planning